On July 31, 2025, US President Donald Trump signed an executive order to adjust reciprocal tariff rates, setting the provisional tariff for Taiwan at 20%, effective from August 7, 2025. According to senior government officials in Taiwan, relief measures have been initiated, and affected businesses are urged to apply within the stipulated timeframe. For traditional industries, China faces tariffs exceeding 50% on related goods, which provides Taiwan with a competitive opportunity to gain market recognition.

As artificial intelligence pushes data center power demands to unprecedented levels, Nvidia is leading a power architecture revolution by adopting 800-volt high-voltage direct current (HVDC) systems across its AI servers starting in 2027. Taiwanese component manufacturer Thinking Electronic Industrial Co. sees this shift as a transformative opportunity—particularly in the market for high-wattage power supply units (PSUs) and next-generation precision sensing technologies.

Smartphone shipments by Chinese brands reached 175 million units in the second quarter of 2025 and are estimated to grow quarter-over-quarter in the second half of 2025.

As South Korean battery manufacturers officially launch mass production plans for lithium iron phosphate (LFP) batteries, Chinese battery companies are already prepared to make significant advances in the next-generation sodium-ion battery sector. This development is prompting South Korean firms to tighten their focus and accelerate research and development efforts. Some industry insiders express concern that China’s rapid expansion in the sodium-ion battery market could recreate the previous crisis faced by South Korean LFP battery producers.