Bloomberg previously reported that China’s Ministry of Industry and Information Technology (MIIT) has instructed EV companies like BYD and Geely to increase the procurement of domestic electronic components and accelerate the adoption of locally produced semiconductor chips. Although there was an informal target for EV companies to increase the share of domestic chips to 20% by 2025, progress has been slow.

Due to weaker-than-expected demand for electric vehicles (EVs), many traditional Tier 1 suppliers in Europe and the US have undergone significant restructuring in recent years.

In his 42 months as CEO of Intel, Pat Gelsinger recently issued an internal memo announcing layoffs, sharply criticizing Intel’s deep-seated issues. He stated that Intel’s “costs are too high, profits too low, and the company is mired in bureaucracy,” emphasizing that this move is necessary to transform Intel into a leaner, simpler, and more agile company.

The US$39 billion funding allocation under the CHIPS and Science Act (CHIPS Act) is nearing completion.