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Sep 4, 11:05
Analysis: Physical AI upgrades autonomous driving and lifts Taiwan supply chains
As end-to-end (E2E) autonomous driving architectures gradually become mainstream, the inference demands of physical AI are driving radical transformations in automotive system-on-chip (SoC) design. DIGITIMES Intelligence analyst Jasper Jiang notes that neural processing units (NPUs), or dedicated AI accelerators, are becoming the core processing engines of next-generation automotive SoCs to satisfy three stringent demands of AI inference in autonomous driving: ultra-low latency, reduced system power consumption, and minimized memory bottlenecks.
Taiwanese autonomous driving startup Turing Drive marked its eighth anniversary on August 31, with CEO David Shen highlighting at the event the company's efforts in advancing self-developed technologies and overseas expansion starting with Japan.
VinFast has suspended plans to manufacture three electric vehicles in India and ordered suppliers to halt work while it reassesses costs, according to two sources and a company memo reviewed by Reuters. The pause stalls the localization push the Vietnamese automaker had placed at the center of its India strategy, barely a year after opening its first factory outside Vietnam.
The European Union is pushing to strengthen domestic second-life battery production and recycling loops, but EV battery recycling still faces a contradiction: the technology is maturing, yet a sustainable business model has not emerged.

China has introduced new guidelines aimed at steering its automotive industry toward more orderly competition overseas as domestic automakers and suppliers expand rapidly into international markets.

The 2026 Global Automotive and Technology Expo (GATE 2026), held August 26-28 at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur, was ostensibly about the future of mobility. But the stronger message from the three-day event was about something more fundamental: Malaysia wants foreign automakers to build an industrial ecosystem, not simply sell cars.
The autonomous driving industry is gaining momentum as advances in AI, sensing and semiconductor technologies expand opportunities in vehicle computing, machine vision and Physical AI. At Taiwan-based Turing Drive's eighth-anniversary press event, longtime partners Vecow and oToBrite shared their perspectives on the evolution of autonomous vehicles, in-vehicle computing and robotics.
BYD sold more abroad than at home in the first half of 2026, a threshold the company crossed for the first time and the clearest signal yet that the center of gravity of its car business has moved offshore. Overseas revenue reached CNY181.3 billion (US$26.88 billion), compared with CNY163.5 billion in China, according to the geographic breakdown in the interim report released on 28 August. A year earlier, the split ran the other way, by a wide margin.
BYD and Geely Auto were nearly neck and neck in vehicle sales in the first quarter of 2026, raising expectations of a close contest between China's two leading new-energy vehicle makers. The gap widened sharply in the second quarter, however, largely because BYD sold more vehicles overseas. Even so, stronger international sales have yet to reverse the company's profit decline.
LG Energy Solution has signed a long-term supply agreement with Smackover Lithium for battery-grade lithium carbonate, a move that could strengthen supply chains for energy storage systems and electric vehicles at a time when global demand for critical minerals remains tight.
The global battery space has long been characterized by China's overwhelming dominance, leaving other established players subdued and struggling to establish a foothold in the industry for years.
The 2026 Global Automotive and Technology Expo (GATE 2026) closed on August 28 at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur. It highlighted Malaysia's contradictory but pragmatic stance toward China in the auto sector. Over the three-day event, the main story for ASEAN's auto industry was not a new car or new technology. It was Malaysia's balancing act around the "China factor."