As the EU's General Safety Regulation provisions on driver distraction take effect, direct driver monitoring has become a standard safety technology in one of the world's largest automotive markets. The new rule requires all new cars sold in Europe to be equipped with advanced driver distraction warning (ADDW) systems, making in-cabin cameras and sensors a critical requirement for vehicle safety.

Largan said on July 9, 2026, that shipments of its variable-aperture lens will begin ramping up in the third quarter, and that it has already received formal specifications from a volume customer for co-packaged optics (CPO) shipments, and will send samples this month. The second half of the year is the traditional peak season for the optics industry. Chairman En-Ping Lin said July would be a little better than June, and August would be better than July, adding that third quarter capacity utilization is currently full. Regarding the third quarter gross margin, Lin stressed that the key factor will be yield, as new products continue to roll out.

When the 2026 World Artificial Intelligence Conference (WAIC) opens on July 17, its exhibition halls will double as a statement: China now fields a domestic AI stack running from silicon to agentic devices, at a moment when US export controls are tightening around the country's access to the most advanced foreign chips and models.

Ledlink said its turnaround is strengthening, with losses narrowing in the first quarter of 2026 and growth returning in the second quarter. The shift reflects rising demand in automotive lighting, a trend with implications for global EV, smart-car, and professional lighting supply chains.