The long-rumored transfer of Luxgen, the automotive brand under Yulon Motor, to Foxtron Vehicle Technologies—a joint venture between Foxconn and Yulon—was formally confirmed on the evening of December 19. The announcement has drawn intense scrutiny from both financial markets and the manufacturing sector, as its ripple effects across Taiwan's automotive supply chain continue to unfold.

Global automotive sales are likely to edge higher in 2026, returning roughly to pre-pandemic levels, but the industry should not expect a swift or robust recovery, according to Jay Shen, managing director of the Garmin Asia Auto OEM Group. While demand is improving compared with 2025, he said, structural pressures and policy uncertainty will continue to weigh on growth.

The global auto industry is entering an unusual phase of expansion—one driven less by strategic ambition than by the need to survive. China's automakers have unleashed a surge of exports that, at first glance, looks like an aggressive push into overseas markets. Beneath the surface, however, lies a harsher reality: cutthroat competition at home and a deepening structural overcapacity that is leaving many firms with few viable alternatives.

Yageo, the Taiwanese manufacturer of electronic components, stated on Monday that a fire at a neighboring facility near its Dafa No. 3 plant in Kaohsiung did not impact its own operations.

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.