“Physical AI”—the fusion of artificial intelligence with machines that move, sense, and act in the real world—emerged as a defining theme at CES 2026, where Chinese robotics companies made a particularly forceful showing. Dozens of humanoid robots were on display, underscoring how quickly China is moving to translate AI advances into physical form.

As electric vehicles and autonomous driving technologies spread rapidly, and as automotive electrical and electronic (E/E) architectures grow more centralized, the value of semiconductors embedded in each vehicle is rising sharply. According to an analysis by DIGITIMES, the average semiconductor content per car is expected to increase from about US$759 in 2024 to US$1,332 by 2030.

China’s rare earth supply chain faced renewed uncertainty after a deadly explosion at a steel plate plant operated by Inner Mongolia Baotou Steel Union, compounding market concerns driven by falling exports and tighter trade controls.

Following the conclusion of the Taiwan-US tariff framework, industry attention centers on how Foxconn (Hon Hai Precision), a leading electronics manufacturer, will recalibrate its operations and strategy. Despite Foxconn’s lack of an official statement, experts note that the company typically maintains a cautious stance on major trade policy changes, awaiting comprehensive details and execution guidelines before announcing its corporate responses.