Automotive electronics and lifestyle technology systems provider Yen Sun Technology anticipates growth momentum will come from high-end networking IT demand in 2025, driven by the widespread adoption of AI applications due to the emergence of China's DeepSeek.

CDIL Semiconductors and Infineon Technologies have signed a Memorandum of Understanding (MoU) to collaborate on power semiconductor solutions tailored to India's growing needs in e-mobility, renewable energy, and energy-efficient appliances. This partnership aims to enhance India's semiconductor capabilities and integrate cost-effective, locally produced solutions into the global supply chain.

China's automotive industry is facing a critical shortage of 8-megapixel (8MP) automotive CMOS image sensors (CIS) as automakers shift toward centralized computing architectures. Instead of processing visual data at the edge, Chinese manufacturers are consolidating it within the vehicle's central processing unit (CPU), fueling a surge in demand for high-resolution CIS.

BYD, China's automotive giant, has recently taken the lead in the race for intelligent driving equality, triggering a nationwide push among car manufacturers to accelerate the adoption of smarter, more autonomous vehicles. The rise of Deepseek, a promising new player in the field, appears poised to significantly impact China's intelligent driving sector, potentially reshaping the future of the industry.

Despite a resurgence in demand for various applications, the demand for automotive processors remains flat. Although a few chip companies are still experiencing growth due to new technology products or recently entering the supply chain, there is currently no noticeable recovery among major integrated device manufacturers (IDMs) and IC design firms in Europe and the United States.

Backed by state subsidies and a self-sufficient supply chain, China is ramping up SiC substrate and mature process chip production at an unprecedented pace. The expansion is fueling fears of a global oversupply and intensifying price competition for industry leaders like Rohm Semiconductor and Wolfspeed.

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.

Taiwan's electric vehicle (EV) market is experiencing robust growth, prompting automakers to introduce new models in 2025. Among them, Volvo just launched its next-generation fully electric EX30 compact SUV in Taiwan on February 26. Equipped with Qualcomm's Snapdragon Auto 8155, the EX30 underscores the increasing importance of smart cockpit technology as a key differentiator in the EV sector.

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.

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.

Following BYD's debut of its "God's Eye" intelligent driving system, the already limited supply of 8-megapixel (8M) automotive CMOS image sensors (CIS) has quickly become a shortage, according to industry sources in China.

HiSilicon is keen to grow its chip business beyond mobile phones and computing to the automotive industry, according to industry sources in China. During a recent summit for private entrepreneurs organized by the Chinese government, Huawei founder Zhengfei Ren's remarks about launching "Backup Plan 2.0" have drawn renewed attention.

According to Infineon's press release, the company is advancing its 8-inch silicon carbide (SiC) technology, having released its first products in the first quarter of 2025. These products, produced in Villach, Austria, will offer premium SiC power solutions for high-voltage applications such as renewable energy systems, trains, and electric vehicles.

Leading silicon carbide (SiC) manufacturers, including STMicroelectronics, Onsemi, Infineon Technologies, and Wolfspeed, posted dismal financial results, fueling concerns that the SiC boom may be waning. The downturn is largely tied to turbulence in the EV and solar inverter sectors, particularly in China, where intensifying price wars are forcing cost cuts across the supply chain.

With smart reading lights and starlight roof features gradually expanding from high-end to mainstream vehicle models, Shining Victory Motor Electronic (Shining Victory) remains optimistic about sustained market growth in 2025. The company aims for high double-digit revenue growth while also targeting double-digit profit increases.

Europe's industrial control and automotive sectors remain sluggish, with weak demand and excess inventory likely delaying recovery until the second quarter of 2025, according to IDMs and IC distributors. Recovery remains uncertain, with global macroeconomic conditions and potential trade policies under Donald Trump adding further volatility.

The proposed merger between Honda and Nissan has reached an impasse, while Renault is preparing to reduce its 36% ownership in Nissan. This development has sparked speculation about potential new investors, notably Apple and Foxconn.

In its latest earnings call, China's leading pure-play foundry, SMIC, acknowledged an increase in domestic competition, resulting in a growing supply even as demand begins to recover. The company is aiming to capture a larger share of revenue from the automotive sector, driven by the heightened competitiveness among Chinese automakers.

Onsemi reported fourth-quarter revenue declined 15% year over year to US$1.72 billion, missing expectations. With lower margins and a weak first-quarter forecast, analysts express concerns about the automotive sector, pointing to a disappointing outlook and elevated inventories.

According to reports from Asahi Shimbun and Reuters, Nissan CEO Makoto Uchida visited Honda's headquarters on the morning of February 6 and informed President Toshihiro Mibe of his decision to cancel the integration talks. Honda had proposed acquiring Nissan as a subsidiary, but as this proposal was not included in the memorandum of understanding (MOU) signed in December 2024, Nissan concluded that the discussions under this plan could not move forward.

As new US tariffs take effect and trigger retaliatory measures, automotive component suppliers face mounting challenges that could threaten their very survival.

In a semiconductor industry that's been struggling with an oversupply of chips and weak demand, Infineon Technologies AG navigated its way through the turbulence and offered some hope for the future. At least for now.

China's automotive chip industry is gaining momentum in 2025, driven by both external pressures and internal opportunities. In response to US restrictions, Chinese automakers are intensifying their self-developed chip production efforts, demonstrating a strategic shift toward technological independence.

NXP Semiconductors reported a 9% revenue decline in the fourth quarter of 2024 to US$3.11 billion amid pricing pressures and increased competition. With conservative guidance for the first quarter of 2025, industry analysts note that while automotive demand remains stable, weakness in other sectors highlights broader economic challenges, particularly in Europe.