Kian Sheng, a subsidiary of the Yulon Group, plays a pivotal role in Taiwan's electric bus supply chain. Despite challenges, the company's operations in China achieved notable results in the first three quarters of 2024, fueled by battery box orders for new energy vehicle (NEV) models from Xiaomi and Hongqi, alongside a surge in bus chassis demand driven by tourism recovery.

Heightened US tariff policies are rattling the automotive industry, threatening higher vehicle costs. Industry insiders note that while the US mandates final assembly domestically, sourcing 20,000-30,000 components per vehicle locally is impractical. Tier 1 suppliers, with production hubs in Mexico, remain largely unaffected by policy shifts.

Germany's rapid post-World War II economic growth was driven by advanced industrial technology, a robust workforce, and its globally renowned luxury car brands, which dominated the high-end automotive market for decades. However, recent years have seen this dominance wane, largely due to fierce competition from Chinese electric vehicle (EV) manufacturers. German automakers are losing their competitive edge in global markets.

In recent years, Taiwan-based IC design companies have massively entered the automotive chip sector, seeking growth opportunities beyond consumer electronics. The automotive chip market is particularly appealing due to its higher profit margins and longer product cycles, which are key to strengthening operational foundations.

AI was the name of the game for the semiconductor supply chain in 2024, according to IC distributor WPG Holdings, yet shifting supply-demand balance may lead to slightly slower growth in the semiconductor market next year. In the automotive market, as carmakers gradually end inventory adjustments, WPG is seeing initial results from its investments into integrated automotive solutions, as it targets Japanese Tier 1 suppliers.

Chinese EV giant BYD has unveiled its most advanced self-developed automotive chip, manufactured using a cutting-edge 4nm process. Market rumors reported that the BYD 9000 represents China's most sophisticated automotive chip to date, with manufacturing reportedly handled by TSMC. The chip's striking similarities to one of MediaTek's existing solutions have sparked speculation about a strategic partnership between BYD and MediaTek.

Auto Guangzhou 2024, opening on November 15, stands as China's final flagship auto event of the year. It previews key trends that will shape the 2025 automotive market. With 1,171 new models showcased, including 512 electric vehicles (EVs), the event highlights the surging dominance of China's local EV brands.

SK Group's silicon wafer manufacturer SK Siltron has confirmed that it will receive a loan of US$544 million from the US Department of Energy (DOE) to invest in its silicon carbide (SiC) wafer factory at its US subsidiary, SK Siltron CSS, which is expected to commence production in 2025.

With Donald Trump's return to the White House, Tesla CEO Elon Musk's vocal support during the election campaign is anticipated to provide Tesla with increased regulatory flexibility. Since the November 5 US presidential election, Tesla's market value has risen by over 39%, adding around US$70 billion to Musk's net worth.

China's dominance in automotive electronics and electrification is pushing European, American, Japanese, and South Korean automakers to respond. European brands, in particular, are increasing investments and partnering with Chinese firms—an approach widely interpreted as "if you can't beat them, join them."

Europe's automotive sector is facing sweeping changes, marked by mass layoffs and factory closures, with Germany's top automakers—Volkswagen AG, BMW, and Mercedes-Benz—feeling the greatest impact. As labor unions protest, fearing a jobless wave, the situation reveals a broader labor shortfall in Germany, particularly in the booming semiconductor sector, where former auto workers are snapped up even before formally entering the job market.

Global PMX, an automotive component manufacturer, is strengthening investments in Mexico, despite cautious sentiment across the auto and ICT sectors since President-Elect Trump's first term sparked shifts in global trade policy. As demand for EV components grows, the Taiwanese company sees Mexico as a strategic hub for its global expansion.

Sixxon Tech, a specialized supplier of precision metal parts, anticipates robust growth in thermal management, semiconductor, and optical communication sectors in 2025. The company aims to reduce its reliance on automotive components as it focuses on new markets.

Taiwan's leading precision metal stamping specialist, G-Shank Enterprise, reported that revenue from non-3C applications—such as automotive, medical, and industrial sectors—grew to 56% in the first three quarters of 2024. This diversification fueled both revenue and profit growth for the company, while AI-related applications will serve as the primary growth driver in 2025, according to President Ying-Shou Lin.

Automotive supply chain players are increasingly branching out into non-automotive sectors, notably semiconductors, with companies like Global PMX and TsangYow at the forefront.

For the global automotive industry, Donald Trump's upcoming return to the White House may create greater challenges not for China's emerging automakers but for Germany's leading automotive giants: Volkswagen, Mercedes-Benz, and BMW. These three brands now find themselves in a "perfect storm," navigating pressures from multiple fronts.

Taiwan-based Eikei, a specialist in non-OEM PCBs, is poised for substantial growth in both revenue and profit in 2025, driven by increasing demand for PCBs in automotive, AI, and power supply applications, according to Chairman Corey Liu.

With Donald Trump set to return to the White House, he's pledging a platform of low taxes, high tariffs, strict immigration policies, and opposition to the Green New Deal, raising concerns about economic disruption. Industry experts warn these moves could trigger global economic volatility, particularly affecting manufacturing sectors.

Optical film manufacturer Wah Hong Industrial Corp has reported that its cumulative pre-tax net profit for the third quarter of 2024 reached NT$410 million (approx. US$12.7 million), marking a significant year-over-year growth rate of 70.3% compared to NT$240 million in the same period of 2023.

Toyota's major automotive component suppliers have revised their financial guidance downward for the fiscal year ending in March, according to their latest financial results.

The transition of Europe's automotive industry to electric has encountered challenges in 2024, leading to significant setbacks for European car manufacturers. To date, European automakers have issued seven profit warnings, indicating their failure to accurately assess market trends as the situation grows increasingly beyond their control.

Polarizer manufacturer Cheng Mei Materials Technology (CMMT) has stepped up its deployment in high-value product segments to alleviate the impact of oversupply in the LCD market which has prompted panel makers to shut down some of their fabs.

China's approach to battery exports is firmly grounded in two essential principles: preventing the escalation of economic conflicts and geopolitical tensions, and protecting core technologies from being distributed. Despite tensions with the European Union (EU) and the US, the Chinese government welcomes the expansion of Chinese automakers and supply chains beyond national borders, provided that these conditions are met.

Software-defined vehicles (SDVs) are at the forefront of automotive electronic innovation, and the surge in generative AI further amplifies software's transformative power. Yet, as automotive technology and AI advance, a multitude of software and algorithms flood the field, prompting a fundamental question: which software genuinely defines and shapes the hardware's core?

Taiwan-based AutoSys, which specializes in algorithms for automotive 360-degree surround image detection and ADAS sensing system fusion, has penetrated the supply chains of the US and Japanese automotive markets.