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Feb 27
China's carmakers embrace outsourcing, reshaping intelligent driving
In the Chinese automotive market, emerging manufacturers such as NIO, Xpeng, Li Auto, and Leapmotor have long been emblematic of the industry's shift toward self-developed intelligent driving technology. Historically, these companies were known for their high degree of in-house innovation in autonomous driving systems. However, as intelligent driving technologies gain broader adoption across China, many of these new players are now increasingly turning to outsourcing partnerships.
Benefiting from the booming demand for testing related to artificial intelligence (AI), CCP Contact Probes, a probe development and manufacturing company, has optimized its product structure and is making strides in the semiconductor and electric vehicle (EV) sectors. Recently, positive news has emerged regarding test sockets and probes, which are expected to penetrate the advanced packaging supply chain for AI chips.
Amid changing trade policies and rising geopolitical tensions, economic ties between Taiwan and Japan are strengthening. Taiwanese companies are eager to deepen their links with the Japanese supply chain, enter the Japanese market, and acquire Japanese firms, although their success varies greatly.
Raydium Semiconductor Corporation's board has approved its 2024 financial report and profit distribution. Full-year consolidated revenue hit NT$24.38 billion (US$743.59 million), the second-highest on record, up 32.9% compared to the previous year. Gross margin improved to 30.0% (+1.1pp year-over-year) while operating profit surged 54.4% to NT$2.13 billion. Net profit after tax climbed 45.5% to NT$2.1 billion.
Garmin, the global leader in GPS navigation and smart wearables, has announced its 2024 financial results, reporting a record-breaking revenue of US$6.3 billion, marking a 20% year-over-year growth. All five of its product divisions reached all-time high revenues.
Tesla has begun rolling out a software update in China, introducing Autopilot driver-assistance features similar to the Full Self-Driving (FSD) system in the US—without explicitly branding it as FSD. The update expands Autopilot's reach into China, a key market where local competitors are advancing autonomous driving technologies.
Global automakers have long sought to dethrone Tesla, with Chinese manufacturers now aggressively targeting its limited model lineup and sluggish innovation. Yet, the cost of this offensive is proving steep, often leading to mounting losses.
Fueled by the surging demand for CMOS Image Sensor (CIS) components in intelligent driving systems and consumer electronics, Will Semiconductor (WillSemi), the company behind OmniVision, has in recent years eclipsed its American and Japanese rivals to emerge as China's dominant supplier of sensor components. Orchestrating this remarkable ascent is the low-profile yet formidable Renrong Yu.
Onsemi has announced a significant restructuring plan in response to the ongoing challenges in the automotive chip market. On February 25, 2025, the company revealed its intention to lay off approximately 2,400 employees, equating to about 9% of its global workforce, as part of its strategy to streamline operations and prioritize core business areas.
As China's automotive market embarks on a new wave of intelligent driving democratization, a fresh tug-of-war has begun between car manufacturers and specialized third-party suppliers. This development threatens to push many of these suppliers to the brink of elimination, with estimates suggesting that only three major players will ultimately remain in the market.
The wave of layoffs sweeping through the global automotive industry shows no sign of slowing, with major international Tier 1 suppliers--Germany's Continental, Bosch, and ZF--bearing the brunt of the downturn.
The global electric vehicle (EV) market is evolving rapidly, and Japan's legacy automakers are at the center of the latest industry shakeup. Following the collapse of the Honda-Nissan partnership, reports suggest that a new "four-party collaboration framework" may be in the works.