China's expanded vehicle trade-in program is set to reinforce its rise as the world's largest auto market, supporting domestic demand while intensifying export pressure overseas. As sales overtake Japan's for the first time, the policy highlights how Beijing is linking consumption stimulus with industrial and geopolitical ambitions.
2025 proved turbulent for downstream applications and end-user devices. Tariffs and geopolitical tensions dominated the first half, while AI gained momentum later in the year. Global market unpredictability pushed many brands—particularly in China, the epicenter of geopolitical tensions—toward domestic markets and self-sufficiency.
The Ministry of Transportation and Communications (MOTC) released the Taiwan New Car Assessment Program (TNCAP) results for the fourth quarter of 2025 on December 29, 2025, highlighting the Luxgen N7 as the sole model to achieve a 5-star safety rating. The announcement follows comprehensive testing of four selected vehicles, an initiative aimed at enhancing consumer transparency and raising overall vehicle safety standards across Taiwan.
Fukuta is accelerating its push into the emerging unmanned vehicle market by developing compact electric motor and joint motor modules, aiming to capitalize on new structural opportunities in the electric motor supply chain driven by drones, low-earth orbit satellites, and robotics moving from demonstration to commercial use.
LG Energy Solution has ended its battery supply agreement with US module maker FBPS (Freudenberg Battery Power System), following a separate contract termination with Ford Motor Company, marking the combined termination of deals worth approximately KRW13.5 trillion (US$9.38 billion). The move reflects ongoing instability in the electric vehicle (EV) battery sector amid subdued vehicle demand.
Samsung Electronics has begun supplying its advanced Exynos Auto V720 processor to BMW's iX3 electric vehicle, signaling the company's formal entry into the automotive semiconductor market, according to Hankyung and Yonhap News Agency. The chip, manufactured using a 5nm process, powers the in-vehicle infotainment (IVI) system of BMW's new generation EV series, Neue Klasse.
At the close of 2025, the European Commission dropped a bombshell on the continent's auto industry with its new Automotive Package, introducing unprecedented uncertainty for manufacturers and fleet operators alike.
The global automotive industry experienced moderate growth in 2025, driven by electrification and smart technologies. But rising geopolitical risks, cost pressures, and uneven regional demand are deepening market segmentation. As automakers recalibrate strategies, component suppliers—particularly in Taiwan—are positioning for a cautious and highly selective recovery heading into 2026.
If the years from 2021 to 2023 marked an era of idealism—when the global auto industry appeared to sprint in unison toward an all-electric future—2025 signals the beginning of a different phase. Electrification is no longer a singular creed. It has become a series of pragmatic choices, weighed against cost pressures, policy uncertainty, and rising geopolitical risk.
In the transformation of automotive electronics and electrification (E/E), subsidies have long been regarded as the fuel propelling the shift. Yet in 2025, Germany's electric vehicle (EV) market is experiencing what could be described as a "sudden assault after the rations end."
MediaTek has announced a collaboration with Japanese automotive giant Denso to jointly develop customized SoC products for advanced driver-assistance systems (ADAS) and smart cockpit technologies. By combining Denso's expertise in automotive safety standards with MediaTek's chip development experience and IP portfolio, the partners aim to rapidly create and mass-produce solutions tailored to automakers' specific needs.
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