OCTOBERASIA BUSINESS OUTLOOK9NEWSROOMTAIWAN SAYS CHINA'S RARE EARTH CURBS WON'T HIT CHIP SECTORFrench auto components major OP Mobility SE (formerly Plastic Omnium) has announced plans to invest $200­300 million in India over the next five years to strengthen its manufacturing and engineering footprint.The move underscores the company's confidence in India's fast-growing automotive sector and aligns with its long-term growth strategy in Asia.The investment will support the doubling of OP Mobility's factories in India from five to ten and the establishment of a new technology and engineering centre. The company, known for producing car exteriors, lighting modules, and fuel systems, currently generates about $250 million in annual revenue from its Indian operations.Key Highlights· OP Mobility to invest $200­300M in India over five years· Plans include doubling factories to 10 and a new tech centre· Focus on EV batteries, hydrogen systems, and auto componentsOP Mobility's client portfolio in India includes leading automakers such as Maruti Suzuki, Hyundai, Kia, Mahindra & Mahindra, Renault-Nissan, Skoda-Volkswagen, and Jaguar Land Rover. The expansion aims to deepen relationships with these OEMs while enabling local innovation.Beyond traditional components, a portion of the investment will also fund advanced battery systems and hydrogen energy storage projects, supporting the transition toward cleaner and smarter mobility solutions.Operating in 28 countries, OP Mobility derives most of its revenue from international markets. This latest investment signals its ambition to make India a key pillar in its global value chain, leveraging the nation's engineering talent, cost efficiency, and rising EV ecosystem. Taiwan's Ministry of Economic Affairs has stated that China's expanded rare earth export controls will have little to no impact on the island's semiconductor industry, a vital pillar of the global technology supply chain.Last week, China added five rare earth elements to its list of restricted exports and increased oversight of chip-related users, sparking renewed concerns about supply chain disruptions.However, Taiwan's ministry clarified that the restricted elements are not used in semiconductor manufacturing, and that the rare earths required for local chip production are sourced primarily from Europe, the US, and Japan.Key Highlights· Taiwan says China's rare earth curbs won't hit its chip sector· Local chipmakers source materials mainly from the US, EU, and Japan· EVs and drones may face limited impact from the new export controlsTaiwan--home to TSMC (Taiwan Semiconductor Manufacturing Company), the world's leading producer of advanced chips--plays a central role in global semiconductor production. Analysts note that Taiwan's diversified sourcing strategy and strong trade ties with Western nations help mitigate the risk of material shortages.While the ministry emphasized minimal risk to the chip industry, it cautioned that China's export curbs could affect other sectors, particularly electric vehicles (EVs), drones, and other industries reliant on high-performance materials.China, for its part, has said the rare earth export restrictions are aimed at controlling materials with potential military applications, underscoring the growing geopolitical tensions surrounding advanced technology supply chains. OP MOBILITY TO INVEST UP TO $300M IN INDIA EXPANSION
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