Industry sources reveal that US and European automakers, alongside the National Highway Traffic Safety Administration (NHTSA) and other regulators, have yet to agree on redefining Level 3 (L3) autonomous driving standards. In response, automakers are developing modular frameworks for 2029–2031 models, designed for easy adaptation to evolving regulations through a "Lego-like" approach.
Insiders report that regulatory uncertainties have led automakers to focus on modular L2+ designs. These frameworks enable smooth upgrades to L3 through software updates or HPC module integration, pending regulatory approval. Final designs are expected within six months.
The shift from L2+ to L3 is expected to boost Taiwanese supply chain involvement, with firms like Foxconn, Quanta, Pegatron, Wistron, and Inventec leading advancements in driver assistance and autonomous vehicle systems.
Semiconductor progress in domain controllers and vehicle computing, often integrated into smart cockpits, is spearheaded by Nvidia, Qualcomm, Mobileye (Intel), Tesla, MediaTek, and IDMs such as NXP, Renesas, TI, and Infineon. Manufacturing is supported by leading foundries like TSMC, UMC, and Samsung Electronics.
Pressure from China's automotive supply chain has accelerated automakers' design timelines. Plans for 2029–2031 models include significant electrification upgrades and greater integration of Taiwanese suppliers and semiconductor firms.
Tesla and Chinese startups have long pursued L3 vehicles and autonomous taxis, prompting concerns that mainstream automakers may lag in advanced autonomous technology development.
Experts emphasize regional differences in autonomous vehicle adoption. In the US, mainstream automakers focus on passenger vehicles for general consumers. While Tesla advertises L4 capabilities, regulatory standards classify its vehicles as L2.
Autonomous taxis, like those from Alphabet's Waymo and GM's Cruise, require NHTSA approval and are restricted to designated roads. Tesla is reportedly working with Austin officials to debut Texas's first driverless fleet by 2025.
Chinese automakers frequently claim L3 or higher capabilities, but regulations classify these as L2 demonstration projects, holding manufacturers liable for issues. Fully autonomous driving is limited to approved roads, while Tesla's Full Self-Driving (FSD) awaits deployment approval in China.
Article translated by Levi Li
