Kelly leads 52 Republicans in rejecting Chinese auto, battery manufacturing in U.S.


U.S. Rep. Mike Kelly (R-PA) recently led 52 of his Republican colleagues in urging the Trump administration against making any trade decisions that would allow Chinese automotive and battery companies to manufacture their products in the United States.

“The U.S. auto industry is reaching a critical inflection point, as global dynamics and shifts in policy create opportunities for heavily subsidized Chinese automakers to gain momentum using non-market tactics,” wrote Rep. Kelly and the lawmakers in an April 30 letter sent to U.S. Treasury Secretary Scott Bessent, U.S. Commerce Secretary Howard Lutnick, and U.S. Trade Ambassador Jamieson Greer.

“If Chinese automotive companies were granted access to manufacture and sell vehicles and batteries in the U.S., we risk decimating U.S. manufacturing, eroding global market share for U.S. auto companies, and leaving consumers and businesses exposed to serious cybersecurity and surveillance threats,” they wrote. “This is not a winning strategy.”

In their letter, which was sent in advance of President Trump’s meeting with Chinese President Xi Jinping on trade matters between the U.S. and China, the members pointed out that Chinese automotive companies have recently accelerated investment in North America and flooded global markets with the long-term goal of dominating market share and controlling automotive manufacturing and supply chains globally. 

Chinese automakers are also heavily subsidized by the Chinese government, creating an unlevel playing field for American automakers, according to their letter.

“We must be clear-eyed about China’s goals in expanding their automotive footprint across the globe. China’s intent is not fair competition, as evident by their actions in other critical sectors,” the members wrote. “They have drastically inflated supply in their domestic auto market through unfair government subsidies and other benefits intended to artificially prop up companies, forcing them to export and expand to foreign markets at below-market prices. 

“China’s goal is not to compete in the U.S. automotive market, but instead to hollow it out and ultimately limit consumer choice to Chinese brands,” they added. “Allowing Chinese automotive and battery companies to manufacture in the U.S. would jeopardize our national security.”

As negotiations with China continue to develop, wrote the members, they urged the administration to reject any attempts by China to establish vehicle and battery manufacturing facilities stateside or in the broader North American market.

Among the lawmakers who joined Rep. Kelly in signing the letter were U.S. Reps. Carol Miller (R-WV), Michael Rulli (R-OH), Troy Balderson (R-OH), Bob Latta (R-OH), John Joyce (R-PA), Brian Fitzpatrick (R-PA), Kat Cammack (R-FL), Ron Estes (R-KS), Andy Barr (R-KY), John Moolenaar (R-MI), Vern Buchanan (R-FL), Ashley Hinson (R-IA), Erin Houchin (R-IN), Buddy Carter (R-GA), Bill Huizenga (R-MI), Darin LaHood (R-IL), Laurel Lee (R-FL), Blake Moore (R-UT), Kevin Hern (R-OK), Pete Stauber (R-MN), Mike Carey (R-OH), and Rudy Yakym (R-IN).

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FH Capital To Acquire Majority Stake In JinkoSolar’s U.S. Manufacturing Operations


FH Capital announced that it has entered into a definitive agreement to acquire a 75.1% majority stake in Jinko Solar (U.S.) Industries, the U.S. manufacturing subsidiary of JinkoSolar.

Under the agreement, JinkoSolar will retain a 24.9% minority interest in the business. Financial terms of the transaction were not disclosed.

The transaction transfers controlling ownership of JinkoSolar’s U.S.-based 2 gigawatt solar module manufacturing facility along with its growing Battery Energy Storage Systems business.

Following the closing, FH Capital said it plans to invest additional expansion capital to at least double the current solar module manufacturing capacity while also launching domestic BESS manufacturing operations.

According to the companies, the combined platform is intended to address growing U.S. demand for domestically manufactured solar and energy storage products amid evolving clean energy policy initiatives and infrastructure investment trends.

FH Capital is led by Managing Partner Sanjeev Chaurasia, a renewable energy investment banker and investor with more than two decades of industry experience. Chaurasia previously served as Managing Director at Credit Suisse, where he co-founded the firm’s renewable energy practice and led JinkoSolar’s 2010 IPO on the New York Stock Exchange.

JinkoSolar has operated manufacturing operations in the United States for seven years and maintains a global production and sales footprint spanning multiple international markets.

The transaction remains subject to customary closing conditions and regulatory approvals.

Latham & Watkins served as legal counsel to FH Capital. Morgan Stanley Asia acted as financial advisor to JinkoSolar, while Cleary Gottlieb Steen & Hamilton served as legal counsel.

KEY QUOTES:

“The transaction leverages JinkoSolar’s well established seven-year U.S. manufacturing presence, proven technology, and strong relationships with blue-chip U.S. customers, with FH Capital’s capabilities to create and manage a dynamic platform positioned to meet rising demand for domestic solar and storage solutions.”

Sanjeev Chaurasia, Managing Partner, FH Capital

“FH Capital brings deep sector expertise, financing experience, and a deep understanding of the U.S. market.”

“We believe this transaction provides the right ownership, management and strategic direction for this new venture to grow capacity and serve the growing demand for high performance U.S.-sourced renewable energy products.”

Nigel Cockroft, U.S. General Manager, JinkoSolar

 

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Nvidia CEO says AI partnership with Corning will ‘revitalize American manufacturing’


Nvidia CEO Jensen Huang announced a partnership with Corning aimed at revitalizing American manufacturing by expanding domestic optical connectivity manufacturing. The collaboration will create over 3,000 jobs with new facilities in Texas and North Carolina. Huang emphasized the opportunity to rebuild the technology supply chain in the U.S. amid a significant AI infrastructure buildout, highlighting the increasing demand for skilled workers in various sectors. The partnership focuses on enhancing optical technologies essential for AI data centers, marking a pivotal moment for U.S. manufacturing.

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US Apparel Manufacturing Fell 17% in 2025


About $300 million in imports to the United States changed country of origin last year—the likely result of volatile tariff policy perpetuated by the Trump administration. Still, even with all the fluctuations in sourcing patterns, U.S. manufacturing output remained essentially flat.

At the same time, manufactured goods imports increased from around $2.85 trillion in 2024 to around $2.98 trillion in 2025—a 4.6 percent jump, according to Kearney’s latest Reshoring Index.

The primary benefactors of that new business were low-cost Asian countries and regions including China, which collectively saw their imports to the U.S. increase by 6 percent. Apparel and accessories imports from the region totaled $88 billion in 2025.

Despite promises that tariffs on these precise trading partners would deter brands from buying and usher in a renaissance for U.S. producers, onshore manufactured goods output (MGO) actually decreased overall by 0.4 percent, or $28 billion. The numbers were even more stark for the apparel sector, which saw MGO fall by 17 percent.

While 75 percent of respondents to the Reshoring Index survey reported pulling sourcing out of China, their business moved regionally to other low-cost Asian countries rather than moving back home. Just 20 percent said they even considered domestic manufacturing.

According to Patrick Van den Bossche, a partner in management consultant Kearney’s Strategic Operations Practice who authored the 2026 Reshoring Index, there are several reasons that apparel imports continue to outpace the growth of domestic production.

“I think there are a couple of things that are different from other industries. First and foremost, I think it’s probably still one of the industries with the lowest [research and development] budgets out there,” he told Sourcing Journal.

When it comes to innovation, like the automation of processes that are currently executed by hand (or by machines directly controlled by hands), “the speed with which I see that happen in other industries is quite a bit higher,” Van den Bossche said. “And that is required to get some of the expensive labor out.”

Then, there’s the fact that “apparel has always been a low margin industry”—a truth as old as time. “You have a whole bunch of elements here, just from a financial perspective, that make it hard for this industry to go through the kind of changes that would need to happen to make it fit for U.S. manufacturing again.”

Offshore sourcing ecosystems for apparel are also deeply embedded after decades of Asia dominance, Kearney’s research surmised. The entrenchment of those supply chains may have been underestimated by proponents of nearshoring and onshoring, while the impacts of higher tariffs may have been overestimated.

Most Asian and Southeast Asian nations were hit with “reciprocal” tariffs that hovered around 20 percent, but the cost pressures were spread throughout the supply chain, with producers bearing some of the burden. As a result, many brands surmised that paying double-digit duties was more cost effective than shifting production to the U.S.

“I think the way it was done created so much turmoil and so much uncertainty that it made it really difficult for company executives to make decisions,” Van den Bossche said of Washington’s tariff strategy, which, throughout 2025, seemed to change weekly.

“Therefore, they went with the least risky one, which is just do more we’ve been doing,” he said. Companies sourcing from Asia remained in Asia, though they did diversify across a number of markets there.

One CEO who responded to the Reshoring Index survey explained, “Our manufacturing teams are ready to run onto the field, we just need the goal posts to stop moving.”

Van den Bossche believes there’s a chance the shifting of goal posts could stop when the U.S. Trade Representative’s Section 301 investigations into forced labor in supply chains and industrial excess capacity wrap up—the administration’s goal being to reconstitute its now-defunct International Emergency Economic Powers Act (IEEPA) duties.

“We have no clue what that will look like until it’s here, but that could create some level of stability where people go, ‘All right, it’s for real now, and these can’t be challenged or hung up in the Supreme Court, so we can believe that this is a new reality and we can plan for that and execute against it,’” he said. “Or it could be done again in the same wild west manner… and we’re back to nothing but a cloud of dust, where nobody sees where they’re going.”

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Lawmakers warn Chinese auto expansion threatens U.S. manufacturing


Republican lawmakers cite economic, supply chain, and cybersecurity concerns ahead of Trump’s Beijing meeting


House Republicans urge Trump to block Chinese automakers from the U.S., citing manufacturing, supply chain, and security risks.

On the Dash:

  • Potential restrictions on Chinese automakers could reshape future EV competition and pricing in the U.S. market
  • Ongoing trade tensions may create continued uncertainty around sourcing, tariffs, and inventory planning
  • Bipartisan pressure in Washington signals tougher scrutiny of connected vehicle technology and supply chains

Ahead of President Donald Trump’s trip to Beijing next week, dozens of House Republicans are urging the administration to protect the U.S. auto industry from what they describe as unfair Chinese competition and growing national security risks.

In a letter sent to the White House Wednesday, lawmakers warned that allowing Chinese automakers to manufacture or sell vehicles and batteries in the United States could severely damage domestic manufacturing and weaken the country’s economic position.

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“The automotive industry is a foundational piece of the U.S. economy, contributing upwards of 5% of U.S. GDP and generating millions of manufacturing jobs across the country,” the lawmakers wrote. “The U.S. auto industry is reaching a critical inflection point, as global dynamics and shifts in policy create opportunities for heavily subsidized Chinese automakers to gain momentum using non-market tactics.”

The lawmakers argued that expanded Chinese market access could decimate U.S. manufacturing, erode global market share for U.S. auto companies, and leave consumers and businesses exposed to serious cybersecurity and surveillance threats.

The letter arrives as speculation grows that Chinese auto market access could surface during Trump’s upcoming meeting with Chinese President Xi Jinping in Beijing.

Concern over Chinese automakers has intensified across both parties in Washington. Last week, House Democrats sent a letter to the administration warning that the U.S. must not allow the American auto industry to fall into the hands of a strategic competitor intent on achieving global dominance.

Last month, Sens. Chuck Schumer, Elissa Slotkin and Tammy Baldwin also urged the administration to maintain restrictions on Chinese automakers and connected vehicle technologies.

Slotkin has since joined Republican Sen. Bernie Moreno in sponsoring the Connected Vehicle Security Act, legislation designed to permanently ban Chinese connected vehicle hardware and software from entering the U.S. market under existing Commerce Department rules.

The proposed legislation reflects broader concerns about the growing role of connected vehicle technologies and the potential risks posed by foreign-controlled software, data systems, and supply chains.

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Indian Companies Pledge Record $20.5 Billion Investment in US


3 min readMay 7, 2026 08:40 AM IST

Indian companies have pledged to invest a record $20.5 billion in the United States, which includes $19.1 billion in pharmaceuticals, the US embassy said on Wednesday.

The commitments were made during an investment summit in Maryland, US.

According to the US embassy, the commitments span key sectors including pharmaceuticals, advanced manufacturing, energy infrastructure, and emerging technologies, and are expected to create thousands of jobs in both countries while expanding US production and joint innovation capacity.

The US embassy statement quoted Ambassador Sergio Gor saying, “I am proud to advance our goal to double US-India bilateral trade to $500 billion by 2030. Through fair, balanced, and mutually beneficial trade, we’re attracting world-class investment to the United States and creating shared prosperity for both nations.”

It said that a significant share of the investment is driven by India’s pharmaceutical sector, with more than $19.1 billion in planned investments in US manufacturing, research and development, and new facilities.

In addition, 12 Indian companies announced more than $1.1 billion in new greenfield and expansion projects across multiple states, supporting jobs in manufacturing, technology, and engineering.

Pharmaceuticals & industrial capacity

Indian pharmaceutical companies announced plans to invest more than $19.1 billion in the US, anchored by Sun Pharmaceutical’s planned $11.75 billion acquisition of New Jersey-based Organon & Co. Participating companies include Aurobindo Pharma Ltd, Biocon Group, Cipla Ltd, Dr. Reddy’s Laboratories Ltd, Glenmark Pharmaceuticals Ltd, Granules India Ltd, Jubilant Group, Lupin Ltd, Sun Pharmaceutical Industries Ltd, Piramal Pharma Ltd, and Zydus Lifesciences Ltd, the statement said.

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These investments will support manufacturing and network expansions, new greenfield facilities, and increased research and development, helping expand the supply of essential medicines, address drug shortages, and strengthen the resilience of the US healthcare supply chain.

JSW Steel affirmed plans for commissioning $255 million in modernisation projects at its facilities in Ohio and Texas.

Manufacturing

Abhyuday Group (Ahmedabad) will invest over $900 million across five US sites, creating 1,500 American jobs. Jindal Pipe and Jindal Tubular USA (PR Jindal Group) will invest $87 million to expand in Texas and Mississippi, creating 140 jobs. Jivo Wellness (Delhi) will invest $15 million, creating 50 direct jobs and up to 150 indirect jobs.  Polyhose Inc. will invest $2 million in Los Angeles to support the US shipbuilding industry.

Technology, AI, and digital infrastructure

Mumbai-based Sterlite Technologies Ltd will invest $100 million, creating up to 500 jobs and supporting AI and telecom infrastructure.

Techdome Solutions (Indore) will invest $7.5 million, creating 100 jobs.

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Kerala’s RoshAi will invest $5 million in Texas, creating 20 jobs. Chennai’s Atri AI will invest $2 million in Menlo Park, California. Kissflow will invest $2 million in Houston. SatoriXR will invest $1.5 million in Michigan, creating 25 jobs.

Energy, research & innovation

MagnoInnovation Lab (Kerala) will invest $2 million to establish US field operations and support energy sector applications. Indian Institute of Technology Madras Global Research Foundation will invest $4.5 million to establish a US research and collaboration hub in California, with plans for an additional East Coast.

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Shubhajit Roy


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Shubhajit Roy, Diplomatic Editor at The Indian Express, has been a journalist for more than 25 years now. Roy joined The Indian Express in October 2003 and has been reporting on foreign affairs for more than 17 years now. Based in Delhi, he has also led the National government and political bureau at The Indian Express in Delhi — a team of reporters who cover the national government and politics for the newspaper. He has got the Ramnath Goenka Journalism award for Excellence in Journalism ‘2016. He got this award for his coverage of the Holey Bakery attack in Dhaka and its aftermath. He also got the IIMCAA Award for the Journalist of the Year, 2022, (Jury’s special mention) for his coverage of the fall of Kabul in August 2021 — he was one of the few Indian journalists in Kabul and the only mainstream newspaper to have covered the Taliban’s capture of power in mid-August, 2021. … Read More

 

© The Indian Express Pvt Ltd

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STL invests $100M in US manufacturing capacity


India’s Sterlite Technologies Ltd. (STL) is investing up to $100 million to strengthen its manufacturing capacity in the U.S.

Announced at the SelectUSA Investment Summit, the firm is building out capacity as it bids to strengthen its foothold in connectivity solutions, including terminated optical fiber cables, for AI data centers and telecom customers in the U.S.

STL also claimed the investment is expected to create 400-500 jobs.

“By owning the entire value chain, from glass to data center portfolio, we are excited to enable our customers to build the physical foundation for the AI era”, said Rahul Puri, CEO of STL. “This investment will ensure that the infrastructure required to build a strong AI backbone behind global intelligence is scalable and reliable.”

STL recently launched Neuralis, a suite of connectivity products designed for AI-driven data centers. The platform was framed as a comprehensive connectivity foundation for modern data centers, which are increasingly being built around GPU-intensive architectures and AI training environments. The firm described the offering as a “central nervous system” for these facilities, built to support the higher density and bandwidth requirements tied to AI and hyperscale computing.

The company said Neuralis is designed to respond to changing data traffic patterns in modern data centers, with AI workloads driving a surge in east-west traffic, where data flows between servers internally. Neuralis is engineered to support this shift through higher-density, high-speed connectivity.

STL also highlighted its vertically integrated manufacturing model with the release, touting that it manages the entire production lifecycle spanning across glass preform fabrication and fiber drawing, to cabling and final connector assembly.

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WATCH: Vance speaks at a manufacturing facility in key election state Iowa


DES MOINES, Iowa (AP) — Vice President JD Vance, making his first trip to Iowa since taking office, promoted the administration’s tax and tariff policies while framing the GOP as being on the side of working-class voters as he campaigned in the state where Republicans in less than two years will cast the initial votes to pick their party’s next presidential nominee.

Watch Vance’s remarks in the video player above.

Standing before hundreds of supporters at a steel manufacturing facility, Vance repeatedly drew a contrast between Iowa Republican Rep. Zach Nunn and his Democratic challenger, telling the crowd that Nunn and the Trump administration were “fighting for you instead of fighting against you” as he attacked Democrats on issues of immigration and fraud.

READ MORE: What to watch in Tuesday’s elections in Indiana, Ohio and Michigan

“This is not a normal election. This is not a normal political environment,” said Vance, who is seen as one of the GOP’s strongest potential candidates for president in 2028. “This is a contest between a party that wants to take all of your money and give it to illegal aliens and a contest between gentlemen like Zach Nunn who fight every single day for you.”+

Nunn faces a competitive race to keep his Des Moines-area seat in the November midterms. Vance frequently heaped praise on Nunn, calling him “one of those guys who does the right thing, not just when the cameras are on, but when the cameras are off, too.”

The visit to Iowa offered Vance an opportunity to test his reception before Iowa’s voters, whose leadoff caucuses give them an outsize role in determining the next presidential nominee. Campaigning for a local congressman in his role as vice president provided him with a chance to make an impression on Iowa Republicans, seasoned evaluators of those who seek the nation’s highest office, before the campaign begins in earnest.

Vance’s appearance comes days after Texas Sen. Ted Cruz, who is also considered a possible 2028 candidate, spoke to a group of evangelical Christians who are influential in Iowa’s GOP contest.

READ MORE: Trump’s influence tested in Indiana primaries after failed redistricting push

Jimmy Centers, a Des Moines-based Republican political consultant, said that the 2028 contest is “light-years away” but that the Republicans who hear Vance speak on Tuesday will be evaluating how he might measure up in an election for the White House.

“I certainly think, as of right now, Vice President Vance would probably be a straw-poll winner of Iowa Republicans for 2028. But I don’t think anyone is saying, ‘We won’t consider anybody else,'” Centers said.

Vance’s visit comes as higher prices for gas and fertilizer hit Iowans

Vance, who has not said whether he will run for president in 2028, appeared with Nunn at Ex-Guard Industries in Des Moines.

The vice president’s visit follows a trip Trump made in January to tout the administration’s tax cuts, part of a string of stops they’re making this year on economic issues before midterm elections that will determine control of Congress.

READ MORE: Trump’s influence tested in Indiana primaries after failed redistricting push

But Vance’s visit comes when his own political prospects — and the message he delivered on the economy — have been complicated by the war in Iran.

The vice president, who has long been skeptical of foreign military interventions, has seemed a reluctant defender of the 9-week-old war, for which Trump has struggled to find an off-ramp. Iowans, like much of the rest of the country, are grappling with higher gas prices because of the conflict. But the state’s farmers are also feeling the pinch of high fertilizer costs from the war and have been hurt by tariffs Trump has imposed.

Vance made a nod to those cost struggles in his remarks, saying that he’s aware of the rising price of fertilizer and noted: “We got a little blip.” Nonetheless, he said the administration is “working on it.”

While Iowa’s farmers have steadfastly supported the president, they have been looking to the White House for assurances that the current troubles won’t last.

Vance, who met with Iowa Gold Star families just before his public remarks, also became emotional as he discussed the sacrifices made by fallen U.S. soldiers and their families. He talked about wondering how he would react if his 6-year-old son, Vivek, who accompanied him Tuesday, told him later in life that he wanted to enlist, saying he would be “so proud of him” but also “so terrified.”

“Every time that a person gives the ultimate sacrifice to the United States of America … there’s a whole crew of people who love them the same way that we all love every single member of our family,” he said, adding that “part of how we earn that incredible sacrifice” is “by making this country’s politics and government worthy of the people who put on the uniform and will never see their loved ones again.”

Earlier Tuesday, Vance, who represented Ohio in the U.S. Senate before becoming vice president, stopped first in Cincinnati to vote in Ohio’s primary elections and told reporters he was voting for Vivek Ramaswamy in the governor’s race. Asked about U.S. Sen. Jon Husted, who’s running in a special election to serve out the remainder of Vance’s term, Vance said he thinks Husted’s “going to do a great job” and has been “good for Ohio.”

His 6-year-old son, meanwhile, filled out a ballot for children, which the vice president showed to the poll workers when he cast his own ballot. “He voted for the Easter bunny over the tooth fairy,” he said of his son.

Before arriving in Iowa, Vance also appeared in Oklahoma City to hold a fundraiser in his role as finance chair of the Republican National Committee.

It’s ‘awfully, awfully early’ in the road to 2028

Kim Schmett, a longtime Iowa GOP activist, said the presidential cycle starts “deceptively slow.”

He said Trump’s Make America Great Again political movement “is very alive and going here” in Iowa, which would benefit Vance — as well as Secretary of State Marco Rubio, who is also thought to be a potential candidate.

“I think there’s going to be a lot of MAGA support,” he said. “And Vice President Vance and Marco Rubio seem to be the recipients of where that is going at the moment.”

But Schmett cautioned, “It’s awfully, awfully early in the process.”

On the Democratic side, at least half a dozen presidential prospects have been making visits to the states with the earliest presidential primary contests, including recent visits to Iowa by former Transportation Secretary Pete Buttigieg and Michigan U.S. Sen. Elissa Slotkin.

Meanwhile, potential Republican presidential candidates “are treading very lightly,” said GOP strategist Alex Conant, who worked on Rubio’s 2016 presidential campaign.

“I think Republicans are going to be very reluctant to get in Trump’s way until Trump gives the green light for the campaign to start,” Conant said.

That means much of the groundwork to meet with donors or activists or recruit political staffers might happen slowly and subtly – for now.

After the midterms? Conant said: “It’ll be irresistible.”

Associated Press writer Seung Min Kim contributed to this report from Washington.

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Apple event promotes advanced manufacturing for U.S. companies


Apple has brought together hundreds of American manufacturers at Michigan State University for the inaugural Apple Manufacturing Academy Spring Forum. The initiative aims to help U.S. businesses adopt advanced manufacturing techniques and expand opportunities for their workforces and the broader economy. The event reflects Apple’s ongoing commitment to supporting innovation and industrial development in the United States.

Apple CEO Tim Cook has announced other recent initiatives to engage U.S. audiences. Earlier this year, he stated that Apple TV would stream the Formula 1 Miami Grand Prix for American fans. The effort was positioned to increase engagement with sports coverage in the country.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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2026 AI In Manufacturing & Supply Chain Series – New Technology


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Foley & Lardner LLP looks beyond the law to focus on the constantly evolving demands facing our clients and their industries. With over 1,100 lawyers in 24 offices across the United States, Mexico, Europe and Asia, Foley approaches client service by first understanding our clients’ priorities, objectives and challenges. We work hard to understand our clients’ issues and forge long-term relationships with them to help achieve successful outcomes and solve their legal issues through practical business advice and cutting-edge legal insight. Our clients view us as trusted business advisors because we understand that great legal service is only valuable if it is relevant, practical and beneficial to their businesses.


The manufacturing and supply chain sectors face unprecedented transformation as AI-driven technologies like agentic systems, predictive analytics, and digital twins revolutionize operations while simultaneously…


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Welcome to the 2026 AI in Manufacturing & Supply Chain Series, a new initiative where we will help industry participants identify and manage the legal risks and business strategies arising from the profound shifts and innovations reshaping manufacturing and supply chain operations.

The sector stands on the brink of unprecedented transformation—and with it, a new landscape of legal exposure. The momentum toward intelligent, autonomous systems—powered by agentic AI, predictive analytics, digital twins, and real-time IoT integration—is accelerating rapidly. While these technological breakthroughs enable proactive decision-making and dramatic efficiency gains, they also create novel liability risks, regulatory compliance challenges, and contractual complexities that demand careful legal planning. The convergence of AI with legacy systems and connected ecosystems is revolutionizing how factories operate and how supply networks adapt, but it simultaneously exposes organizations to heightened cybersecurity vulnerabilities, data governance obligations, and potential disputes with vendors, customers, and regulators.

The year 2026 presents industry participants with formidable legal challenges alongside exciting operational opportunities. As leaders harness AI to drive predictive maintenance, optimize production, and build resilient supply chains, they must also confront emerging sources of liability—from algorithmic errors and autonomous system failures to data breaches and regulatory non-compliance. The sector continues to navigate evolving regulatory landscapes, including new AI-specific requirements that carry significant penalties for violations. Workforce dynamics are shifting as well, raising labor-law questions around human-AI collaboration and automation-driven displacement. Consumer and stakeholder expectations for transparency, sustainability, and ethical AI practices are intensifying, creating reputational and litigation risks for organizations that fall short. Proactive legal planning is essential for manufacturers and supply chain operators seeking to capture AI’s benefits while minimizing exposure.

As these shifts unfold, the volatility of global manufacturing and supply chains remains a critical factor, intensified by geopolitical tensions, economic fluctuations, and persistent disruptions. Strategic legal planning and agile, well-counseled responses are essential to manage competitive pressures and the intricate web of regulations, contracts, and potential claims worldwide.

To aid industry leaders, innovators, and their legal advisors in navigating this complex risk environment, Foley & Lardner is thrilled to present the 2026 AI in Manufacturing & Supply Chain Series. This series will offer legal insights and risk analyses that delve into the pivotal developments influencing these sectors. Join us as we examine key legal risks, emerging regulatory requirements, and strategic imperatives arising from new AI technology, including but not limited to:

  • Liability exposure from AI-driven predictive maintenance, quality control, and production scheduling—including product liability implications, warranty considerations, and risk mitigation strategies when AI systems inform critical operational decisions
  • Legal frameworks for building resilient, visible, and autonomous supply chains—including contractual risk allocation, indemnification strategies, and liability considerations when deploying AI-driven predictive analytics and agentic systems
  • Data governance, privacy compliance, and legal risks of system integration when scaling AI across manufacturing and IoT ecosystems—including legacy infrastructure challenges and regulatory requirements for data handling
  • Cybersecurity liability, privacy litigation risks, and governance of AI-enabled smart factories—including regulatory enforcement exposure, breach notification obligations, and strategies for managing unauthorized “shadow AI” deployments
  • Intellectual property protection strategies, patentability challenges for AI-assisted inventions, trade secret safeguards, and contractual approaches to data-ownership disputes in smart manufacturing environments
  • Compliance obligations and enforcement risks in the evolving U.S. and global AI regulatory environment, including the EU AI Act’s requirements for high-risk systems in manufacturing and supply chain applications and penalties for non-compliance
  • Contractual best practices and risk allocation strategies for AI vendor agreements, including liability caps, indemnification provisions, performance guarantees, audit rights, and dispute resolution mechanisms in manufacturing and supply chain contexts
  • Legal due diligence for AI investments, avoiding implementation pitfalls that create liability, and establishing governance frameworks that support compliant, enterprise-wide AI deployment in manufacturing and supply chain operations

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