Smartphone manufacturers have reduced the number of camera lenses to make devices thinner, focusing on performance and image correction instead. This trend has led suppliers like LG Innotek to pivot toward high-resolution sensors and automotive camera modules.

The automotive cameras sector is experiencing a noticeable slowdown in 2025 after several years of rapid growth, which industry players generally attribute to the sluggish adoption of autonomous driving services and frequent vehicle design adjustments by automakers due to various internal and external factors. Even so, the industry remains confident in sustained demand growth in the long term.

Taiwan's semiconductor automated test equipment (ATE) maker Chroma ATE has filed a lawsuit against Good Will Instrument (GW Instek), accusing the rival instrument maker of infringing on its intellectual property by copying the name and interface of its self-developed automated test system, ATS 8000. The case was submitted to Taiwan's Intellectual Property and Commercial Court on September 1, 2025, under the Fair Trade Act.

BYD's financial report reveals a 30% year-over-year decline in profit for the second quarter of 2025. This drop not only fell short of market expectations but also marked the first decline since 2021, underscoring how intense price competition in China's automotive market is affecting even industry leaders.

As trade talks between the Trump administration, the European Union, and Japan advance toward a "spec-for-tariff" arrangement, Taiwan faces growing uncertainty over its imported car market. The proposed scheme would allow US-spec vehicles to enter Europe and Japan without local specification restrictions and could eventually extend to Taiwan, raising questions about whether it would invigorate consumer demand or further strain the domestic automotive industry.

On August 24, 2025, South Korea's National Assembly officially passed amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, otherwise known as the "Yellow Envelope" bill. Spearheaded by South Korea's current ruling party, the bill has caused significant concern in the country's industrial sector, with potential unrest brewing in its aftermath.

Taiwan's auto market has entered a deep freeze in 2025, with industry leaders pointing to ongoing tariff uncertainties as a major source of disruption. At an investor briefing on August 27, 2025, Chih-Wei Lai, Director and Spokesman for Hotai Motor Co., Taiwan's largest automobile distributor, said that while market conditions remain challenging, the company's flagship brands — Toyota and Lexus — have expanded their combined market share by 6 percentage points year-over-year through July 2025.

The United States is in talks with the European Union, Japan, and other countries on a proposed "spec-for-tariff" agreement, which would allow US-made vehicles to bypass costly redesigns required to meet local regulations, thereby reducing production and export costs.

Since April 2025, tariffs imposed by President Donald Trump have cast a long shadow over Taiwan's car market, dragging down sales for most brands. Premium electric vehicles bore the brunt of the slump, with demand collapsing for models from Volkswagen, Luxgen Motor, and Toyota. In response, these automakers rushed to roll out time-limited discounts in a bid to salvage sales.

The US's 50% tariff on India took effect on August 27, dealing a blow to Indian exporters. India's semiconductor push is gaining traction.