As the United States transitions its presidency, the technology war against China’s semiconductor industry shows no signs of slowing down in 2025. According to The Wall Street Journal, domestically produced chips now account for 15% of those used in Chinese automobiles—a significant step toward securing a stable supply chain, as reported by Commercial Daily News on January 3.
China is intensifying efforts to reduce its reliance on foreign chips, implementing a new policy that requires automakers to use up to 25% locally produced chips by 2025. This policy highlights the government’s determination to eliminate foreign dominance in the automotive chip supply chain in the near future.
Meanwhile, the Market Intelligence & Consulting Institute (MIC) forecasts significant growth in the global electric vehicle (EV) market, projecting 19.03 million units in 2025, up 13.7% from 2024. Although EV market expansion slowed in 2024 due to trade protectionism and reduced subsidies, China's dominance remains, accounting for 60% of global EV sales from 2019 to 2023, MIC noted.