On December 11, 2025, Taiwan officially inaugurated its first hydrogen refueling infrastructure with the simultaneous opening of CPC Corporation's Nanzi station in Kaohsiung and Linde LienHwa Group's Shugu demonstration station in Tainan. The milestone signals a new chapter for Taiwan's hydrogen energy supply chain and practical use in transportation.

Hiroca Holdings, a Taiwan-based supplier of automotive interior components, said its new automated coating line in Mexico is on track to begin phased production by the end of 2025, a move that will support rising orders from major American and Japanese automakers operating in North America. Because the Lunar New Year will fall later than usual in 2026, the company does not expect Taiwanese automakers to pull forward year-end inventory builds in December 2025.

Innolux subsidiary CarUX formally completed its acquisition of Japan's Pioneer on December 1, 2025, a deal that is expected to boost CarUX's annual revenue to as much as NT$100 billion (approximately US$3.2 billion). Jim Hung, chairman of Innolux and CarUX, described the transaction as the company's most significant merger since Innolux's own three-way consolidation, adding that the two sides clicked immediately, and that the combined company will enjoy three major synergies and three strategic advantages.

Germany's auto market is expected to hit a critical turning point in its shift to electrification in 2026.

King Shing Industrial is accelerating its shift into AI-enabled mobility systems while strengthening its core automotive aftermarket business in North America. The Taiwan-based motor and cooling system maker said it is expanding into higher value applications, including unmanned aerial vehicles, autonomous logistics vehicles, and robotics, and plans to begin automated motor production in Thailand in the first half of 2026.

Steel bar and wire maker Camellia Metal has steadily grown sales from the automotive sector, increasing the sector's share of revenue from 33% in 2023 to 39% in 2025 despite challenging conditions. The company is actively expanding into the Southeast Asian market with a three-stage plan aimed at competing against established Japanese supply chains.

MediaTek is recalibrating its business strategy by targeting automotive electronics as a next major growth area, following a slowdown in smartphone-related revenue. The company has already embarked on a push into application-specific integrated circuits (ASICs) tied to Google's TPUs, aiming to capture US$1 billion in ASIC revenue by 2026. Now, it forecasts that automotive electronics will emerge as another billion-dollar revenue stream within two to three years.

Passenger vehicle retail sales in China declined by 8% year-over-year in November 2025, the largest drop in nearly a year and the first negative growth period since 2023, according to data from the China Passenger Car Association (CPCA). This downturn signals early signs of a significant industry reshuffle triggered by the withdrawal of longstanding subsidy programs.

Mexico is preparing a major shift in its trade policy, approving broad tariffs on imports from Asian countries without free-trade agreements, including China, India, and South Korea. According to The Economic Times, the Senate passed the bill on December 10, 2025, with 76 votes in favor, 5 against, and 35 abstentions.

The global automotive supply chain is experiencing significant restructuring as the divide between China and other major economies widens. China's intensified efforts to achieve full self-sufficiency in both hardware and software for automotive technology are imposing a new technological barrier that challenges Taiwan's position, particularly in integrated circuit (IC) chip and smart algorithm supply.