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Jun 1
US FEOC rules and tariff cuts are redirecting global auto electronics supply chains to Taiwan
US enforcement of foreign entities of concern, or FEOC, rules and a revised non-semiconductor Section 232 tariff preference have prompted a global shift in auto supply chains toward Taiwan, industry participants said, and the benefits are expected to flow through in 2026 and 2027. Executives and spokespeople described accelerating separation from China and a reorientation of orders to Taiwan as the US limits China-linked suppliers and seeks non-red, non-Russia sourcing across automotive electronics and parts.
As Europe and the US fall short of expectations for the automotive electrical/electronic architecture (E/EA) transition, traditional tier-1 suppliers are accelerating diversification efforts to offset slowing automotive growth. Among them, France-based Valeo, one of the world's top-15 automotive parts suppliers, is leveraging its automotive expertise to expand into faster-growing sectors including AI data center infrastructure, defense, robotics and small-mobility solutions.
A six-year battery partnership that once symbolized cross-border cooperation between China and South Korea is coming to an end, reflecting broader shifts in the global energy industry.
At a recent product launch, BYD Chairman and President Wang Chuanfu unveiled the company's first in-house autonomous driving system-on-chip, the Xuanji A3, marking a significant milestone in BYD's push toward greater technological self-sufficiency.
Nvidia announced at its GTC Taipei 2026 event that it will significantly expand the ecosystem of its Nvidia Drive Hyperion robotaxi-ready platform, bringing together global automakers, autonomous driving software developers, and shared mobility service providers.
AUO said its automotive business has entered a high-growth phase, with annual orders for in-vehicle products now exceeding current-year revenue. The company expects revenue benefits from orders secured over the past two years to begin in the second half of 2026 or 2027, supporting growth at AUO Mobility Solutions.
In aerodynamics, the Aito M9 underwent more than 100 engineering refinements, achieving a drag coefficient of just 0.249 Cd — among the lowest ever recorded for a full-size sport utility vehicle.
Xpeng Motors, often described as "China's Tesla," is advancing on two very different international fronts — cautious and measured in South Korea, but increasingly strategic in Europe — while competing Chinese EV peers such as Zeekr accelerate their own overseas expansion.

Samsung Electronics has overtaken Micron Technology to become the world's largest supplier of automotive memory chips for the first time, according to new S&P Global Mobility data, marking a shift in a market long led by the US memory maker.

The US has formally reduced tariffs on Taiwan-made auto parts shipped to the country, a move that could reshape sourcing decisions for automakers and suppliers worldwide. The change lowers landed costs for US buyers, strengthens Taiwan's price position against Southeast Asia, and may redirect more orders to Taiwanese manufacturers.
On May 28, BYD held a major technology launch event to strengthen consumer trust in intelligent driving and accelerate adoption of its three-tier "God's Eye" assisted-driving system — a push that comes as the world's largest EV maker faces mounting price competition, slowing domestic demand, and declining profitability.
Chinese EV maker Xpeng reported a significantly wider net loss for the first quarter of 2026, as the traditional seasonal slowdown in China's auto market weighed heavily on vehicle sales and deliveries.