In recent years, Chinese companies have significantly increased their investment in automotive semiconductors, aiming to accelerate the development of a domestic supply chain. Yet in key technologies—particularly power semiconductors used in electric vehicle (EV) drivetrains—expertise remains firmly in the hands of European and American integrated device manufacturers (IDMs). These technologies are unlikely to be displaced in the near term.

Texas Instruments' latest commentary during its Q4 2025 earnings call on January 27, 2026, shows a company increasingly shaped by industrial, automotive, and data center demand, even as consumer-facing segments remain uneven. Management framed fourth-quarter results as broadly in line with expectations, while emphasizing that the mix of end markets—not pricing—is driving both near-term performance and longer-term strategy.

Texas Instruments (TI) signaled urgency around capacity planning, stressing that today's capital spending choices will determine its ability to serve demand years ahead, while downplaying fears that rising memory prices are constraining near-term demand across its core markets.

The global bus industry is entering a new phase where competition extends beyond vehicle models to encompass organizational and operational transformation. Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Foxconn Technology Group have announced the establishment of a new, jointly owned bus company, signaling a fundamental restructuring of Fuso's bus business that moves beyond their earlier zero-emission vehicle (ZEV) collaboration, set for August 2025. This marks Foxconn's transformation from parts supplier to vehicle manufacturer—a shift with significant implications for Japan's public transport decarbonization and the broader electric vehicle sector.

A deepening global memory chip shortage is beginning to raise serious concerns within the automotive industry, as surging demand from artificial intelligence (AI) applications increasingly crowds out supply. With software-defined vehicles (SDVs), advanced driver assistance systems (ADAS), and in-vehicle infotainment becoming mainstream, automakers are now facing mounting risks tied to memory availability, pricing, and product design.

Taiwan's automotive market faced caution and subdued consumer demand throughout 2025 due to uncertainties over US tariffs and delayed tax amendments. Market confidence improved late last year with the passage of Article 12-5 of the Commodity Tax Act, which took effect in the fourth quarter of 2025, and progress in Taiwan-US trade negotiations, setting the stage for gradual growth in 2026.

Honda announced on January 26, 2026, that its previously halted Chinese auto factories had gradually resumed production since January 19. The shutdowns were primarily caused by a temporary suspension of shipments from automotive chip supplier Nexperia, which led to critical component shortages, forcing multiple Honda plants to halt operations.

Following GlobalFoundries' acquisition of Synopsys' ARC Processor IP business, MIPS CEO Sameer Wasson is not just integrating a portfolio; he is orchestrating a pivot.

Taiwan has obtained a preferential tariff rate of 15% on automotive parts under the US' Section 232 policy, prompting swift action from domestic suppliers to capitalize on improved market access. Industry leaders have intensified efforts to engage US clients, including launching 24-hour hotlines and traveling to the US to negotiate new contracts.

Taiwan's industrial heavyweights are moving into Japan's commercial vehicle market with a level of ambition and visibility rarely seen before.