China and Taiwan: Competition in Auto Chips

China is accelerating its plans to localize the production of chips destined for the automotive sector, a strategic move to reduce dependence on foreign suppliers and strengthen its own supply chain. This effort is taking place in a context of increasing demand for electric vehicles and advanced driver-assistance systems (ADAS), which require increasingly sophisticated semiconductors.

In parallel, Taiwan is adopting a different strategy, focusing on supplying high-end chips for the automotive market. Taiwanese companies aim to capitalize on their expertise in advanced semiconductor manufacturing to serve automakers that demand the highest performance and reliability.

This competition between China and Taiwan in the auto chip sector could lead to significant changes in the global semiconductor supply landscape, with significant implications for automakers and consumers worldwide.