Valeo, one of the world’s leading automotive component suppliers, recently unveiled the latest innovations from its three core business divisions—Power, Light, and Brain. Among its many advancements, five key technologies stood out, spanning cooling systems, vehicle software, sensing, and communication architectures. Together, they illustrate the automotive industry’s transition toward deeper integration between hardware and software.

The Netherlands-based semiconductor manufacturer Nexperia has recently become entangled in multiple political and regulatory crises. Its parent company, Wingtech Technology, was placed on the U.S. Department of Commerce Entity List at the end of 2024. Subsequently, in September 2025, the U.S. expanded its export control measures, restricting subsidiaries that are more than 50% owned by listed entities from accessing U.S. technologies. Although Nexperia was not directly named, it has nonetheless been affected — with the repercussions rippling across the automotive supply chain.

The European Union’s plan to ban all new internal combustion engine (ICE) vehicle sales from 2035—once seen as a landmark step toward a zero-carbon transport future—has now met fierce opposition from Germany. Following a meeting with auto industry representatives in Berlin, German Chancellor Friedrich Merz publicly declared his intention to push for amendments that would allow carbon-neutral fuels (e-fuels) to remain in use for ICE vehicles. This debate has evolved beyond environmental and energy policy—it now touches the very heart of Europe’s automotive competitiveness and consumer freedom of choice.

At this year’s IAA International Auto Show in Munich, Germany, six exhibition halls were almost entirely occupied by technology companies and startups, with cars themselves seemingly relegated to the background. This arrangement reflects the fact that the automotive industry is gradually transforming into a “mobile technology industry,” where electrical engineering, semiconductors, and display technologies are becoming deeply integrated with vehicles. Two technologies in particular deserve attention: the iBEE motor jointly developed by Valeo and Mahle, and Samsung’s new OLED smart cockpit display concepts.

Motorists often find themselves trapped in traffic during daily commutes or weekend peak hours, resulting not only in wasted time but also in energy consumption and safety risks. Recently, Nissan, through its Advanced Technology Center in Silicon Valley (NATC-SV), partnered with the Contra Costa Transportation Authority (CCTA) and the University of California, Berkeley, to jointly advance the Cooperative Congestion Management (CCM) program. Real-world road testing has been conducted to verify its potential to improve traffic efficiency, enhance fuel economy, and strengthen driver safety.

Amid growing global concerns over supply chain disruptions triggered by China’s restrictions on rare earth exports, Japanese metal manufacturer Proterial (formerly Hitachi Metals) has announced the development of neodymium magnets that do not require the use of heavy rare-earth elements. These magnets, which can be used in electric vehicle (EV) motors, are expected to offer potential cost advantages and a new solution for stable supply in the industry.

Amid escalating geopolitical tensions, China is accelerating its push for self-reliance in automotive chips. According to a report by Nikkei Asia, major Chinese automakers—including SAIC Motor, Changan Automobile, Great Wall Motor, BYD, Li Auto, and Geely—are expected to begin rolling out vehicle models equipped with 100% domestically produced chips starting in 2026. At least two of these companies are already preparing for mass production, signaling a rapid deepening of integration between China’s automotive and semiconductor industries.