The automotive industry’s ongoing transition to electronic systems and electrification is creating a “tug-of-war” between new and established Tier-1 suppliers, known for supplying automotive systems and modules directly to carmakers. Among them, Chinese companies, representing the new Tier-1 team, are significantly gaining ground. In contrast, established Tier-1 suppliers from Europe, the US, Japan, and South Korea are battling to defend their positions and avoid slipping in the rankings.

Samsung Electronics’ largest union, the National Samsung Electronics Union (NSEU), initially planned a three-day strike starting on July 8. However, the union recently announced that it will initiate a two-phase indefinite strike starting on July 11, adopting a tough stance against company management.

Concerns are mounting among Western governments and semiconductor companies regarding potential overcapacity in legacy chips, reminiscent of past issues seen in the solar industry. However, before Chinese-made legacy chips flood the market, China-based chipmakers are bracing for intense internal competition that could significantly impact their profitability.

Just 19 of China’s 137 current electric car brands will be profitable by the end of the decade, leaving the rest to exit the industry, consolidate, or battle for a minor market share, according to consultancy Alixpartners.