Category: 3. Business

A key regulatory measure to safeguard insurers’ solvency is the implementation of a risk-based solvency (RBS) regime. Such a regime is designed to incentivise insurers to hold sufficient capital to cover their risks, enabling them to meet their obligations to policyholders, even in adverse circumstances. Transitioning to an RBS regime represents a significant undertaking, involving comprehensive regulatory reforms, extensive training and capacity-building for both supervisors and industry, effective project planning and continuous engagement with stakeholders.

Many emerging market and developing economies are embarking on this journey, which often spans several years. Against this backdrop, the International Association of Insurance Supervisors (IAIS) published the Guidance on transitioning to a risk-based solvency (RBS) regime to provide a structured roadmap for supervisors and policymakers to establish a robust RBS regime.

What is an RBS regime?

An RBS regime is a regulatory framework that requires insurers to maintain a sufficient level of capital that is proportionate to cover their risk profiles and withstand financial difficulties, supported by a sound corporate governance framework. An RBS regime is composed of three types of key elements:

	Quantitative elements: These elements include valuation methodologies for assets and liabilities, treatment of investments, the calculation of capital requirements, recognition of capital resources and the resulting solvency ratio.
	Qualitative elements: These elements focus on the governance frameworks in insurers, including oversight roles and responsibilities, and governance structures such as the risk management system, internal control system and control functions.
	Reporting and disclosure elements: These elements encompass supervisory reporting and public disclosure requirements of both quantitative and qualitative information.

An RBS regime can take many forms, involving different combinations of these elements and varying in complexity. The final form of an RBS regime will depend on the characteristics of the jurisdiction, such as its economic activity and conditions, the development of financial markets, demographics and culture, the size and sophistication of its insurance sector, and the technical capacity of the supervisor.

Benefits and challenges of transitioning to an RBS regime

Supervisory authorities may choose to transition to an RBS regime for several reasons. Such a framework can enhance the protection of policyholders by providing supervisors with a deeper understanding of insurers’ business models and risk profiles. It also supports the development of insurance markets through proportional application of regulatory requirements based on the size and complexity of insurers, allowing new entrants to gradually meet requirements as they grow. Additionally, an RBS regime contributes to financial stability when insurers hold sufficient capital relative to their risks, enabling early risk identification and mitigation to prevent the build-up of systemic risk. Finally, aligning with international standards and best practices helps position a jurisdiction as an attractive and secure environment for international insurers.

Implementing an RBS regime involves significant challenges. These include high implementation costs, such as IT upgrades, developing actuarial expertise, training and the development of robust data management systems. It also requires cultural shifts within supervisory authorities and the insurance sector, fostering a risk-based mindset and aligning practices with the new regulatory framework. Additionally, supervisors and insurers may need time to adjust their governance and organisational structures.

Key considerations for transition

Transitioning to an RBS regime is a significant step that requires a long-term perspective. The complexity of an RBS regime should align with a jurisdiction’s characteristics. In some cases, other market development initiatives may take priority. The following are key considerations when transitioning to an RBS regime:

• Tailoring to the jurisdictional context – Transition strategies should reflect economic conditions, market maturity, demographic and cultural factors, and the sophistication of the insurance sector and the technical capacity of the supervisor.
• Long-term project planning – Implementing RBS typically spans medium- to long-term horizons. Careful planning, strong governance, transparent timelines, sound project risk assessment and management, and clear communication plans are recommended.
• Implementation approaches – There are multiple ways to structure the implementation of an RBS regime. Jurisdictions may choose a conceptually led approach, where the initial consultation focuses on the objectives and design of the regime, or a legislation-led approach, where the legal framework is established first and technical details are added later. Jurisdictions will also have to decide to adopt a phased approach, where components of the RBS regime are introduced gradually (eg starting with qualitative elements like governance, followed by quantitative requirements), or an approach where all elements are implemented simultaneously.
• Capacity-building – Investment in human resources, particularly actuaries, risk managers and IT professionals, is critical. Supervisors should also build internal expertise to oversee RBS processes effectively.
• Stakeholder engagement – Engaging insurers, government bodies and other stakeholders through consultations, field testing and workshops can provide transparency, buy-in and smooth implementation.

Practical aspects of RBS regime implementation

Implementing an RBS regime begins with careful scoping, securing endorsement from supervisory leaders and governments, and establishing dedicated teams and governance structures to manage the transition. A comprehensive project plan defines rules of conduct, milestones, communication strategies and risk management processes. Key design choices, such as whether to legislate early or later and whether to phase in reforms or adopt a comprehensive rollout, shape the pace of implementation. Stakeholder engagement, particularly with the insurance industry, is critical: insurers contribute data, participate in consultations and support field testing, which validates design decisions and ensures the readiness of systems before full adoption.

The transition often requires legislative reforms across multiple policy domains and a cultural shift among supervisors and insurers towards proactive, risk-based thinking. Jurisdictional experiences show that implementation generally takes five to 10 years or more, with success depending on sustained political support, transparent communication and a pragmatic balance between ambition and market realities.

Technical aspects of RBS regime implementation

The technical foundation of an RBS regime lies in building a coherent solvency framework that balances international standards with local realities. Central to this is the total balance sheet approach, which requires supervisors to specify valuation approaches, define qualifying capital resources and establish capital requirements anchored in prescribed and minimum capital requirement control levels to ensure adequate policyholder protection. These quantitative rules are complemented by qualitative requirements, such as governance, enterprise risk management and own risk and solvency assessment, that enable insurers to identify, measure and manage risks effectively. Disclosure requirements further enhance transparency and promote market discipline.

Technical design involves key decisions, including whether to base valuation on financial reporting standards, like International Financial Reporting Standard 17 – Insurance Contracts, or develop bespoke solvency balance sheets; how to calibrate capital charges for insurance, market, credit and operational risks; and how to aggregate them consistently. Proportionality is critical, particularly for emerging market economies, where simplified approaches, phased calibration and transition periods may be necessary to maintain credibility without undermining market growth.

Hi everyone! This is Lauly, waving hello from Taipei, where we have finally welcomed the arrival of winter. November has passed faster than I expected, as I spent quite some time working on several stories about Foxconn, a key Nvidia and Apple supplier and the world’s biggest contract electronics maker.

I made a short trip to Tokyo at the beginning of this month, conducting an exclusive interview with Foxconn chair Young Liu when he attended Nikkei Forum’s Global Management Dialogue. The interview was even more fruitful than I anticipated. The conversation was natural and smooth, and Liu was frank about sharing Foxconn’s plans in Japan and the US. He also patiently explained his definitions of different levels of robotics used in smart factories.

Leading the contract electronics manufacturing giant since mid-2019, Liu’s personality and management style are very different from his predecessor Terry Gou, Foxconn’s founder and former chair, according to industry analysts and former and current Foxconn employees I spoke with. Reporters like me can also feel a difference. For starters, Liu always greets the media with a big smile, no matter what the occasion. Some other reporters who have covered the company for years describe him as Foxconn’s “underground chief marketing officer”, a characterisation which I don’t disagree with.

Foxconn’s annual tech day was another highlight this month, showcasing a wide variety of the company’s latest technologies, ranging from electric vehicles and semiconductors to smart city solutions and humanoid robots. Of course Nvidia’s latest GB300 NVL72 server system was also highlighted.

It was an exciting event, though If I had to nitpick about one thing, it would have been better not to hear the Foxconn theme song (which was made and produced after Liu became chair) for hours on end. The song itself is nice, but I had the tune stuck in my head for the whole night after I left the venue.

On a different note, thanks to my colleague Annie Cheng Ting-Fang, I had the opportunity to join her exclusive interview with former Intel CEO Pat Gelsinger, who is now a general partner of venture capital Playground Global.

It was an insightful interview that I enjoyed a lot. Gelsinger touched on many topics from the outlook for AI and the tech ecosystems in Taiwan and Japan to the rebirth of the chipmaking industry in the US.

Intel was also caught up in another big story recently: TSMC filed a lawsuit against Lo Wei-jen, a former executive, over suspicions he leaked sensitive information to Intel, which is also an important client to the Taiwanese company. The lawsuit came a week after Taiwan’s prosecutors launched an investigation against the former executive for possible violations of the national security law. In response, Intel said it stands by its decision to hire Lo and said it had no reason to believe the allegations of trade secret thefts.

It is rare for the world’s two top chipmakers to be caught in such a public disagreement — TSMC even filed a statement on its strongly worded lawsuit with the Taiwan Stock Exchange. It is worth continuing to monitor how the situation develops, as it may have layers of implications for the global tech industry, national security and geopolitics.

Please contribute to our New Year’s survey! We want to know your thoughts on what’s ahead for Asia in 2026 for an upcoming “Big in Asia” feature. The survey will be open until December 8.

Chattanooga challenger

Australia-founded Novonix is building what it says will be North America’s first large-scale production facility for synthetic graphite in Chattanooga, Tennessee, part of a broader US attempt to break China’s dominance in critical materials, Nikkei Asia’s Pak Yiu writes.

Graphite is a crucial ingredient in making batteries used in a wide range of applications like electric vehicles and energy storage systems. It was identified as a strategic resource and a supply chain vulnerability in former US President Joe Biden’s supply chain review report in 2021 due to China’s massive market share in the material.

More than 85 per cent of the world’s supply of graphite came from China last year, according to the International Energy Agency. China’s market share for battery-grade graphite was 96 per cent, while Japan produces just over 2 per cent.

Opening up a lead

This year for the first time, China has overtaken the US in the global market for “open” artificial intelligence models, gaining a crucial edge over how the powerful technology is used around the world, writes the Financial Times’ Melissa Heikkilä.

New data from open source AI start-up Hugging Face and the Massachusetts Institute of Technology shows a big shift in the concentration of power in AI. The total share of downloads of new Chinese-made open models rose to 17 per cent in the past year. The figure surpasses the 15.8 per cent share of downloads from American developers such as Google, Meta and OpenAI.

Open models — which are free to download, modify and integrate by developers — make it easier for start-ups to create products and researchers to improve them.

While US labs have moved towards closed models in the race to build the cutting-edge technology, China has pushed to release open systems that can be adopted widely by the broader AI community. Experts say widespread adoption of China’s open models could have huge consequences for what the future of AI looks like.

A new direction

You probably know Jensen Huang is the chair and CEO of Nvidia, the world’s most valuable AI chip developer, but do you know who leads the company that makes Nvidia’s AI server systems? Meet Young Liu, the man who orchestrated Foxconn’s pivot from making iPhones to AI servers.

Liu took over as chair of the world’s largest contract electronics maker from founder Terry Gou in 2019. It was a rather challenging time for the Taiwanese company, writes Nikkei Asia’s Lauly Li. Foxconn was highly reliant on smartphones, on production in China and on Apple, its biggest client. At the same time, it was walking a tightrope between Washington and Beijing.

In just six years, Liu has steered the manufacturing empire — which is China’s largest private employer, with close to 1mn staff and contract workers — to diversify its production footprint and strengthen its position in the AI supply chain. He has also made the company less reliant on a single top decision maker, fended off enormous pressure from competitors and navigated geopolitical uncertainties and the Covid pandemic.

The company’s share price has tripled since Liu took over, surging in particular over the last three years as he reoriented Foxconn towards AI technologies and aligned the company closely with chipmaker Nvidia.

A rapid roadmap

Rapidus, Japan’s fast-rising homegrown contract chipmaker, plans to start building its second plant in 2027 and aims to produce 1.4-nanometre chips as early as 2029 in a race to narrow the gap with Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker, write Nikkei’s Ryo Mukano and Hajime Tsukada.

The Japanese chipmaker successfully began pilot production of its 2-nm chips in Hokkaido this summer, marking a milestone since breaking ground on the plant in 2023.

Rapidus plans to begin mass production of 2-nm chips in 2027 as it moves ahead with construction of the second plant, which could also produce 1-nm chips in addition to 1.4-nm products.

TSMC, Intel of the US, Samsung of South Korea and Rapidus are the only companies in the world pursuing such cutting-edge chip production technologies. China’s pace has slowed due to Washington’s export controls that limit its ability to access critical chipmaking equipment and materials.

The Rapidus project is estimated to cost several trillion yen. The Japanese government will invest hundreds of billions of yen in the company, part of which will be used for research and development.

Suggested reads

1. SoftBank issues cumulative $64bn in retail bonds to power AI ambitions (Nikkei Asia)

2. VW says it can halve EV development costs with ‘Made in China’ car (FT)

3. WeRide CEO bullish on growth beyond China and outpacing self-driving rivals (Nikkei Asia)

4. TSMC sues former top executive who joined US rival Intel (FT)

5. Foxconn subsidiary aims to double Vietnam revenue on AI boom in 2026 (Nikkei Asia)

6. South Korea’s homegrown rocket makes 3rd successful launch (Nikkei Asia)

7. Donald Trump and Xi Jinping hold first call since trade truce (FT)

8. Alibaba’s overseas business unit makes profit for the first time (Nikkei Asia)

9. EU to tighten investment rules to stand up to China (FT)

10. Taiwan minister says US will not put ‘punishing’ tariffs on chip sector (FT)

#techAsia is co-ordinated by Nikkei Asia’s Katherine Creel in Tokyo, with assistance from the FT tech desk in London. 

Sign up here at Nikkei Asia to receive #techAsia each week. The editorial team can be reached at techasia@nex.nikkei.co.jp

MANILA, Philippines — Asian shares rose on Thursday, taking their cue from Wall Street, where a winning streak extended to a fourth straight day.

U.S. futures were nearly unchanged while oil prices declined.

Japan’s Nikkei 225 added 1% to 50,069.33 as investors bet that the Federal Reserve will cut interest rates at its Dec. 10 meeting.

The Japanese government also reportedly plans to issue 11 trillion yen ($70.5 billion) in new bonds to fund its economic package. Tech-related stocks advanced, with SoftBank Group jumping 2.8% and Kioxia Holdings up 5.7% following a nearly 15% rout the day before.

In Chinese markets, Hong Kong’s Hang Seng index picked up 0.3% to 25,927.96, while the Shanghai Composite index edged 0.1% higher, to 3,883.01.

Gains were tempered by data that showed profits for the first ten months of 2025 at major Chinese industrial firms rose a lackluster 1.9% year-on-year, down from 3.2% growth in the previous period.

In South Korea, the Kospi added 0.7% to 3,986.54 after the Bank of Korea also kept its policy rate unchanged at 2.5%, supporting financial stability amid a weakened currency and market concerns on rising housing prices.

Australia’s S&P/ASX 200 rose less than 0.1% to 8,610.50 while Taiwan’s tech-heavy Taiex index added 0.2%.

On Wednesday, U.S. stocks closed broadly higher, with the S&P 500 gaining 0.7% to 6,812.61. The Dow Jones Industrial Average gained 0.7% to 47,427.12, and the Nasdaq composite added 0.8% to 23,214.69.

Stocks have been rallying as comments from Federal Reserve officials have given traders more confidence the central bank will again cut interest rates at its meeting in December. Traders are betting on a nearly 83% probability that the Fed will cut next month, according to data from CME Group.

Solid gains for technology companies led the rally, though most sectors in the benchmark S&P 500 index finished higher. Gainers also outnumbered decliners by more than 2 to 1 on the New York Stock Exchange.

U.S. markets have a shortened trading week due to the Thanksgiving holiday, closing on Thursday and opening for shorter hours on Friday.

The market’s recent rebound, fueled by investor hopes for another Federal Reserve interest rate cut in December, has helped erase most of the major indexes’ losses following a bout of selling earlier this month.

Dell Technologies climbed 5.8% after saying it has received record orders for its artificial intelligence servers. Dell and other technology companies had fallen earlier in the month as investors worried the prices for their stocks had gotten too frothy amid the frenzy over AI. Nvidia, the market’s most valuable company, rose 1.4%.

Microsoft gained 1.8% and Broadcom added 3.3%.

Financial sector stocks also helped lift the market. Robinhood Markets jumped 10.9% for the biggest gain among S&P 500 companies after the trading platform said it plans to roll out a futures and derivatives exchange next year to expand its predictions market business.

Urban Outfitters joined a host of other retailers this week in reporting earnings that exceeded Wall Street forecasts, and its shares jumped 13.5%.

In the bond market, the yield on the 10-year Treasury slipped to 3.99% and the yield on the 2-year Treasury rose to 3.48%.

In other dealings early Thursday, U.S. benchmark crude shed 28 cents to $58.37 per barrel. Brent crude, the international standard lost 33 cents to $61.84 per barrel.

The U.S. dollar slipped to 156.14 Japanese yen from 156.40. The euro rose to $1.1609 from $1.1601.

___ AP Business Writer Alex Veiga contributed.

November 27, 2025

TDK Corporation (TSE:6762, hereinafter “TDK”) has signed a basic agreement with NIPPON CHEMICAL INDUSTRIAL CO.,LTD. (President: Hirota Tanahashi, hereinafter “NIPPON CHEMICAL INDUSTRIAL”) to begin considering the establishment of joint venture related to the development of electronic component materials and manufacturing processes. This includes ceramic materials for multilayer ceramic capacitors (MLCCs), which both companies manufacture.

Since its founding, NIPPON CHEMICAL INDUSTRIAL has a history of over 130 years and has been stably manufacturing and selling a wide range of products, with inorganic chemicals as its main focus, as well as electronic materials and organic chemicals.

For over 90 years, TDK has shaped the world from within; from the pioneering ferrite cores to powering the digital age with advanced components, sensors, and batteries, leading the way towards a more sustainable future.

By combining the technological capabilities and development and evaluation expertise of TDK and NIPPON CHEMICAL INDUSTRIAL, both companies aim to accelerate the speed of research and development, shorten the lead time from prototyping and evaluation to market launch, and establish a scheme that can quickly respond to customer needs.

Both companies will proceed with discussions toward the establishment of joint venture based on this basic agreement.

About NIPPON CHEMICAL INDUSTRIAL CO., LTD.

Nippon Chemical Industrial Co., Ltd., (head office located in Tokyo) is a chemical manufacturer that has contributed to social development through the manufacturing and development of chemical products since its founding in 1893. With a history spanning over 130 years, it focuses on the harmony between people and the natural environment based on its company philosophy of “We are treating humanity treasuring technology with good care” and it is aiming to realize dreams with the unlimited potential of chemistry.
Since it was founded, Nippon Chemical Industrial has focused on reducing excessive import dependency by utilizing resources in Japan with a slogan of domestic production of chemical products. Following the war, the company developed fused phosphate (Phosphate fertilizer) and calcium-silicate fertilizer in order to alleviate food crises caused by shortages of materials and fertilizer, which has contributed to society. For over 100 years, the company has refined fundamental technologies of inorganic chemistry centered on phosphorus and chromium products, evolving them into high-value-added functional materials. Over the past 50 years in particular, it has developed barium titanate and phosphine derivatives that are used for electronic materials, both of which serve as key products that support its current businesses. Such technological innovation has contributed to the development of today’s digital society and laid the foundation for a sustainable future.
The company’s cutting-edge chemical technologies are used in a variety of fields, including food, energy, semiconductors, and electronic components, supporting our daily lives and industries. Moreover, it values its creeds of sincerity, responsibility, creation, and challenge, and is engaging in the development of new products and solutions to resolve social issues while deepening its core technologies.
Its consolidated sales for the fiscal year ending March 2025 are approximately 38.8 billion yen, and the total number of employees (consolidated) is approximately 732.

About TDK Corporation

TDK Corporation (TSE:6762) is a global technology company and innovation leader in the electronics industry, based in Tokyo, Japan. With the tagline “In Everything, Better” TDK aims to realize a better future across all aspects of life, industry, and society. For over 90 years, TDK has shaped the world from within; from the pioneering ferrite cores to cassette tapes that defined an era, to powering the digital age with advanced components, sensors, and batteries, leading the way towards a more sustainable future. United by TDK Venture Spirit, a start-up mentality built on visions, courage and mutual trust, TDK’s passionate team members around the globe pursue better—for ourselves, customers, partners, and the world. Today, the state-of-the-art technologies of TDK are in everything, from industrial applications, energy systems, electric vehicles, to smartphones and gaming, at the core of modern life. TDK’s comprehensive, innovative-driven portfolio includes cutting-edge passive components, sensors and sensor systems, power supplies, lithium-ion and solid-state batteries, magnetic heads, AI and enterprise software solutions, and more—featuring numerous market-leading products. These are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics, TDK-Lambda, TDK SensEI, and ATL. Positioning the AI ecosystem as a key strategic area, TDK leverages its global network across the automotive, information and communication technology, and industrial equipment sectors to expand its business in a wide range of fields. In fiscal 2025, TDK posted total sales of USD 14.4 billion and employed about 105,000 people worldwide.

Bengaluru, November 27, 2025: If there’s one thing modern
life rarely gives us, it’s space — space to pause, space to think, space to be
ourselves, and space to be with the people who matter. Today, Mahindra brings
that feeling back with something refreshingly meaningful: the XEV 9S, India’s
first authentic electric origin 7-seater SUV built ground-up on the INGLO
architecture.

The XEV 9S arrives as India’s Big New Electric — a bold idea
crafted into an intelligently spacious SUV for people whose lives, dreams, and
daily journeys are getting bigger. It’s designed for families, creators,
travellers, and everyday Indians who want one simple thing from their car:

space for everything they want to do and everything they want to be.

Powered by MAIA, India’s fastest automotive mind, and shaped with Mahindra’s
expressive design philosophy, the XEV 9S doesn’t just introduce a new vehicle
— it introduces a new feeling of electric freedom.

A Big New Electric for Big Lives
With its expansive cabin, clever three-row electric-first layout,
whisper-quiet drive, and an almost magical sense of openness, the XEV 9S gives
families, travellers, creators, and commuters something Indian mobility has
long denied them:
Comfort that isn’t negotiated. Space that isn’t apologised for. Electric
that isn’t small.

R Velusamy, President – Automotive Business, Mahindra & Mahindra Ltd.
and Managing Director, Mahindra Electric Automobile Ltd. said,
“We have always believed that technology is meaningful only when it expands
human possibility. The XEV 9S built on the INGLO electric origin platform
does exactly that by creatin space – more than anyone else and gives a
smooth and noise free ride . THE MAIA brain enables many of its high tech
features, making it the most advanced offering for its price .”

Nalinikanth Gollagunta, Chief Executive Officer – Automotive Division,
Mahindra & Mahindra Ltd. and Executive Director, Mahindra Electric
Automobile Ltd., said,
“The future of Indian mobility will belong to brands that don’t just
electrify vehicles, but reimagine categories. With the XEV 9S, we’re not
just playing in the EV segment, we’re expanding it. This SUV signals the
start of a BIG new electric era for Mahindra – one built on scale, on
purpose, and on a deep understanding of how India moves. The attractive
prices starting at ₹ 19.95 Lakh make a very high tech product accessible,
with bookings opening on Jan 14 and deliveries start on Jan 23.”

Pratap Bose, Chief Design & Creative Officer – Auto & Farm Sectors,
Mahindra & Mahindra Ltd., said,
“Designing the XEV 9S wasn’t about adding lines to a surface, it was about
shaping a feeling. We wanted it to feel like stepping into a personal
sanctuary, yet one that carries the pulse of modern India. Electric gave us
the canvas; INGLO gave us the freedom to sculpt light, space, and comfort.
The result is an SUV that wears its size with grace and its technology with
humility. It’s expressive, it’s calm, and it’s unmistakably Mahindra – built
for a nation whose aspirations are only getting bigger.”

The New Shape of Space:

The XEV 9S is an expression of Mahindra’s signature Heartcore Design
philosophy. Its athletic stance, clean lines, gloss finish, immersive
tech-rich interiors and carefully balanced proportions scream ‘Premium SUV’
and evoke a sense of purpose and maximum space. The XEV 9S is silent
sophistication on wheels.

Key Highlights:

Important Dates:

Add Your Preference: 14 th December, 2025; Test drives start: 5 th January,
2026 Bookings Open: 14 th January, 2026 and Customer deliveries commencing: 23
rd January, 2026

Social Media Addresses for Mahindra Electric Origin SUVs:

• Brand website: https://www.mahindraelectricsuv.com/
• Instagram: @ mahindraelectricsuvs
• Twitter (X): @mahindraeSUVs
• YouTube: @mahindraelectricsuvs
• Facebook: @mahindraelectricoriginsuvs
• Hashtags: #ScreamElectric #XEV9S #MahindraElectricOriginSUVs