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Nov 24
German automakers scramble to reduce China dependence after Nexperia crisis
Germany's three automotive giants—Volkswagen, BMW, and Mercedes-Benz—are facing an increasingly difficult balancing act. China remains its largest and most profitable market, yet the recent crisis involving Nexperia, the Dutch chipmaker owned by China's Wingtech Technology, has once again exposed the structural risks of its deep reliance on Chinese supply chains. The episode has forced all three companies to accelerate efforts to reduce their dependence on China.
At Zhong Yang Technology's investor conference on November 21, 2025, General Manager Chih-Cheng Hsu stated that after undergoing significant adjustments over the past two to three years and improving its business structure, the company began seeing results in 2025. Structural growth is expected in 2026, and Zhong Yang is optimistic about automotive, drones, and AR as its most growth-oriented businesses. Additionally, its Thailand plant is expected to start contributing more revenue in 2026.
A new-vehicle debut is always one of the highlights of Foxconn's annual Hon Hai Tech Day, and 2025 has proved no exception. The Model A—the company's compact multipurpose EV—first appeared in static form at the 2024 event. This year, it stepped out of the display zone and onto center stage.
As China's smart electric-vehicle sector accelerates and demand surges for domestically produced automotive-grade chips, the country's auto-chip ecosystem has gained a notable new alliance.
Despite various rumors and external pressures, Foxtron still showcased multiple planned vehicle models at the 2025 Hon Hai Tech Day (HHTD). Among them, the most anticipated was Model B, originally scheduled for release in 2025.
Kian Shen Corporation, a vehicle frame supplier under Taiwan's Yulon Motor Group, expects to secure orders for more than 1,000 electric bus frames in 2026 as supply constraints ease, positioning the electric bus segment as its primary revenue and profit growth driver, according to company president Chiung-chih Tseng.
Japan-based NSK has announced the development of actuators capable of enabling agile movements in humanoid robots. These drive products include rotary actuators for joints such as shoulders and elbows, as well as linear actuators for arms and legs, achieving both miniaturization and lightweight design.
South Korean battery maker SK On has restructured its investment portfolio by exchanging shares with Chinese battery firm EVE Energy, resulting in SK On acquiring full ownership of its Jiangsu-based joint venture SKOJ and divesting its entire stake in the Guangdong-based EUE factory. This move aims to enhance operational efficiency amid challenges in the EV market.

CMC, a Yulon Group subsidiary, detailed its 2026 product and market roadmaps during an online investor briefing on November 20, outlining new model launches and deeper strategic partnerships. Executive vice president Ching-wu Chien confirmed that Mitsubishi's next-generation XForce SUV will make its official Taiwan debut at the 2026 Taipei Auto Show, which runs from December 31, 2025, to January 4, 2026.

Electric vehicles continued to dominate Hon Hai Tech Day (HHTD25) this year, with Foxconn unveiling a fully realized version of its Model A concept and framing the project around the idea of "From Japan for Japan."

The Dutch government recently suspended its administrative order against Nexperia and returned control of the chipmaker to its Chinese parent company, Wingtech Technology. While the move has softened diplomatic friction between the Netherlands and China, the supply-chain turmoil triggered by the dispute continues to ripple outward, forcing European and Japanese automakers to cut production.

On the opening day of Hon Hai Tech Day, Foxconn introduced a new reference EV, the Model A—its most concentrated focused push yet to tailor electric vehicles for specific industries and use cases. Jun Seki, chief strategy officer for the company's electric-vehicle business, unveiled three distinct versions of the Model A on the main stage, each designed for different commercial and consumer needs. The vehicles combine advanced AI features with a modular component architecture aimed at driving down costs and broadening application scenarios.