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Honda And Nissan Aim For Merger By 2026 To Become Third-Largest Global Automaker

by THEFUTURE.TEAM

December 24, 2024

Honda and Nissan have officially entered merger talks with plans to create the world’s third-largest automaker by vehicle sales, following Toyota and Volkswagen. This historic move comes as the Japanese automakers face increasing competition from global players like Tesla and China’s BYD, particularly in the electric vehicle (EV) market.

Key Details Of The Merger:

Merger Goals: The new entity would have combined sales of 30 trillion yen ($191 billion) and an operating profit of over 3 trillion yen, making it a formidable force in the automotive industry. A holding company will be established, with both Honda and Nissan continuing to preserve their individual brands while benefiting from shared resources and synergies.
Board Composition: Honda, with a market capitalization approximately four times that of Nissan, will appoint the majority of the new company’s board members.
Timeline: The companies aim to finalize talks by June 2025, with plans to list the holding company shares in August 2026. The merger would involve the delisting of both companies from the stock exchange.
Mitsubishi Motors: Mitsubishi Motors, in which Nissan holds a significant stake, is also considering joining the new group, with a decision expected by January 2025.

Strategic Motivation Behind The Merger

The move is partly driven by the growing dominance of Chinese EV makers and the need for larger scale to compete in the rapidly evolving automotive landscape. Honda CEO Toshihiro Mibe emphasized that the merger is not a “rescue” for Nissan, but rather a strategic move for both companies to strengthen their competitiveness in the face of technological advancements such as electrification and autonomous driving.

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Nissan has been struggling with financial difficulties, including a significant reduction in its global production capacity and the elimination of 9,000 jobs. The merger talks follow a restructuring plan designed to stabilize the company. Nissan’s CEO, Makoto Uchida, stressed that the merger discussions were not an indication of giving up on its restructuring efforts, but rather an essential step to ensure future growth.

Global Competition

The merger is seen as a necessary response to intense competition from EV giants like Tesla, as well as China’s BYD, which has become a dominant player in the electric vehicle market. As both Honda and Nissan work to secure their future in this highly competitive market, the potential collaboration could provide the scale and resources necessary to develop new technologies and accelerate the transition to electric vehicles.

While the talks are still in the early stages, the merger would be a significant reshaping of the global auto industry, reminiscent of the 2021 merger between Fiat Chrysler Automobiles and PSA Group to create Stellantis. If the merger proceeds, Honda and Nissan could not only regain competitiveness but also position themselves as key players in the future of mobility.

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China’s Strategic Ascent In Domestic AI Chip Manufacturing

by THEFUTURE.TEAM

August 27, 2025

Record Profit Signals Shifting Landscape

China’s drive to develop cutting‐edge artificial intelligence capabilities is taking shape as domestic semiconductor firms vie for a stronger foothold in an industry long dominated by American players. A clear testament to this shift is semiconductor leader Cambricon, which reported a record surge in profit during the first half of the year. With revenue climbing over 4,000% year‐on‐year to 2.88 billion Chinese yuan (approximately $402.7 million) and net profit reaching 1.04 billion yuan, Cambricon is emerging as a formidable contender in the competitive AI chip arena.

Challenging The Nvidia Paradigm

At a time when Nvidia enjoys market dominance—with its revenue figures dwarfing those of its Chinese competitors—local firms are accelerating efforts to secure alternatives for powering the next generation of AI applications. While Nvidia reported $44 billion in revenue for its latest quarterly cycle, Chinese companies like Cambricon are positioning themselves as critical players in a rapidly evolving China-centric supply chain. This movement reflects Beijing’s broader strategy to insulate its technology ecosystem from U.S. policy pressures and potential export control disruptions.

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Strategic Implications And Governmental Controls

The ambition to supplant established American giants is further underscored by recent regulatory and market developments. After facing restrictions—including a notable dispute over the sale of Nvidia’s H20 chip—Chinese enterprises have increasingly turned to local alternatives. Even as Nvidia resumes exports under stringent conditions that require sharing 15% of revenue with the U.S. government, Beijing’s initiative to foster domestic capability continues to garner momentum.

Emerging Trends In Technology And Software

Beyond hardware, Nvidia’s competitive edge has traditionally rested on its robust software ecosystem—a critical component for widespread developer adoption. Acknowledging this gap, Cambricon has announced efforts to enhance its own software offerings while simultaneously working on next-generation hardware solutions. Despite these advances, Chinese competitors must overcome significant technological and regulatory challenges, including export controls that limit access to advanced chipmaking techniques.

The Road Ahead For China’s Ai Chip Industry

The rapid market capitalization growth of Cambricon, now valued at approximately $80 billion, reflects both investor confidence and the strategic importance of securing domestic semiconductor supply chains. As China continues to invest and innovate within the AI domain, the long-term race to challenge entrenched global leaders will depend on striking a balance between independent technology development and the necessity of adapting to international market dynamics.