Japan’s power semiconductor sector, once a global stronghold, is losing ground to fast-rising Chinese rivals as stalled consolidation and mounting financial pressures undermine its competitiveness. Talks between Toshiba and Rohm — two of Japan’s five leading power semiconductor firms — have stalled, highlighting how fragmentation is preventing Japan from countering China’s increasingly aggressive push.

Despite ongoing uncertainty surrounding Taiwan’s import tariffs and excise tax policies, China Motor Corporation (CMC), a subsidiary of the Yulon Group, maintains its full-year sales target of 49,000 vehicles for 2025, including contract manufacturing. Speaking at an online investor conference on August 20, CMC Vice President and Spokesperson Chien Ching-Wu said the company will not revise its capacity plans or its scheduled plant shutdowns.

Taiwanese automaker Yulon Motor Co. held an online investor briefing on August 20, 2025, where General Manager Kuo-Hsing Hsu addressed the impact of tariff uncertainty on the domestic auto industry. Despite mounting pressure, Hsu said Yulon swiftly activated contingency plans and moved to mitigate potential losses early on. The company is now aggressively pursuing new contract manufacturing opportunities, adopting a “lead-and-support” model that integrates local suppliers into multi-model, mixed-line production to enhance the competitiveness of Taiwan-made vehicles.