TAIPEI (Taiwan News) — Taiwanese companies may benefit from expected rules that would bar nearly all Chinese cars and trucks from entering the US market.
Following the announcement of stricter AI chip export controls on Monday, the US is preparing to ban the import of Chinese-made automotive software and hardware, per Commercial Times. This will pose significant challenges for Chinese firms in advanced driver-assistance systems and related sectors.
It may, however, provide Taiwanese firms with opportunities to capture market share in ADAS imaging processors and sensor modules, including companies like Sunplus Technology and Tong Hsing Electronic Industries. Companies specializing in IP for smart driving, such as high-speed transmission interfaces like MIPI A-PHY, are well-positioned to benefit, including Taiwanese players like Egis Technology and M31 Technology.
In addition, in the automotive components sector, companies such as Delta Electronics, Hu Lane, lens manufacturers Largan Precision and Asia Optical, as well as LiDAR (automotive light detection and ranging) producers WIN Semiconductors and Advanced Wireless Semiconductor Company, are expected to benefit.
According to Reuters, US Commerce Secretary Gina Raimondo recently hinted that the new regulations on internet-connected vehicles and components could be finalized as early as this week. The ban would target automotive software and hardware imports from China and Russia to safeguard national security.
The US Bureau of Industry and Security Tuesday released a Notice of Proposed Rulemaking on Sept. 23, following a supply chain review of information and communications technology and services in internet-connected vehicles made in China and Russia. The rules identify these technologies as serious threats and outline a phased implementation of the ban on software and hardware.
The NPRM stipulates the US will prohibit importing or selling internet-connected vehicle systems designed, developed, manufactured, or supplied by entities linked to China or Russia. This includes vehicle connectivity systems with Bluetooth, satellite, and wireless capabilities, as well as autonomous driving systems requiring minimal or no human intervention.
Citing security concerns, Raimondo told Reuters on Jan. 9, “It's really important because we don't want 2 million Chinese cars on the road and then realize ... we have a threat.”
Trump has pledged to block Chinese vehicle imports but has expressed openness to Chinese automakers establishing factories in the US.
The industry expects the software ban to take effect with 2027 vehicle models and the hardware ban with 2029 models. On Monday, the US Commerce Department said it will propose banning Chinese software and hardware in larger commercial vehicles, such as trucks and busses, but the final decision will be made by the Trump administration, per Reuters.
