Asian semiconductor firms Holtek and Silicon Motion report significant order growth from European automakers, driven by EV demand and pre-tariff stockpiling, while navigating EU protectionist policies.
Holtek’s microcontroller units for electric vehicles have seen a 50% order spike as European automakers rush to secure supplies ahead of impending U.S. tariffs, while Silicon Motion expands its AI-driven chip solutions for smart factories.
Order Surge in European Automotive Sector
Holtek reported a 50% year-over-year increase in Q2 2024 orders from EU automakers, according to Digitimes (24 June 2024), driven by demand for EV microcontroller units (MCUs). Automotive-grade chip prices rose 12% since March 2024 as manufacturers prioritized supply chain resilience ahead of U.S. tariff hikes scheduled for August 2024.
AI Chips Power Smart Factory Expansion
Silicon Motion’s May 2024 launch of AI inference chips aligns with Germany’s Industry 5.0 initiatives. These chips enable predictive maintenance in smart factories, with Texas Instruments noting an 18% quarterly increase in European industrial chip orders during Q1 2025.
Strategic Responses to Protectionism
The EU Chips Act’s €6.3 billion subsidy package, approved in May 2024, aims to double Europe’s global semiconductor market share by 2030. Asian firms are countering through joint R&D ventures, including Holtek’s partnership with a Munich-based automotive supplier to develop custom MCUs meeting EU sustainability standards.
Historical Context: From Mobile Payments to AI Chips
The current chip expansion echoes Asia’s 2010s mobile payment revolution, where Alipay and WeChat Pay transformed financial ecosystems. Similarly, today’s AI-driven semiconductor strategies aim to create durable technological infrastructure rather than short-term gains. The 2021 global chip shortage demonstrated the risks of fragmented supply chains, pushing current players toward hybrid localization models.
Balancing Growth and Geopolitical Risks
While Q2 2024 inventory levels at Asian suppliers reached record highs—Silicon Motion reported $480 million in stockpiles—analysts warn against repeating 2018’s tariff-driven oversupply crisis. The IMF’s June 2024 report emphasizes diversification beyond automotive sectors, noting that 62% of recent growth stems from this cyclical market.
