To help the automotive industry navigate emerging trends, DIGITIMES hosted the "AI x EV: Dual-Track Innovation in Mobility" forum on December 12, bringing together representatives from government, academia, research institutions, and industry to analyze the current state and future outlook of the smart vehicle and electric-vehicle sectors. Hung-Ching Yang, executive vice president of China Motor Corporation under the Yulon Group, spoke on behalf of the industry, sharing both opportunities and challenges for Taiwan's automotive ecosystem.
Foxconn plans to invest NT$15.9 billion (approx. US$510 million) to build a flagship headquarters in southern Taiwan, deepening its footprint in Kaohsiung as the contract electronics manufacturer accelerates its expansion into electric vehicles, artificial intelligence, and software-driven services.
On December 11, 2025, Taiwan officially inaugurated its first hydrogen refueling infrastructure with the simultaneous opening of CPC Corporation's Nanzi station in Kaohsiung and Linde LienHwa Group's Shugu demonstration station in Tainan. The milestone signals a new chapter for Taiwan's hydrogen energy supply chain and practical use in transportation.
China's prolonged price war in the auto market is taking a growing toll on profitability, and even BYD, the country's dominant electric-vehicle maker, is beginning to feel the strain. At the same time, the company's latest sales figures highlight the scale of its operations and the increasingly complex dynamics shaping its growth.
Amid increasing competition in the electric vehicle market, ams OSRAM is focusing on smart lighting and optical sensing. The company is expected to overtake long-time leader Nichia to become the world's top LED packaging supplier, edging ahead by a narrow single-digit percentage margin.
The global automotive supply chain is undergoing significant restructuring driven by geopolitical tensions, particularly between the US and China. This confrontation has extended beyond trade into technology sectors, including chips, algorithms, and electronic control architectures, resulting in the emergence of two incompatible technical ecosystems. This division is compelling industry players to re-evaluate supply chain strategies amid growing concerns over reliance on Chinese components.
Hiroca Holdings, a Taiwan-based supplier of automotive interior components, said its new automated coating line in Mexico is on track to begin phased production by the end of 2025, a move that will support rising orders from major American and Japanese automakers operating in North America. Because the Lunar New Year will fall later than usual in 2026, the company does not expect Taiwanese automakers to pull forward year-end inventory builds in December 2025.
Innolux subsidiary CarUX formally completed its acquisition of Japan's Pioneer on December 1, 2025, a deal that is expected to boost CarUX's annual revenue to as much as NT$100 billion (approximately US$3.2 billion). Jim Hung, chairman of Innolux and CarUX, described the transaction as the company's most significant merger since Innolux's own three-way consolidation, adding that the two sides clicked immediately, and that the combined company will enjoy three major synergies and three strategic advantages.
Germany's auto market is expected to hit a critical turning point in its shift to electrification in 2026.
King Shing Industrial is accelerating its shift into AI-enabled mobility systems while strengthening its core automotive aftermarket business in North America. The Taiwan-based motor and cooling system maker said it is expanding into higher value applications, including unmanned aerial vehicles, autonomous logistics vehicles, and robotics, and plans to begin automated motor production in Thailand in the first half of 2026.
Steel bar and wire maker Camellia Metal has steadily grown sales from the automotive sector, increasing the sector's share of revenue from 33% in 2023 to 39% in 2025 despite challenging conditions. The company is actively expanding into the Southeast Asian market with a three-stage plan aimed at competing against established Japanese supply chains.
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