As the tide of Software-Defined Vehicles (SDVs) rises, mainstream automakers from Europe, North America, Japan, and South Korea are quietly recalibrating their strategies. Having initially gambled on full-scale, self-developed software platforms—fearing they'd be reduced to low-margin hardware suppliers—they are now embracing a more pragmatic approach.
Over the past two weeks, Tesla CEO Elon Musk has promoted his company's new partnership with Samsung Foundry for manufacturing its AI chips. At one point, South Korean media speculated that Samsung might even take over exclusive foundry orders for Tesla's Dojo chips originally handled by TSMC, only to discover later that Musk had decided to shut down the supercomputer project.
As Taiwan's machinery industry grapples with the dual pressures of currency volatility and rising tariffs, one company is defying the broader sector's gloom. Quaser Machine Tools, a precision equipment manufacturer, is doubling down on the high-margin aerospace sector—and seeing results.
For years, the biggest perceived roadblocks to widespread electric vehicle (EV) adoption were clear: prohibitive sticker prices, range anxiety, and too few public chargers. But as the global EV market grows, one of those long-held assumptions is being turned on its head.
On July 31, 2025, US President Donald Trump signed an executive order to adjust reciprocal tariff rates, setting the provisional tariff for Taiwan at 20%, effective from August 7, 2025. According to senior government officials in Taiwan, relief measures have been initiated, and affected businesses are urged to apply within the stipulated timeframe. For traditional industries, China faces tariffs exceeding 50% on related goods, which provides Taiwan with a competitive opportunity to gain market recognition.
Amid global market uncertainties, including US tariffs, Abico Asia reported negative profits in the first quarter of 2025 due to valuation losses in its investment portfolio. Despite this sluggish start, the investment firm expects improved outcomes in the second half of the year as several unlisted portfolio companies move towards capital market entries.
South Korean battery equipment manufacturers are positioning themselves to benefit from India's accelerating push into advanced battery production, with Tata Group's battery subsidiary Agratas emerging as a major potential customer.
President Donald Trump has reached a new tariff agreement with key US trade partners, including the European Union, Japan, and South Korea, setting a unified reciprocal tariff rate of 15% that for the first time includes automobiles and auto parts. The policy, which took effect on August 7, 2025, could deliver a significant boost to foreign carmakers and suppliers operating in the US, but uncertainty lingers.
The global electric vehicle market is increasingly dominated by three major regions: China, Europe, and the United States. While China's EV ecosystem—including vehicle sales and charging infrastructure—continues to accelerate, Germany faces setbacks due to underused public charging stations. In the United States, however, a dramatic policy reversal under President Donald Trump is threatening to unravel recent federal efforts to build a more equitable and accessible charging network.
In a significant outcome of the ongoing US-South Korea trade deal, tariffs on automobiles and auto parts have been reduced from 25% to 15% as of April 2025. The two nations also agreed to extend most-favored-nation (MFN) treatment to qualifying countries. They reached a preliminary consensus on mutual recognition of US automotive safety standards, while continuing talks to ease non-tariff barriers.
India has approved four additional semiconductor projects under the India Semiconductor Mission (ISM), further strengthening the country's semiconductor manufacturing ecosystem. These projects bring the total number of approved initiatives to ten, involving cumulative investments of approximately INR1.60 trillion (approx. US$18.27 billion) across six states.
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