The annual "360°MOBILITY Mega Shows," a major gathering for the auto parts and mobility industry, opens on the 14th, drawing heightened attention to the growing role of Taiwan's suppliers in next-generation automotive technology. As software-defined vehicles (SDVs) emerge as a central industry direction, the share of automotive semiconductors and software in vehicle development is rising rapidly, according to a DIGITIMES Research report.
The global electric vehicle (EV) industry is undergoing a period of rapid and far-reaching transformation. In a recent report on AI-driven smart vehicles and Taiwan's shift toward higher-value segments in the supply chain, DIGITIMES analyst Jessie Lin noted that China has built a highly integrated EV supply chain cluster. Its vertical integration has not only disrupted Japan's long-standing dominance in battery materials — once estimated at around 80% — but also established strong control across multiple key segments.
According to the report, China now accounts for roughly 70-80% of global battery material production, around 68% of vehicle manufacturing, and approximately 60-70% of charging and subsystem markets. Against this backdrop, Taiwan has been shifting away from scale-driven competition toward niche, high-value segments, with AI emerging as the central driver of its transformation.
Taiwan's strengths in the EV ecosystem are concentrated in power systems and charging infrastructure. Delta Electronics, for example, has built a global footprint in power supply technologies, serving 15 of the world's top 20 automakers and shipping more than 3 million units. Other firms, including Hota Industrial Manufacturing as a supplier to Tesla, and TECO Electric & Machinery in electric bus drivetrains, underscore Taiwan's established role in global supply chains.
In batteries, however, Taiwanese companies remain constrained by scale. Firms such as Foxconn, Formosa Smart Energy, and ProLogium Technology are instead focusing on next-generation solid-state technologies, with applications increasingly targeted at AI data center storage systems and humanoid robotics rather than mass automotive deployment.
The report emphasizes that as vehicles evolve toward electronic/electrical architectures (EEA), AI-driven upgrades are becoming the core axis of Taiwan's industrial transition. Well-established major ICT firms — including the likes of Foxconn, Quanta Computer, Pegatron, and Inventec — are increasingly partnering with global chipmakers such as Nvidia and NXP Semiconductors to bring server-grade computing power into vehicles.
Foxconn is advancing a CDMS model to strengthen its role in vehicle hardware integration, while Quanta is focusing on high-performance computing platforms for autonomous driving systems. This shift is transforming Taiwanese firms from component suppliers into system-level integrators of "self-driving brains" and intelligent cockpit platforms.
In more specialized segments, display and PCB manufacturers are also moving up the value chain. AUO and Innolux have acquired European Tier 1 suppliers such as BHTC and Japan's Pioneer, transitioning from panel makers into smart cockpit system integrators.
Meanwhile, PCB makers, including Tripod Technology and Dynamic Holding, are adapting server-grade HDI and thick copper technologies for automotive applications. Sensor firms such as Whetron and WNC are deploying 4D imaging radar technologies that significantly improve environmental perception by producing point-cloud-like imaging comparable to LiDAR.
Overall, as China's supply chain continues to expand aggressively, Taiwan's smart mobility ecosystem is showing strong resilience. By leveraging capabilities in semiconductors, PCB manufacturing, imaging systems, and system integration, Taiwanese firms are carving out a high-value position in the AI-driven automotive transition. From foundational hardware to advanced computing platforms, the industry is gradually building a comprehensive smart vehicle ecosystem, reinforcing its role as a critical part of the non-China global supply chain.
Article translated by Elaine Chen and edited by Jack Wu
