In the era of globalization, R&D as well as manufacturing can access capital, land, utilities, and talent locally. However, the deglobalization trend sparked by US President Donald Trump has forced some companies to bring their capital directly to target markets to find sites and recruit personnel, maintaining customer commitments amid new tariff storms. The question arises: will the industrial hollowing out and talent outflow caused by Taiwanese firms moving westward to China years ago repeat itself during the current eastward shift toward the US?

Rohm Semiconductor posted a consolidated net loss of JPY50 billion (US$337 million) for fiscal year 2024 (ending March 2025), its first annual loss in 12 years and the second-largest in its history, according to Yomiuri and Nikkei Asia. The deficit far exceeded Rohm’s earlier projection of a JPY6 billion loss, driven by slumping sales of power semiconductors for electric vehicles (EVs). Revenue fell 4.1% year over year to JPY448.4 billion, with an operating loss of JPY40 billion, a stark reversal from the JPY43.3 billion operating profit in fiscal 2023.

Taiwan’s machinery sector is grappling with severe profit erosion as external trade tensions and rising domestic electricity costs converge. Industry leaders cite US tariffs, currency volatility, and higher electricity rates as key threats to operational stability.

Although the 2025 Shanghai International Auto Show has concluded, its ripple effects continue to shape the automotive landscape. Bolstered by the Chinese government’s early implementation of trade-in subsidies, alongside a confluence of auto show buzz and promotional campaigns, China’s passenger vehicle retail sales soared to 1.81 million units in April 2025, marking the second-highest monthly figure on record.