Page 39 - EngineerIT August-September 2025

MANUFACTURING TRENDS

Vehicle production and EV penetration Clean tech supply chains
In 2024, China produced 31.3 million vehicles — more than the US, EU and China dominates clean-tech manufacturing.
Japan combined. The transformation is sharper in EVs: nearly half of all It controls 80–90% of solar PV capacity and
cars sold in China last year were electric or hybrid, compared with 15–25% about 65% of wind turbine manufacturing.
in Europe and under 10% in the US. Global EV output hit 17.3 million in 2024, Western markets are scrambling to
with China responsible for 12.4 million — over 70% of the world’s total. incentivise domestic production but remain
reliant on Chinese imports.
Sources:
1. https://think.ing.com/articles/global-car-market-in-slow-lane-china-soars-
Sources:
ahead-west-electrification 1. https://www.woodmac.com/press-releases/
2. https://www.iea.org/reports/global-ev-outlook-2025/trends-in-the-electric-car- china-dominance-on-global-solar-supply-
industry-3 chain
3. https://ourworldindata.org/data-insights/china-is-moving-much-faster-on- 2. https://about.bnef.com/insights/clean-
electric-cars-than-the-eu-or-the-united-states energy/chinese-manufacturers-lead-global-
wind-turbine-installations-bloombergnef-
report-shows

Semiconductors: frontier vs
mature nodes
The semiconductor race is split. Leading-
edge chips remain in the hands of Taiwan,
South Korea and the US. But China is rapidly
expanding in mature-node chips. In 2024 it
held 34% of global mature-node capacity,
second only to Taiwan, and is projected to
overtake by 2027.

Source:
1. https://www.reuters.com/technology/taiwans-
legacy-chip-industry-contemplates-future-
china-eats-into-share-2025-02-10

Trade and industrial policy
Beijing’s manufacturing-first model fuels
a massive surplus. The US and EU have
responded with tariffs, anti-dumping probes
and subsidies. But the structural imbalance
has not closed. Instead, supply chains are
splitting into spheres of influence — China’s
scale versus Western frontier innovation.

Source:
1. https://www.wsj.com/world/china/china-trade-
war-xi-manufacturing-49f81f68

Tension on the rise
The global economy is now defined by this
tension. On one side: China, the industrial
anchor, powering the world’s production
lines. On the other: the West, defending the
frontier with advanced research and high-
value technology. The outcome will shape
markets and the balance of global power in
the decades to come.

And it looks like the West has some catching
up to do.

39 | EngineerIT August/September 2025