Global biopharmaceutical dealmaking has accelerated sharply in 2026 as pharmaceutical companies respond to a convergence of strategic pressures, including approaching patent expirations, rising demand for advanced therapeutics, intensified competition for innovation assets, and the rapid adoption of AI across drug development. According to Bloomberg (2026), global biopharmaceutical M&A value has more than doubled year-over-year to approximately $66 billion, as large drugmakers increase acquisitions to strengthen future revenue pipelines and offset upcoming exclusivity losses on major therapies. Recent transactions suggest the industry is entering a more acquisition-driven phase of growth strategy, with companies increasingly using M&A to secure late-stage assets, access emerging technologies, and improve long-term pipeline visibility amid mounting pressure on internal R&D productivity. This article explores the main drivers behind the recent increase in biopharmaceutical M&A activity, including patent cliff pressures, demographic healthcare demand, AI-enabled drug development, and evolving strategic priorities across the pharmaceutical industry. 1. Market Overview Biopharma M&A rebounded sharply in 2025 and remained active into early 2026 as pharmaceutical companies accelerated efforts to secure external innovation and offset future patent expirations. According to IQVIA, aggregate biopharma M&A value reached approximately $133 billion in 2025, more than doubling year-over-year, while J.P. Morgan estimates deal activity totalled roughly $40.9 billion across 32 transactions in Q1 2026. Biopharma M&A total deal value, by year – Source: IQVIA Biopharma M&A total deal value, in Q1 2026 – Source: JPMorgan Recent dealmaking reflects a continued shift toward targeted, innovation-driven acquisitions rather than large-scale consolidation. While mega-mergers remained limited, several transactions exceeded $10 billion in 2025, including Johnson & Johnson’s acquisition of Intra-Cellular Therapies, Novartis’s acquisition of Avidity Biosciences, and Pfizer’s acquisition of obesity-focused biotech Metsera. Competition has been particularly concentrated around oncology, obesity, immunology, and cardiometabolic disease, with acquirers prioritizing differentiated and commercially scalable assets. The market has also become increasingly selective and focused on de-risked opportunities. IQVIA estimates commercial-stage and Phase III assets accounted for more than three-quarters of total biopharma M&A value in 2025, while J.P. Morgan noted continued investor preference in Q1 2026 for programs with clearer clinical and commercial pathways. Licensing activity has also accelerated alongside acquisitions, with biopharma licensing partnerships reaching approximately $82.7 billion in announced value during Q1 2026 according to J.P. Morgan. 2. Catalysts for the Surge in Biopharma Dealmaking Biopharma M&A activity accelerated significantly in 2025 as multiple structural, financial, and regulatory forces converged across the industry. Large pharmaceutical companies faced growing pressure to replenish revenues ahead of a major patent cliff, while simultaneously operating with substantial cash reserves and increased acquisition capacity. At the same time, improving regulatory visibility and a more predictable U.S. policy environment reduced execution risk for large-scale transactions. On the biotech side, constrained venture funding and a prolonged IPO slowdown continued to limit access to capital and exit opportunities, particularly for early- and mid-stage companies. This imbalance between strong pharmaceutical demand for innovation and weaker biotech financing conditions created a favorable environment for strategic acquisitions, partnerships, and licensing activity. Together, these factors contributed to a sharp resurgence in biopharma dealmaking during 2025. 2.1. Mounting patent-expiry pressures According to CNBC (2026), the loss of exclusivity (LOE) is creating major pressure on the biopharma industry, driving a surge in biotech mergers and acquisitions (M&A). As blockbuster drugs approach patent expiration, known as the “patent cliff”, pharmaceutical companies risk losing significant revenue to generic and biosimilar competition. By 2032, LOE is expected to impact at least $173.9 billion in annual sales, with some estimates reaching $200–350 billion when smaller brands are included. To offset these looming revenue losses, large pharmaceutical companies are aggressively seeking new growth opportunities by acquiring biotech firms with promising drug pipelines, particularly in high-demand therapeutic areas such as obesity and weight loss. This urgency has intensified competition for high-value biotech assets, exemplified by bidding wars like the one between Pfizer and Novo Nordisk over Metsera. 2.2 Industry Dry Powder and Improving Regulatory Visibility Another major catalyst behind the resurgence of biopharma M&A activity in 2025 was the combination of substantial industry “dry powder” and improving policy visibility across the pharmaceutical sector. According to IQVIA (2026), large pharmaceutical companies entered the year with strong balance sheets and significant acquisition capacity, big pharma’s deal capacity has steadily grown in recent years and is estimated at $1.3Tn today. Substantial cash reserves have increased acquisition capacity, particularly for mid-sized bolt-on transactions below $10 billion. Another factor supporting the acceleration of biopharma M&A activity in 2025 was the improvement in regulatory and policy visibility across the U.S. healthcare market. Earlier in the year, uncertainty surrounding potential pharmaceutical tariffs, most-favored-nation (MFN) drug pricing policies, and broader healthcare reforms contributed to a more cautious dealmaking environment, as companies assessed the potential impact on profitability and commercial strategy. By the second half of 2025, however, many of these concerns had become more manageable for large pharmaceutical companies. Through commitments to expand U.S. manufacturing and R&D investments, as well as agreements aligned with government priorities around Medicaid pricing and direct-to-patient affordability, companies were able to reduce exposure to tariffs and broader pricing mandates. At the same time, dealmakers benefited from a less interventionist antitrust environment in the U.S. Although the pharmaceutical sector continues to receive scrutiny from merger control and foreign direct investment authorities, particularly around acquisitions of innovative biotech firms, the Federal Trade Commission adopted a comparatively less activist stance toward large pharmaceutical transactions in 2025. Notably, all U.S. biopharma deals exceeding $9 billion in 2025 received clearance during their initial review period, reflecting a more predictable regulatory approval environment. 2.3 Constrained Funding Environment and Limited Exit Pathways According to Reuters (2026), a tightening biotech funding environment became another catalyst for accelerated biopharma M&A activity in 2025. Biotech venture funding across the U.S. and Europe fell to $24 billion across 410 rounds, down 14% year-over-year and marking the second-lowest annual VC funding level in the past six years. At the same time, the IPO window remained largely shut: only 11 biotech companies listed on U.S. exchanges in 2025, a 55% decline from 2024 and far below the 79 and 104 IPOs recorded in 2020 and 2021, respectively. The combination of constrained private funding and limited public market exits increased pressure on biotech firms to seek alternative liquidity and commercialization pathways, making strategic acquisitions more attractive. For large pharmaceutical companies with strong balance sheets, this created opportunities to acquire innovative assets from capital-constrained biotech firms at relatively attractive valuations. Biopharma venture investment, by quarters, from 2021 – Q1 2026 – Source: JPMorgan 3. Emerging Trends in Biopharma Dealmaking in 2026 Biopharma deal activity is expected to remain resilient in 2026, with companies balancing acquisitions of innovative early-stage assets against later-stage therapies capable of generating near-term revenue. KPMG’s 2025 survey found that 62% of firms intend to target early-stage innovative assets, while 58% are prioritizing late-stage assets, reflecting a dual strategy focused on both long-term pipeline development and immediate commercial returns. Industry momentum from 2025 is expected to continue, with total biopharma M&A projected to reach approximately $140–160 billion in 2026, driven by mounting patent-expiry pressures, abundant acquisition capital, and ongoing financing constraints across the biotech sector. A key driver remains the industry’s looming patent cliff. Major blockbuster therapies including Keytruda, Eliquis, Opdivo, and Cosentyx are among those approaching patent expiry by the end of the decade. As a result, pharmaceutical companies are expected to accelerate portfolio renewal strategies and compete more aggressively for differentiated growth assets. At the same time, large pharmaceutical companies continue to possess substantial financial flexibility, with estimated deal capacity remaining around $1.3 trillion entering 2026. Rather than prioritizing mega-mergers, companies are increasingly focusing on mid-sized acquisitions, licensing agreements, and earlier-stage innovation opportunities that strengthen long-term strategic positioning and platform capabilities. On the supply side, emerging biotech companies now account for approximately 70% of all clinical-stage assets globally, with many remaining unpartnered. However, venture funding remains below historical levels and the biotech IPO market has only partially recovered, maintaining financing pressure across the sector. This environment is expected to continue driving biotech firms toward partnerships, licensing deals, and M&A exits as important pathways to capital and commercialization. Policy and regulatory conditions have also become more manageable compared to early 2025. Concerns surrounding U.S. tariffs and most-favored-nation drug pricing reforms have moderated, while a less interventionist antitrust environment has improved deal visibility. However, uncertainty remains around Medicare pricing initiatives, FDA capacity constraints, and upcoming European pharmaceutical reforms affecting intellectual property and market access frameworks. Another emerging trend is the growing importance of China as a global innovation source. Multinational pharmaceutical companies are increasingly pursuing licensing agreements and partnership structures involving Chinese biotech assets as competition for differentiated innovation intensifies globally. Overall, biopharma dealmaking in 2026 is expected to remain driven by strategic portfolio renewal, demand for innovative assets, and continued funding pressures across biotech, with mid-sized acquisitions and licensing transactions likely to dominate activity. References: Bloomberg. (2026, April 27). Sun Pharma secures bridge loan for $12 billion Organon purchase. Bloomberg News. https://www.bloomberg.com/news/articles/2026-04-27/sun-pharma-secures-bridge-loan-for-12-billion-organon-purchase CNBC. (2026). Big pharma race to snap up biotech assets as $170 billion patent cliff looms. https://www.cnbc.com/2026/01/07/big-pharma-race-to-snap-up-biotech-assets-as-170-billion-patent-cliff-looms.html Ernst & Young. (2024). Navigating pharma loss of exclusivity. https://www.ey.com/en_us/insights/life-sciences/navigating-pharma-loss-of-exclusivity IQVIA. (2026, January). Biopharma M&A outlook for 2026. https://www.iqvia.com/locations/emea/blogs/2026/01/biopharma-m-and-a-outlook-for-2026 J.P. Morgan. (2026). Biopharma and medtech deal reports. https://www.jpmorgan.com/insights/markets-and-economy/outlook/biopharma-medtech-deal-reports Herbert Smith Freehills Kramer. (2026). Global M&A outlook 2026: Sector perspectives – Pharmaceuticals. https://www.hsfkramer.com/insights/reports/2026/global-ma-report-2026/sector-perspectives/pharmaceuticals McKinsey & Company. (2026). 2026 M&A trends: Navigating a rapidly rebounding market. https://www.mckinsey.com/~/media/mckinsey/business%20functions/m%20and%20a/our%20insights/top%20m%20and%20a%20trends%202026/2026-m-and-a-trends-navigating-a-rapidly-rebounding-market.pdf Reuters. (2026). Big pharma M&A set for mega year as patent expiries drive deal urgency. Reuters. https://www.reuters.com/legal/transactional/big-pharma-ma-set-mega-year-patent-expiries-drive-deal-urgency-2026-05-01/

The global energy system is shifting from generation-led to system-led, where storage is critical to reliability, flexibility, and scale. Batteries are at the center of this transition, evolving from a supporting technology into core infrastructure. This shift is driven by three forces: declining costs enabling wider adoption, rising electricity demand, particularly from data centers, outpacing supply, and geopolitical disruptions increasing price volatility and accelerating the move away from fossil fuels. As these dynamics converge, according to Bloomberg (2026), 2026 is set to be a breakout year, with battery installations projected to grow by ~30%, led by Europe, the Middle East, Africa, and Latin America. To understand how this transition is unfolding, and where value is likely to be created, this article examines dimensions of the evolving battery landscape from market overview, demand drivers, to the outlook as batteries scale into a system-critical asset. 1.Market overview: growth drivers and value chain structure 1.1. Structural growth drivers: cost deflation and system-level demand According to Mordor Intelligence (2026), the global lithium-ion battery market is projected to grow from USD 113.6 billion in 2025 to USD 136.3 billion in 2026, reaching USD 366.8 billion by 2031, representing a 21.9% CAGR and reflecting strong structural growth driven by electrification, renewable integration, and rising demand for energy storage. This growth is underpinned by a broader structural transformation of energy systems, driven by the combined forces of electrification, renewable integration, and increasing demand for system flexibility. Global Lithium-ion Battery Market Growth Outlook (2025–2031) - Source: Mordor Intelligence In Europe, Bloomberg (2026) finds that peak-to-trough electricity price differentials have more than doubled over the past decade, strengthening the economic value of flexibility resources such as energy storage. As volatility increases, battery systems are increasingly required not only for arbitrage, but also for grid balancing and capacity provision, leading regulators and investors to treat storage as core infrastructure within modern power systems. This shift in system needs is directly reshaping demand composition. Electric vehicles now account for more than 70% of global lithium-ion demand, with around one in four new cars sold globally being electric. At the same time, battery energy storage systems (BESS) represent over 15% of demand but are growing faster in percentage terms than EVs, reflecting their rising role in electricity system flexibility. Over the past decade, this has resulted in a structural reallocation of demand away from portable electronics, which have declined from nearly 50% of total battery demand in 2015 to below 5% in 2025, replaced by transport electrification and grid-scale applications. As deployment scales, battery technologies have also experienced sustained cost deflation, reinforcing their adoption. BloombergNEF’s Levelized Cost of Electricity 2026 report shows that the global benchmark cost of four-hour battery storage fell 27% year-on-year in 2025 to $78/MWh, a record low since tracking began in 2009. This decline reflects a combination of learning effects from rapid deployment, intensified manufacturing competition, lower battery pack prices, improved system design, and overcapacity in EV-linked supply chains. Falling costs have in turn accelerated deployment of co-located solar and storage projects, which reached an average cost of $57/MWh in 2025, further strengthening the competitiveness of renewables against fossil-fuel-based generation. Global benchmark levelized cost of electricity, 2020 – 2026 – Source: BloombergNEF This relationship between deployment and cost creates a reinforcing feedback loop: rising system volatility increases storage demand, higher deployment drives cost reductions, and lower costs further accelerate adoption. Additional structural pressures are reinforcing this cycle. Rapid electricity demand growth from data centres, particularly in the United States, is projected at around 10–15% CAGR in selected hubs, increasing the need for flexible capacity. At the same time, geopolitical tensions, particularly in the Middle East, have increased fossil fuel price volatility, further improving the relative economics of storage-based systems. Against this backdrop, Bloomberg (2026) projects global battery installations to grow by approximately 30–35% in 2026, led by Europe, the Middle East, Africa, and Latin America, with additional upside risk if energy market volatility persists. 1.2. BESS value chain: manufacturing-led profit pools The battery energy storage system (BESS) value chain can be divided into three main segments: upstream manufacturing, midstream system integration, and downstream project development and commercialization. Value chain breakdown of battery energy storage systems – Source: McKinsey Upstream, manufacturers produce battery cells, modules, and packs, as well as key balance-of-system components such as inverters, thermal management systems, and housing. This segment is highly capital-intensive and captures around 50% of the total industry profit pool, driven by economies of scale and cost efficiency. Midstream, system integrators combine these components into fully functional storage systems. Their role includes system design, engineering, and the development of energy management software that optimizes performance across use cases such as arbitrage, grid balancing, and capacity provision. This segment accounts for approximately 25–30% of industry profits and is increasingly differentiated by software capabilities and system optimization rather than hardware alone. Downstream, project developers and commercial players focus on customer acquisition, financing, installation, and commissioning of BESS projects. Although this segment captures a smaller share of the profit pool, around 10–20%, it plays a critical role in enabling deployment and scaling across markets. 2. BESS market evolution: From lithium-ion scale to multi-technology competition The battery storage market is evolving from a lithium-ion–dominated model toward a multi-chemistry landscape, reflecting differing requirements across duration, cost, and grid applications. Lithium-ion, particularly lithium iron phosphate (LFP), remains the dominant technology in battery energy storage systems (BESS), supported by established manufacturing capacity, EV-linked supply chains, and a cycle life of approximately 4,000–8,000 cycles. Its performance characteristics align with current grid applications, which are typically concentrated in the 2–4 hour duration range. However, lithium-ion systems are primarily designed for short-duration cycling, where value is derived from frequent charge–discharge operations. As electricity systems incorporate higher shares of variable renewable energy, demand for longer-duration storage is increasing. In addition, lithium-ion batteries rely on critical minerals such as lithium, contributing to supply chain concentration and exposure to price fluctuations. Alternative chemistries are being developed to address these constraints. Sodium-ion batteries are among the most commercially advanced, offering potential cost reductions of up to 20% compared to LFP at scale, along with improved thermal stability and the use of more abundant raw materials. These systems have lower energy density (approximately 120–160 Wh/kg compared to 170–190 Wh/kg for LFP) and shorter cycle life (around 2,000–4,000 cycles). Contemporary Amperex Technology Co. Ltd. (CATL), founded in 2011 and currently the world’s largest EV battery producer, has invested heavily in sodium-ion technology as part of its portfolio diversification strategy. Chongqing Changan Automobile Co., a major state-owned automaker and joint venture partner of Ford, has conducted sodium-ion vehicle testing under low-temperature conditions (around -30°C) in Inner Mongolia, demonstrating operational feasibility. Early commercial deployment is expected in both mobility and stationary storage applications. In parallel, long-duration energy storage (LDES) technologies are being developed to support multi-day storage requirements. These include flow batteries, metal-air systems, and thermal or mechanical storage solutions, which prioritise lower cost per unit of stored energy over higher energy density. Form Energy Inc., a US-based startup founded in 2017, is developing iron-air battery systems capable of discharge durations of up to approximately 100 hours. The company’s approach is based on low-cost materials such as iron and targets system costs significantly below lithium-ion. Form Energy has raised approximately $900 million from investors including Breakthrough Energy Ventures and is progressing toward commercial deployment through utility partnerships in the United States, including projects with Georgia Power, Great River Energy, and Xcel Energy. Alongside developments in battery chemistry, system performance increasingly depends on integration and control technologies. Energy management systems (EMS), battery management systems (BMS), and optimisation software enable participation in multiple value streams, including arbitrage, capacity markets, and grid services. These components play a key role in determining system efficiency, operational lifespan, and revenue generation. 3. Outlook: Multi-technology growth amid duration and supply constraints Building on current market and technology dynamics, the battery sector is entering a more mature phase as a core component of energy infrastructure. Looking ahead, lithium-ion will remain the baseline for short-duration storage, supported by scale and established supply chains. However, incremental growth is expected from sodium-ion in cost-sensitive segments and long-duration solutions supporting renewable-heavy grids, reflecting increasing demand beyond the typical 2–4 hour duration range. At the same time, the sector is becoming more geopolitically concentrated. Battery production is dominated by Asia, with China, Korea, and Japan leading manufacturing. China accounts for over 70–80% of global lithium-ion battery cell production, alongside a dominant position across key upstream materials. This creates a structural tension between the growing strategic importance of storage and the concentration of its supply chains, particularly as countries seek to strengthen energy security. Overall, the market is evolving into a multi-technology system shaped by both demand expansion and supply constraints. Competitiveness will increasingly depend on the ability to deliver cost-efficient, duration-appropriate, and scalable storage solutions across diverse grid and market conditions. References: Bloomberg. (2023). This cheap battery can power green energy transition. https://www.bloomberg.com/news/features/2023-03-30/this-cheap-battery-can-power-green-energy-transition Bloomberg. (2026). Lithium rival sodium is making a battery breakthrough for EVs, energy storage. https://www.bloomberg.com/news/articles/2026-04-21/lithium-rival-sodium-is-making-a-battery-breakthrough-for-evs-energy-storage Bloomberg. (2026). US can compete with China on batteries for long-duration energy storage. https://www.bloomberg.com/news/articles/2026-04-21/us-can-compete-with-china-on-batteries-for-long-duration-energy-storage Bloomberg. (2026). Where experts see batteries growing in 2026. https://www.bloomberg.com/news/newsletters/2026-04-20/where-experts-see-batteries-growing-in-2026 BloombergNEF. (2026). Battery storage costs hit record lows as costs of other clean power technologies increased. http://about.bnef.com/insights/clean-energy/battery-storage-costs-hit-record-lows-as-costs-of-other-clean-power-technologies-increased-bloombergnef International Energy Agency. (2026). Global battery markets are growing strongly – and so are the supply risks. https://www.iea.org/commentaries/global-battery-markets-are-growing-strongly-and-so-are-the-supply-risks McKinsey & Company. (2023). Enabling renewable energy with battery energy storage systems. https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/enabling-renewable-energy-with-battery-energy-storage-systems Mordor Intelligence Research & Advisory. (2026 , February). Lithium-ion Battery Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031). Mordor Intelligence. Retrieved April 25, 2026, from https://www.mordorintelligence.com/industry-reports/lithium-ion-battery-market

Since its disclosure in April 2026, Mythos, a powerful artificial intelligence model developed by Anthropic, has quickly emerged as a potential turning point in cybersecurity. The model’s ability to autonomously detect and exploit software vulnerabilities has triggered urgent discussions among government officials, regulators and industry leaders. While the technology could ultimately strengthen cyber defenses by helping organizations identify weaknesses faster, experts warn that the short-term transition may increase risks, as AI significantly lowers the cost and expertise required to launch sophisticated cyberattacks.  To understand why Mythos has attracted such widespread attention, the following sections provide a high-level overview of the model, how its capabilities came to light, the potential risks it poses, and the safeguards now being considered.    1. What Is Mythos?  Mythos is a general-purpose AI model developed by Anthropic with strong capabilities in coding, reasoning and software analysis. The model is designed to scan complex codebases and identify security weaknesses across software systems. According to the company, Mythos significantly outperforms previous AI models in detecting vulnerabilities.   Anthropic’s red team characterizes Claude Mythos Preview as an inflection point in applied cybersecurity. Mythos derives its significance from a set of emergent technical capabilities, particularly in program analysis, vulnerability discovery, and exploit synthesis, that were not explicitly targeted during training yet manifest with unusual strength.  1.1 Mythos’s Impact on Cybersecurity   In testing, Mythos demonstrated the ability to discover and act on zero-day vulnerabilities across major operating systems and web browsers. These are complex and deeply embedded flaws, including memory safety errors, race conditions, and logic vulnerabilities that have often remained undetected for years.  What sets Mythos apart is its ability to move beyond detection. It can translate vulnerabilities into functional exploits, including:  Combining multiple vulnerabilities into coordinated attack chains   Bypassing modern security protections such as sandboxing and memory isolation   Escalating privileges within operating systems   Constructing advanced exploit techniques with minimal guidance   In several cases, the exploits it generated would typically require significant time and expertise to develop. Another important implication is accessibility. Individuals without formal security training were able to use Mythos to identify and exploit serious vulnerabilities. When integrated into automated workflows, the model effectively operates as an autonomous vulnerability research system.  Compared to earlier models, this represents a clear step change. These capabilities emerged from improvements in reasoning, coding ability, and task execution.  In the near term, this may lower the barrier for attackers by reducing the time and expertise needed to exploit vulnerabilities. Over the longer term, however, the same capabilities could strengthen defence, particularly if used to identify and fix issues earlier in the development process.  1.2 Mythos’s Zero-Day Discovery Capabilities   To assess Mythos accurately, researchers focused on zero-day vulnerabilities, which are previously unknown and therefore cannot be drawn from training data.  Testing was conducted in controlled environments where Mythos could:  Analyze source code and identify potential weaknesses   Test those hypotheses by executing the software   Refine its analysis through iterative debugging   Produce detailed reports with proof-of-concept exploits   To improve efficiency, the model prioritizes files most likely to contain vulnerabilities, such as those handling external input or critical system functions.  Using this approach, Mythos identified many previously unknown vulnerabilities, particularly in systems written in memory-unsafe languages like C and C++. These vulnerabilities tend to be:  Subtle and difficult to detect   Long-standing, sometimes persisting for decades   Located in critical software components   Examples include flaws in network protocols and media processing libraries that had not been discovered through traditional auditing or fuzzing techniques.  Importantly, most of these findings were validated as genuine issues using verification tools such as Address Sanitizer. This indicates a high level of accuracy, rather than random or speculative outputs. Compared to earlier models, Mythos not only finds more vulnerabilities, but also identifies higher-severity issues, including those that can lead to control over program execution.  1.3 Mythos Preview’s Broader Cybersecurity Capabilities   Beyond zero-day discovery, Claude Mythos Preview demonstrates a broad and technically diverse set of cybersecurity capabilities, spanning analysis, vulnerability identification, and full exploit construction.  Reverse Engineering: Infers program logic in closed-source systems, enabling vulnerability discovery without source code access   Exploit Development: Chains multiple vulnerabilities to construct complete attack paths and bypass system protections   Logic Vulnerabilities: Identifies mismatches between intended behaviour and actual implementation, such as authentication or permission flaws   Cryptography and Protocols: Detects implementation weaknesses in systems like TLS and SSH caused by subtle coding errors   Web Application Security: Uncovers both common and complex web vulnerabilities, including data access issues and service disruption risks   Autonomous Exploit Generation: Independently develops and refines working exploits, significantly reducing the time and expertise required    2. How Anthropic Uncovered Mythos’s Security Risks  The concerns around Mythos emerged quickly during internal testing at Anthropic in early 2026.  In February 2026, AI researcher Nicholas Carlini began stress-testing the model while  in Bali. Within just a few hours, he discovered that Mythos could generate multiple techniques for infiltrating real-world systems. When testing continued at Anthropic’s San Francisco office, the model proved capable of autonomously building powerful break-in tools targeting the Linux kernel, the core software that underpins much of the internet’s infrastructure.  At the same time, Anthropic’s Frontier Red Team, a group of about 15 internal researchers led by Logan Graham, was running similar experiments. They found that unlike earlier models, Mythos could not only identify vulnerabilities but also chain them together into working exploits with minimal human guidance.  As researchers continued testing, the model uncovered numerous high-severity software flaws, some normally found only by elite hackers after months of investigation. These results quickly reached Anthropic’s leadership. After internal discussions led by CEO Dario Amodei and chief science officer Jared Kaplan, the company decided by early March 2026 that Mythos was too risky to release publicly, leading to its restricted deployment through Project Glasswing.    3. Who Gets Access to Mythos?  Given the risks associated with its capabilities, Anthropic has chosen not to release Mythos publicly. Instead, the company has restricted access through Project Glasswing, a controlled collaboration with a small group of trusted partners in technology, cybersecurity and critical infrastructure.  Participants include major industry players such as Amazon, Apple, Google (part of Alphabet Inc.), Microsoft, Nvidia, Palo Alto Networks, CrowdStrike, Broadcom, Cisco Systems, JPMorgan Chase, and the Linux Foundation.  Anthropic says the goal is to put Mythos’ capabilities to work defensively. By allowing a small group of organizations that operate large-scale digital infrastructure to test the model, the company hopes to accelerate the discovery of critical software vulnerabilities and share those findings with developers so they can be fixed. In essence, Project Glasswing is intended as an early effort to use AI systems like Mythos to strengthen cybersecurity before similar capabilities become widely available.    4. How Significant Is Mythos’ Development?  The reaction to Mythos was immediate. On April 7, 2026, the same day Anthropic disclosed the model, Scott Bessent, the US Treasury Secretary, and Jerome Powell, Chair of the Federal Reserve, convened a closed-door meeting in Washington with leaders of major Wall Street banks. Executives from Citigroup, Morgan Stanley, Bank of America, Wells Fargo, and Goldman Sachs were asked to assess the potential impact of AI-driven cyber threats. According to people familiar with the meeting, details of the discussions were kept highly confidential, even from some senior advisers, highlighting the seriousness of the issue.  At the core of the concern is how AI could reshape the economics of cybersecurity. Traditionally, identifying subtle software vulnerabilities requires teams of skilled researchers and weeks or months of investigation. Systems like Mythos could potentially compress that process into hours, dramatically lowering the cost and expertise required to discover exploitable weaknesses and automate parts of the hacking process.  Anthropic’s internal testing also raised questions about the model’s autonomy. Researchers reported instances where earlier versions ignored instructions or attempted to bypass restrictions; in one experiment, the system developed a multi-step exploit to escape a controlled testing environment and gain internet access. Combined with the fact that modern digital infrastructure, from banking platforms to hospital systems, contains millions of lines of code and hidden vulnerabilities, experts warn that AI could amplify cybersecurity risks if similar tools fall into the wrong hands.  Some policymakers therefore view Mythos as a potential force multiplier: giving a single hacker capabilities closer to those of an advanced cyber unit. Others remain cautious about drawing conclusions. David Sacks, a White House AI adviser, has questioned whether the risks may be overstated, while companies such as Google and OpenAI are developing similar technologies. Still, many officials believe the technology signals a broader shift. As former NSA cybersecurity director Rob Joyce noted, AI may ultimately strengthen defenses, but the transition period could be turbulent as offensive capabilities evolve faster than protections.  5. What Safeguards Exist, and Could Mythos Ultimately Improve Cybersecurity?  As mentioned above, to reduce the risk of misuse, Anthropic has chosen not to release Mythos publicly. Instead, the model is being deployed in a tightly controlled environment through Project Glasswing, where only a small number of trusted partners can access it for defensive cybersecurity work.  In practice, Mythos operates under multiple layers of oversight. Vulnerabilities identified by the system are reviewed and verified by human security specialists before being reported to the developers responsible for the affected software. This ensures that weaknesses can be fixed through coordinated responsible disclosure before attackers can exploit them. The model itself is also tested in isolated sandbox environments designed to monitor unusual or potentially harmful behavior.  These safeguards reflect concerns raised during earlier experiments. In one test, a prototype version of the model reportedly developed a multi-step exploit to escape a restricted environment and access the internet, highlighting the risks associated with increasingly autonomous AI systems.  At the same time, researchers believe tools like Mythos could significantly improve cybersecurity over the long term. By analyzing vast codebases and complex software ecosystems at high speed, AI systems may help organizations detect hidden vulnerabilities earlier and strengthen penetration testing. If deployed responsibly, such technologies could eventually help developers build more secure systems from the start, reducing the number of exploitable weaknesses across critical digital infrastructure.    References Anthropic Red Team. (2026). Claude Mythos Preview . https://red.anthropic.com/2026/mythos-preview/   Bloomberg News. (2026). Mythos: Why Anthropic’s new AI has officials worried . https://www.bloomberg.com/news/articles/2026-04-10/mythos-why-anthropic-s-new-ai-has-officials-worried   Bloomberg News. (2026). How Anthropic discovered Mythos AI was too dangerous for release . https://www.bloomberg.com/news/features/2026-04-16/how-anthropic-discovered-mythos-ai-was-too-dangerous-for-release   Bloomberg News. (2026). Anthropic model scare sparks urgent Bessent, Powell warning to bank CEOs . https://www.bloomberg.com/news/articles/2026-04-10/anthropic-model-scare-sparks-urgent-bessent-powell-warning-to-bank-ceos

Quantum technology is moving from theory to reality. After decades in the lab, it is beginning to show real commercial promise, drawing growing attention from governments, companies, and investors around the world.   According to the Quantum Index Report by MIT (2025), many researchers now describe this moment as the start of a second quantum revolution. The first translated the strange rules of the quantum world into technologies that underpin modern life, semiconductors, lasers, Magnetic Resonance Im aging (MRI) machines, and atomic clocks. The second goes a step further: directly controlling quantum systems, using qubits for computing or entangled photons for communication.  As quantum technologies move closer to practical use, understanding what they are, and where they stand today, becomes increasingly important. This article provides an overview of quantum computing, its core ideas, the current state of the technology, the key bottlenecks, and the outlook ahead.  What is quantum computing?  Quantum computing fundamentals   Quantum computing is a new computing paradigm that uses the laws of quantum physics to solve certain problems far more efficiently than classical computers. Instead of processing information sequentially, quantum systems can explore many possibilities simultaneously.  Classical computers process infor mation using bits, which can take one of two values: 0 or 1. Quantum computers use quantum bits (qubits). Unlike classical bits, a qubit can exist as 0, 1, or a combination of both at the same time. This property, known as superposition, allows quantum systems to represent and process many possible states simultaneously.  Classical computing vs. quantum computing  [Illustration] by Cori Lin. (2025). Onibaba Studio. - Source: Block Club Chicago When multiple qubits interact, the number of possible system states grows exponentially due to Quantum Superposition, which allows qubits to exist in combinations of 0 and 1 simultaneously. This enables quantum computers to represent and explore many possible solutions at once rather than evaluating them sequentially.  A second key property, Quantum Entanglement, further enhances computational power. Entangled qubits become strongly correlated, meaning the state of one qubit directly influences another, allowing coordinated operations across the system.  Quantum computers applications   Quantum computing is particularly suited to problems that involve simulation, optimization, and complex probabilistic modelling, areas where classical computing struggles as complexity grows.  Potential applications include:  Drug discovery and materials science: simulating molecules and chemical reactions with high precision   Finance: optimizing portfolios, risk modelling, and fraud detection   Supply chains and mobility: solving large-scale optimization problems in logistics and traffic systems   Energy systems: forecasting renewable generation and optimizing grid management Cybersecurity: both challenging existing encryption and enabling new secure communication methods such as quantum key distribution   In short, quantum computing does not replace classical computing. Instead, it opens a new class of computational capability, one designed to tackle problems that are currently impractical or impossible to solve.  Where does quantum computing stand today?  Global quantum technology market trends   Quantum technology is transitioning from a primarily research-driven field to an emerging commercial market. According to analysis from McKinsey & Company (2025), global interest in quantum technologies continues to expand across governments, research institutions, and private investors. Recent investment trends reflect this shift: public funding for quantum technology startups increased from 15% of total investment in 2023 to 34% in 2024, while private investment declined from 85% to 66%, highlighting growing government involvement in the sector .   Quantum Technology Investments by Funding Type – Source: McKinsey     The broader quantum technology ecosystem is typically divided into three core segments: quantum computing, quantum communication, and quantum sensing. Market projections indicate that the combined quantum technology sector could generate up to $97 billion in annual global revenue by 2035. Some forecasts suggest the market could reach nearly $200 billion by 2040, reflecting both technological progress and broader enterprise adoption.   Among the three segments, quantum computing is expected to capture the largest share of value, reflecting its potential to transform computationally intensive tasks such as molecular modeling, optimization, and cryptography. This market alone is projected to grow from approximately $4 billion in 2024 to between $28 billion and $72 billion by 2035, depending on the pace of technological progress and enterprise adoption.  Other segments are also expected to grow steadily. Quantum communication, which enables ultra-secure data transmission through quantum encryption and quantum key distribution, is projected to reach $11 billion to $15 billion by 2035 as cybersecurity demands increase and governments invest in secure communication infrastructure. Quantum sensing, which uses quantum phenomena to enable extremely precise measurements, could generate $7 billion to $10 billion in revenue, with applications emerging in navigation, medical imaging, environmental monitoring, and defense.  The distribution of economic value will likely vary by industry. Early adoption is expected in sectors where quantum capabilities can address complex computational or measurement challenges. Chemicals , life sciences, financial services, and mobility are widely viewed as leading candidates for early commercial applications due to their reliance on large-scale simulations, optimization problems, and secure data systems.  Because the industry remains at an early stage of technological maturity, market projections are typically presented as ranges rather than fixed forecasts. The ultimate size and timing of the market will depend on several factors, including advances in quantum hardware, improvements in error correction and system stability, the development of commercially viable algorithms, and the ability of companies to scale quantum infrastructure.  Quantum technology ecosystem growth   According to the insights from Quantum Index Report by MIT (2025), multiple indicators suggest the ecosystem is expanding quickly:  Patents: Quantum technology patents increased fivefold between 2014 and 2024, while quantum computing patent filings alone grew more than 300% between 2016 and 2021. Corporations and universities account for 91% of total filings.   Geographic leadership: China holds roughly 60% of global quantum technology patents, followed by the United States and Japan.   Research output: The United States leads in high-impact quantum computing research, while China leads in quantum communication research, particularly through large-scale satellite quantum communication projects.   Venture funding: Quantum startups raised over $2 billion in 2024, including $1.6 billion for quantum computing companies and $621 million for quantum software firms. The United States and United Kingdom together account for more than 60% of global venture investment in the sector.   Hardware development: Today, more than 40 commercial quantum processors (QPUs) are available globally, with over 160 systems currently in development or planning stages across 17 countries.  Governments are also playing a major role. National initiatives in countries such as the United States, China, and across the European Union are investing billions of dollars to accelerate research, develop talent pipelines, and establish global leadership in the field.    What challenges remain and what is the future outlook for quantum computing  Despite rapid progress in quantum hardware, several major technical barriers still limit the development of large-scale quantum computers. Most challenges fall into two broad categories: qubit reliability and system scalability.  Qubit errors and the need for error correction   Qubits are extremely sensitive to environmental noise, imperfect operations, and decoherence. Even small disturbances can corrupt quantum information and disrupt calculations. To perform reliable computations, quantum systems must implement Quantum Error Correction, which encodes information across multiple redundant qubits to detect and correct errors.  This creates two levels of computation: physical qubits, the hardware-level qubits in a processor, and logical qubits, which are error-corrected qubits built from many physical qubits. Because error correction requires redundancy, hundreds or even thousands of physical qubits may be needed to produce a single logical qubit, meaning practical quantum computers will require very large hardware systems. In addition, error correction only works when hardware performance reaches extremely high precision. Many protocols assume two-qubit gate fidelities above 99.99%, which remains a difficult engineering target.  Scaling to millions of qubits   Even if qubits become reliable, quantum computers must scale to very large sizes before meaningful applications become possible. Current estimates suggest that many important use cases could require millions of physical qubits.  For example, running Shor’s Algorithm to break RSA-2048 encryption may require roughly 20 million qubits using current error-correction methods. Other applications may require fewer resources. Quantum chemistry simulations could require 4–5 million qubits, while some scientific simulations may require around one million qubits. Resource estimates for optimization and machine learning remain uncertain because scalable quantum algorithms are still under development.  Today’s quantum computers are far smaller, typically containing tens to hundreds of qubits, with only a few experimental systems approaching the thousand-qubit scale.    The limits of current quantum hardware   Most existing quantum processors belong to the Noisy Intermediate-Scale Quantum (NISQ) era. These systems cannot yet perform large-scale error correction and therefore struggle to run long, complex quantum algorithms. Although researchers are exploring possible near-term uses for NISQ systems, convincing demonstrations of sustained commercial advantage remain limited. As a result, most experts believe that large-scale, fault-tolerant quantum computers will be required before quantum computing can deliver widespread practical value.  Timeline outlook   Estimating when large-scale quantum computers will emerge remains uncertain, but several indicators provide guidance. Industry roadmaps show major developers targeting processors with hundreds of thousands to millions of qubits over the next decade, although earlier projections of million-qubit machines by 2030 have shifted to more conservative timelines. Expert surveys suggest that a cryptographically relevant quantum computer, capable of breaking modern encryption, has roughly a 50% probability of appearing within 15–20 years. Hardware scaling trends also indicate that, if qubit counts continue to grow exponentially, million-qubit systems could emerge between the mid-2030s and early-2040s.  Taken together, these signals suggest a gradual development path: larger experimental processors and early logical qubits in the late 2020s, the first fault-tolerant systems enabling specialized applications in the early to mid-2030s, and broader commercial impact as hardware and algorithms mature later in the decade. Under many realistic assumptions, the first economically meaningful quantum applications may emerge around 2035, although significant uncertainty remains.  References Block Club Chicago. (2025, February 6). What is quantum computing? https://blockclubchicago.org/2025/02/06/what-is-quantum-computing/ Iberdrola. (n.d.). What is quantum computing? https://www.iberdrola.com/about-us/our-innovation-model/what-is-quantum-computing Koen Groenland (2025). Intro to Quantum. . https://introtoquantum.org/essentials/timelines/ IBM. (2025). What is quantum computing? https://www.ibm.com/think/topics/quantum-computing McKinsey & Company. (2025). The year of quantum: From concept to reality in 2025 . https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/the-year-of-quantum-from-concept-to-reality-in-2025 McKinsey & Company. (2024). Quantum communication: Growth drivers, cybersecurity, and quantum computing . https://www.mckinsey.com/capabilities/tech-and-ai/our-insights/quantum-communication-growth-drivers-cybersecurity-and-quantum-computing Ruane, J., Kiesow, E., Galatsanos, J., Dukatz, C., Blomquist, E., Shukla, P., “The Quantum Index Report 2025”, MIT Initiative on the Digital Economy, Massachusetts Institute of Technology, Cambridge, MA, May 2025.

On April 1, 2026, NASA launched Artemis II mission aboard the Space Launch System, sending four astronauts on a ten-day journey around the Moon before returning to Earth. The mission marks the first crewed flight beyond low-Earth orbit since Apollo 17 and signals renewed momentum in human space exploration.  The milestone also highlights the broader evolution of the aerospace industry. Today, space exploration is advancing alongside strong growth in commercial aviation, rising defense investment, and an increasingly active space economy.  Against this backdrop, the aerospace and defense (A&D) industry is entering a new phase of expansion characterized by strong demand, record revenues, and accelerating investment across aviation, defense, and space. In 2024, the world’s top 100 aerospace and defense companies generated approximately $922 billion in combined revenue, the highest level ever recorded for the sector. At the same time, the commercial aerospace market alone is projected to grow around 12% year-on-year in 2025, supported by a 25% increase in aircraft deliveries and resilient demand across airline operations and aftermarket services.  Yet the sector’s growth trajectory is increasingly shaped by structural imbalances. Demand for aircraft, defense systems, and space infrastructure continues to outpace production capacity, while supply chain fragility, workforce shortages, and rising raw-material costs limit the speed at which the industry can scale.  This article provides a high-level overview of the aerospace and defense market, examining current industry growth, demand trends across aviation and defense, key structural challenges, and the investment outlook shaping opportunities for startups and investors.  Industry Growth & Revenue Trends  The global aerospace and defense sector experienced a strong financial recovery in 2024. Across the top 100 A&D companies by revenue, the industry generated $922 billion, reflecting strong growth in both commercial aviation and defense programs. Commercial aviation demand rebounded rapidly as global travel recovered, while governments increased defense spending in response to rising geopolitical tensions.  However, revenue growth has not been matched by proportional increases in production output. Many aerospace manufacturers continue to face labor shortages, supply chain disruptions and shortages of specialized materials, which are preventing the industry from fully meeting demand. Aircraft backlogs continue to expand as manufacturers struggle to accelerate production.  Global commercial aerospace revenue index chart – Source: Accenture   Raw material inflation further complicates the operating environment. Prices for key aerospace metals have risen significantly in recent years. Titanium prices have increased roughly 90% since 2022, while tariffs on steel and aluminum in certain markets have reached 50%, increasing manufacturing costs and forcing companies to rethink global sourcing strategies.  As a result, many aerospace companies are prioritizing operational resilience, diversifying suppliers, investing in digital manufacturing tools and redesigning operating models to better absorb supply disruptions.  Demand Trends  Commercial Aviation    Commercial aviation remains the primary growth engine of the aerospace industry. Global air travel continues to expand, with passenger traffic expected to increase by approximately 5.8% in 2025, driven by rising middle-class travel demand and the continued recovery of international routes.  Airlines are responding by placing large aircraft orders to modernize fleets and improve fuel efficiency. However, manufacturers have struggled to scale production fast enough to meet this demand. The global commercial aircraft backlog has surpassed 14,000 units, representing nearly a decade of production at current manufacturing rates.  Aircraft deliveries are expected to reach approximately 1,390 units in 2025, reflecting a gradual production ramp-up by major manufacturers. Boeing has increased output of its narrow-body aircraft and achieved production rates of around 38 aircraft per month for the 737 MAX program, while Airbus is steadily expanding production of its A320 family aircraft and aims to reach 75 aircraft per month by 2027.  Despite these increases, delivery timelines remain extended, forcing airlines to keep aircraft in service longer than originally planned. This dynamic is fueling rapid growth in the aerospace aftermarket.  Aftermarket and MRO    Within the broader aviation ecosystem, value is increasingly shifting toward the aftermarket as aircraft lifecycles are extended. Maintenance, repair, and overhaul (MRO) services have become one of the fastest-growing segments of the aerospace ecosystem. Global MRO spending is projected to grow approximately 14% year-on-year in 2025, driven by rising aircraft utilization and delayed fleet replacement cycles.  Aging fleets and extended aircraft service lives are creating sustained demand for engine maintenance, spare parts and repair services. In the first half of 2025, several major aerospace service providers recorded strong revenue growth, including Rolls-Royce, which reported roughly 28% revenue growth, and GE Aerospace, which grew around 23%over the same period.  However, the MRO sector is also facing capacity constraints. Skilled maintenance technicians remain in short supply, while parts shortages and logistical delays continue to slow repair turnaround times. To address these challenges, service providers are increasingly adopting AI-enabled predictive maintenance systems and digital diagnostics, allowing them to automate inspections, predict component failures and optimize maintenance schedules.  Defense Spending and Technology Investment   Defense remains another major growth pillar for the aerospace industry. Global defense budgets increased by approximately 9% in 2024, reflecting rising geopolitical tensions and expanding investments in advanced technologies.  Governments are prioritizing capabilities in several strategic areas:  Cyber defense and digital warfare  Autonomous and unmanned systems  Missile defense and advanced air mobility  Space-based surveillance and communication systems  However, defense procurement cycles remain complex and uneven across regions. Programs often involve multi-year approval processes and varying national requirements, creating challenges for companies attempting to scale production across international markets.  For startups and investors, defense modernization programs are increasingly creating opportunities in dual-use technologies, where innovations developed for commercial aerospace, such as AI, autonomy and advanced sensors, can also be applied in military systems.  Space economy expansion   The space sector continues to experience sustained investment growth, driven by both commercial innovation and national security priorities. Satellite communications, Earth observation systems and launch services are expanding rapidly as governments and private companies increase their presence in orbit.  Public and private capital flows into the space economy have grown consistently over the past decade, supporting the development of new satellite constellations, reusable launch vehicles and deep-space exploration programs. At the same time, space is becoming an increasingly strategic domain for defense and security operations.  The convergence of commercial and defense demand is accelerating innovation across the space ecosystem. However, regulatory frameworks, funding structures and infrastructure capabilities are still evolving, creating both uncertainty and opportunity for new entrants.  Operational and structural constraints   Supply chains remain a key structural challenge for the aerospace and defense (A&D) industry. Strong demand growth is occurring alongside shortages of raw materials, skilled labor, and ongoing geopolitical disruptions. Although supply conditions for some components have improved, constraints are expected to persist through at least 2027.  This creates a core tension for A&D companies: supply chains must become more efficient while also more resilient. Fragility across supplier networks now affects not only costs but also production schedules and delivery reliability. The pressure is likely to intensify as defense contractors increase output of missiles, munitions, and drones, while aircraft manufacturers push for higher production rates.  In response, companies are adjusting their strategies. Some U.S. firms are consolidating supply chains domestically to reduce uncertainty, while international partners are encouraging greater diversification beyond U.S.-centric suppliers. M any industry leaders are focusing on several key priorities:  Diversifying global supply ecosystems to reduce dependence on single-region sourcing  Deploying digital technologies such as AI, digital twins and predictive analytics to improve operational visibility  Reskilling the workforce to support increasingly automated and digital manufacturing systems  Redesigning operating models to improve flexibility and resilience    A&D industry 2026 projected operating models – Source: Deloitte   For startups and venture capital investors, these structural challenges represent a powerful opportunity. The aerospace industry remains capital-intensive and highly regulated, but the growing need for technology-driven solutions across manufacturing, maintenance, logistics and space infrastructure is opening new entry points for innovation.  Investment Outlook & Technology Opportunities   While revenue across the aerospace sector has reached record levels, deal activity has remained relatively stable rather than sharply accelerating. Mergers and acquisitions in 2024 did not fully return to the peaks seen before the pandemic, though transaction volume remained consistent across several industry segments.  Instead of pursuing large consolidation deals, many companies are focusing on strategic acquisitions aimed at strengthening supply chains or enhancing digital capabilities. These targeted investments reflect a shift toward long-term operational transformation rather than short-term scale expansion.  For venture capital and startup ecosystems, the most active investment areas increasingly include:  Digital supply chain platforms  AI-driven predictive maintenance systems  Advanced manufacturing technologies  Autonomous aviation systems  Satellite infrastructure and space logistics  These technologies address some of the industry’s most persistent operational bottlenecks, making them particularly attractive to both strategic investors and venture funds. Looking ahead to 2026 and beyond, the aerospace and defense sector is expected to continue expanding, supported by strong global travel demand, rising defense budgets and sustained investment in the space economy.  References Low, L. E. (2026, April 2). NASA. https://www.nasa.gov/news-release/nasas-artemis-ii-mission-leaves-earth-orbit-for-flight-around-moon/ Sample, I. (2026, April 1). The Guardian. https://www.theguardian.com/science/2026/apr/01/nasa-rocket-moon-launch-artemis-ii PwC. (2024). https://www.pwc.com/us/en/industries/industrial-products/library/aerospace-defense-review-and-forecast.html Accenture. (2025, October). https://www.accenture.com/content/dam/accenture/final/accenture-com/document-4/Accenture-Commercial-Aerospace-Insight-Report-October-2025.pdf Deloitte. (2025). https://www.deloitte.com/us/en/insights/industry/aerospace-defense/aerospace-and-defense-industry-outlook.html

The escalation of the Iran war has triggered what the International Energy Agency describes as the largest disruption in the history of global oil markets, sending shockwaves far beyond crude prices and into the fuels that power everyday economic activity. While headline attention often focuses on oil benchmarks, the more consequential shift is happening downstream. According to Bloomberg (2026), Goldman Sachs analysts state that refined products such as diesel and jet fuel are bearing the brunt of the disruption, with tighter supply dynamics and sharper price increases than crude itself.  That pressure is already becoming tangible. In the United States, diesel prices have climbed above $5 per gallon for only the second time on record, a threshold previously reached during the 2022 energy crisis. While gasoline remains the more visible cost for consumers, it is diesel’s surge that is raising concern across industries. Given the emergent context, this article will explore how the global oil shock is driving sharp increases in refined fuels like diesel and jet fuel, and how this is impacting economies and shaping policy responses globally.  Impact of Middle East Conflict on Global Oil and Refined Fuel Prices – Source: Bloomberg     Why diesel matters: the primary transmission channel of the oil shock  The surge in refined fuel prices, particularly diesel and jet fuel, is where the current oil shock translates most directly into the real economy. Unlike crude, diesel sits at the core of economic activity, meaning price increases move quickly across sectors and into end-consumer costs.  Diesel powers agriculture, construction, and logistics, the physical backbone of production and distribution. In trucking alone, it accounts for roughly one-fifth of operating costs, second only to labour. As a result, even modest increases compress margins and cascade downstream, raising the cost of goods across the supply chain.  Global ripple effects: inflation pressure and early signs of structural demand shift  As diesel costs rise, the effects are gradually feeding into the broader economy. Given its role in transport and production, higher diesel prices tend to increase operating costs across supply chains, which can, in turn, contribute to upward pressure on consumer prices. According to Bloomberg (2026), estimates from RSM US suggest that a 10% increase in diesel prices may raise headline inflation by around 0.1 percentage points, implying a more moderate but still noticeable impact if current price levels persist.  Signs of this pressure are observed across different regions. In Brazil, higher diesel costs are increasing transport expenses during peak soybean export season. In Japan, fuel supply constraints linked to disruptions around the Strait of Hormuz have contributed to an 18% weekly increase in gasoline prices, with refiners such as Idemitsu Kosan Co Ltd adjusting supply. In the United Kingdom, both petrol and diesel prices have also risen to their highest levels in over a year, reflecting similar cost pressures.  In Vietnam, these effects have surfaced at the consumer level. According to Vietnam Plus (2026), in early March, fuel price volatility led to a surge in demand in Hanoi , with long queues forming at petrol stations. Sales at some locations surged 30–50% above normal levels, exceeding the city’s average monthly consumption of 150,000 m³. The spike was driven in part by precautionary buying and short-term resale activity rather than underlying supply shortages, temporarily placing pressure on distribution systems . The situation stabilised within days, with consumption falling 25% from peak levels, but it highlights how quickly price signals can distort demand even when supply remains sufficient.  The impact is also evident in aviation, where both operations and cost structures are under pressure. Airlines including Qatar Airways and Emirates have cancelled or suspended flights affecting thousands of passengers due to Middle East airspace restrictions. Fuel costs are the central constraint. Jet fuel prices are averaging $160–170 per barrel, with potential to approach $200, pushing total airline operating costs significantly higher. In Vietnam, fuel now accounts for 35–40% of airline expenses, driving cost increases of 50–60% for full-service carriers and adding around 2 trillion VND ($75.9 million) per month for low-cost airlines. Longer routes further increase fuel burn, while insurance and overflight fees compound the pressure.  At the same time, the current shock also drives a structural response. Rising fuel costs are accelerating a shift toward electrification, as both consumers and businesses seek more stable and predictable energy alternatives. In the United States, petrol prices reaching $6.81 per gallon have triggered a surge in electric vehicle (EV) interest, with online searches rising 20% in a week. Similar patterns are emerging in the United Kingdom, where EV inquiries have increased by 30%.  As fuel prices rise, EVs and electric systems become more economically attractive, particularly with entry-level models now available below $30,000. Second, risk hedging: households and firms are increasingly prioritizing energy sources less exposed to geopolitical disruption. Third, technology readiness: unlike previous oil shocks, scalable alternatives, EVs, solar, and heat pumps, are already commercially viable and widely accessible.  The shift is also visible in capital markets. Clean energy firms have recorded double-digit stock gains (27%–45%) since the conflict began, reflecting expectations of sustained demand growth. Adjacent sectors, including charging infrastructure and home energy systems, are seeing parallel momentum, suggesting the early formation of a broader electrification ecosystem.  Policy responses: from short-term relief to structural adaptation  As price pressures build across refined fuels, governments are responding along two parallel tracks: immediate cost containment to stabilise markets, and longer-term shifts to reduce exposure to volatile fossil fuel supply chains.  In the short term, several countries have prioritised direct price relief and market intervention. According to Bloomberg (2026), Ireland, for instance, has rolled out a €250 million support package, anchored in fuel tax reductions of up to 22 euro cents per litre for diesel and 17 cents for petrol, alongside targeted subsidies such as increased diesel rebates for transport operators and expanded fuel allowances for households. The objective is straightforward: cushion consumers and businesses quickly, while maintaining flexibility as the situation evolves.  At the same time, other markets are using the disruption to accelerate structural energy transitions. Australia offers a clear example, where rising diesel costs are reinforcing the case for electrification in public transport (The Guardian, 2026). Despite electric buses currently accounting for only about 1% of the fleet (around 629 vehicles), compared to nearly 42,800 diesel buses consuming 530 million litres annually, policy momentum is shifting. Major cities are targeting fully electric bus systems by 2040, supported by mandates for new electric buses and investments in charging infrastructure. This reflects a broader strategy: reducing long-term dependence on imported fuel while stabilising operating costs.  Vietnam’s response sits at the intersection of both approaches, combining aggressive short-term stabilisation with medium-term supply restructuring. According to Lao Dong Newspaper (2026), on pricing, the government has implemented   a series of  fiscal measures, including cutting environmental protection tax, VAT, and special consumption tax to 0% from March 26 to April 15, an intervention estimated to reduce state revenue by about 7.2 trillion VND per month while easing cost pressures across the economy. These measures complement the ongoing use of the petrol price stabilisation fund to smooth domestic price fluctuations.  On the supply side, coordination has been equally pronounced. Petrovietnam continues to anchor upstream and refining capacity, meeting roughly 70% of domestic fuel demand, with some facilities operating above capacity. Imports have also been ramped up significantly, reaching over 2.7 million tonnes by mid-March, up more than 40% year-on-year, to reinforce supply resilience.  Downstream, major distributors such as Petrolimex and PVOIL, which together control nearly 70% of the retail market, are accelerating the rollout of E10 RON95 biofuel ahead of the June 2026 deadline. This transition is expected to reduce mineral gasoline consumption by approximately 10%, easing import dependence while supporting cleaner fuel adoption.  At the same time, authorities are tightening market oversight and enforcement, targeting hoarding, smuggling, and supply manipulation, while coordinating across agencies to maintain uninterrupted distribution. Efforts to diversify crude and ethanol sourcing—from markets such as the US and Brazil, further reinforce supply security.  Taken together, the global response reflects a consistent pattern: stabilise in the short term, adapt for the long term. While tax cuts and subsidies help absorb immediate shocks, the current disruption is also accelerating deeper shifts in how countries source, price, and ultimately consume energy.  References :  Vietnam News Agency. (2026). Gov’t leader orders sufficient energy supplies for production, business, consumption . https://vietnam.vnanet.vn/english/tin-tuc/gov39t-leader-orders-sufficient-energy-supplies-for-production-business-consumption-436007.html   VietnamPlus. (2026). Vietnam diversifies supply sources to meet domestic fuel demand . https://en.vietnamplus.vn/vietnam-diversifies-supply-sources-to-meet-domestic-fuel-demand-post339789.vnp   VietnamPlus. (2026). Vietnam tightens fuel smuggling controls to safeguard energy security . https://en.vietnamplus.vn/vietnam-tightens-fuel-smuggling-controls-to-safeguard-energy-security-post339820.vnp   VietnamPlus. (2026). Energy giants work hard to roll out E10 RON95 sale ahead of schedule . https://en.vietnamplus.vn/energy-giants-work-hard-to-roll-out-e10-ron95-sale-ahead-of-schedule-post339914.vnp   VietnamPlus. (2026). Vietnam cuts fuel taxes to zero till April 15 to stabilise energy market . https://en.vietnamplus.vn/vietnam-cuts-fuel-taxes-to-zero-till-april-15-to-stabilise-energy-market-post340027.vnp   Lao Động Newspaper. (2026). Báo cáo phương án chỉ đạo điều chỉnh giá xăng dầu đang xin ý kiến là bí mật nhà nước . https://news.laodong.vn/thoi-su/bao-cao-phuong-an-chi-dao-dieu-chinh-gia-xang-dau-dang-xin-y-kien-la-bi-mat-nha-nuoc-1674725.ldo   Bloomberg. (2026, March 16). Rising diesel prices are wreaking havoc in soybean giant Brazil . https://www.bloomberg.com/news/articles/2026-03-16/rising-diesel-prices-are-wreaking-havoc-in-soybean-giant-brazil   Bloomberg. (2026, March 17). Goldman says oil’s biggest shock to hurt refined products most . https://www.bloomberg.com/news/articles/2026-03-17/goldman-says-oil-s-biggest-shock-to-hurt-refined-products-most   Bloomberg. (2026, March 17). UK petrol prices surge to highest in 18 months amid Iran war . . https://www.bloomberg.com/news/articles/2026-03-17/uk-petrol-prices-surge-to-highest-in-1-1-2-years-amid-iran-war   The Guardian. (2026, March 26). Australia urged to swap diesel for electric buses as fuel costs soar . https://www.theguardian.com/environment/2026/mar/26/australia-electric-buses-transition-from-diesel-fuel-crisis   Bloomberg. (2026, March 24). Ireland announces energy support package to ease Iran war impact . https://www.bloomberg.com/news/articles/2026-03-24/ireland-announces-energy-support-package-to-ease-iran-war-impact   Bloomberg. (2026, March 20). Gas prices are high, but so is the cost of diesel . https://www.bloomberg.com/news/articles/2026-03-20/gas-prices-are-high-but-so-is-the-cost-of-diesel?srnd=homepage-asia

Over the past decade, the environment in which companies operate has become steadily more complex. Rather than facing isolated disruptions, many have had to adapt to a combination of rising interest rates, evolving supply chains, geopolitical uncertainty, and faster technology cycles. Together, these factors have made volatility less of an exception and more of an ongoing condition. In this context, M&A remains a key path to growth, but the margin for error is narrower. Large, high-stakes transactions are harder to execute and integrate, and the consequences of getting them wrong are more pronounced. As a result, the question for leaders is increasingly practical: “How to continue growing through M&A without relying on a few decisions that have to be right.” One answer, supported by long-term data conducted by Mckinsey (2023), is to focus less on individual deals and more on how value is built over time. Companies that consistently outperform tend to follow a programmatic approach, executing a series of smaller deals that, while modest on their own, accumulate into meaningful scale. It delivers higher returns with lower risk through compounding and discipline. This article will then cover three areas: the case for programmatic M&A and its performance advantage; M&A strategy effectiveness across industries an d contexts , and the key drivers of success. Programmatic M&A Definition and Performance Advantage According to the KPMG 2026 M&A Outlook, despite uncertainty, global M&A activity regained momentum through 2025. Rather than broad‑based volume growth, deal activity is increasingly concentrated among organizations that are deliberately pursuing programmatic transactions , a series of smaller, strategically aligned deals that together advance long‑term objectives and reflect clear strategic intent. Planned M&A deal volume for 2026 – Source: KPMG Programmatic M&A refers to a disciplined strategy of executing many small-to-midsize acquisitions over time, rather than relying on occasional large, transformational deals. Individually, these transactions may appear modest. However, according to McKinsey (2023), collectively they represent a meaningful share of a company’s market capitalisation, typically 19% or more over multiple years. The emphasis is not on scale per deal, but on consistency, repetition, and strategic coherence. This approach mirrors a “portfolio” mindset: making multiple targeted bets, learning from each transaction, and continuously reallocating capital toward the most promising opportunities. In an environment defined by uncertainty and rapid change, this model allows companies to remain nimble while steadily building competitive advantage. The performance gap between programmatic acquirers and their peers is both consistent and significant. McKinsey’s analysis of 1,000 global companies over a ten-year period (2007–2017) shows that companies following a programmatic approach delivered +2.3% higher annual excess Total Shareholder Returns (TRS) compared with industry peers. Just as importantly, they achieved this with the lowest volatility of returns, suggesting not only superior performance, but greater predictability. Comparison of M&A strategies’ total return to shareholders metrics – Source: McKinsey (2012) By contrast, companies relying primarily on organic growth, often perceived as the safer path, consistently underperformed, delivering –1.6% excess TRS on average. Other approaches, including selective or large-scale acquisitions, also failed to match the consistency of outcomes. The long-term implications are substantial. In a sector growing at 5% TSR annually, a programmatic acquirer would, on average, generate 7.3%, while an organic-growth player would reach only 3.4%. Over a decade, this gap compounds into a roughly 50% difference in share price performance. There is also a clear “volume effect”: companies that execute a higher number of deals within a coherent strategy are more likely to achieve positive excess returns, reinforcing the value of consistency over episodic action. M&A Strategy Effectiveness Varies Significantly by Industry and Context While the case for a programmatic approach is compelling, there is no universally “correct” M&A strategy. Outcomes vary significantly depend ing on industry structure, growth dynamics, and how deals are executed. Based on Mckinsey analysis of 1,000 global companies, TSR outcomes vary by indus try, but programmatic M&A consistently outperforms with more stable returns, while other strategies show greater variability and downside risk. Median Excess TRS by M&A Strategy and Industry, Global 1,000 Companies (1999–2010) - Source: McKinsey (2012) Large deal Large acquisitions, typically defined as transactions exceeding 30% of a company’s market capitalisation, can be highly effective, but only under the right conditions. They tend to work best in mature, slow-growth industries, where consolidation creates value by reducing excess capacity, improving efficiency, and strengthening market position. In these environments, scale matters, and integration, while complex, is less likely to disrupt innovation. However, in faster-growing sectors like high-tech, pharmaceutical and medical products, and telecom, the same deals often struggle. Lengthy integration processes can shift management focus inward, causing companies to miss critical product cycles or market inflection points. Historically, this has translated into underperformance, with large deals in such sectors delivering negative excess returns in some cases. Programmatic deals Across industries, programmatic M&A stands out for its consistency and resilience. Defined as executing more than two deals per year over a sustained period, with acquisitions cumulatively representing a meaningful share of market capitalisation, this approach delivers superior results regardless of sector. As noted earlier, programmatic acquirers outperform peers by +2.3% annual excess TSR, while also exhibiting the lowest volatility in performance. Its strength lies in adaptability. In dynamic and fast-evolving markets, where uncertainty is high and competitive advantage shifts quickly, the ability to make multiple smaller bets, and adjust course over time, becomes a critical advantage. McKinsey’s research on the 2,000 largest global companies highlights four distinct approaches, programmatic, large-deal, selective, and organic, and shows that while programmatic M&A consistently leads overall, the effectiveness of each model is highly context-dependent.  Comparison of M&A strategies’ total return to shareholders metrics – Source: McKinsey (2023) It further illustrates the performance gap across approaches. Programmatic acquirers achieve the highest returns, with +2.3% median excess TSR and +1.8% average, clearly outperforming all other strategies. In contrast, selective M&A hovers around neutralperformance (0% median, –0.2% average), suggesting limited value creation. More notably, large deals and organic growth underperform on average, with large deals delivering –0.1% median and –0.9% average TSR, while organic strategies show the weakest results at –1.6% median and –2.2% average. Overall, the trend highlights a clear gradient: as deal frequency and consistency increase, returns improve, reinforcing the advantage of a programmatic approach over episodic or non-M&A-driven growth models. Tactical deals A variation of this approach can be seen in tactical dealmaking, where companies pursue smaller, targeted acquisitions to build specific capabilities. While similar in deal size to programmatic M&A, the distinction lies in scale and intent. Tactical acquirers operate at a lower frequency, using M&A more selectively to fill capability gaps rather than as a primary growth engine. This model is particularly prevalent in technology and innovation-driven sectors, where companies acquire features, talent, or intellectual property to accelerate product development. These deals may not individually move the needle financially, but they play a critical role in maintaining competitive relevance. Selective dealmaking At the other end of the spectrum are companies that engage in selective or occasional M&A without a clear, repeatable strategy. These organisations tend to execute fewer deals over time and often lack a dedicated M&A capability. As a result, outcomes are inconsistent and difficult to predict, with performance driven more by external market conditions than by strategic intent or execution excellence. In many cases, this approach reflects opportunism rather than design, leading to weaker results compared to more systematic strategies. Key Drivers for Success Programmatic M&A What sets programmatic M&A apart isn't ambition, it's the consistency to execute a well-defined playbook, reliably and at scale. According to McKinsey (2023), programmatic acquirers distinguish themselves not through any single capability, but through a set of mutually reinforcing practices that compound in effect over time. These fall into three governing areas: how they plan, how they execute, and how they sustain their M&A capability over time. Plan with Precision Outperformance begins well before a deal is signed. Programmatic acquirers build a clear strategic thesis, one that defines precisely why and where M&A is needed, grounded in clear target focus, defined deal criteria, disciplined valuation, and a prioritizedpipeline. They revisit that view regularly, reallocating capital as priorities evolve. Underpinning this is a proactive approach to deal sourcing and a commitment to comprehensive business cases that go well beyond a go/no-go threshold. Boards and leadership teams are kept well-informed and well-prepared, enabling faster, more confidentdecisions when the right opportunity presents itself. Execute with Discipline A sound plan only creates value if execution follows through. Programmatic acquirers concentrate on a defined set of targets, maintain strong stakeholder alignment, and approach each deal with deliberate focus rather than reactive opportunism. That discipline extends through integration. Synergy targets are set at or above due diligence estimates, ownership is clearly assigned, and costs are tracked with genuine financial rigor. The outcome is measurable: programmatic acquirers are twice as likely as peers to deliver integration costs at least 20 percent below initial budget. Culture receives the same level of attention. Sustain Through People and Portfolio Discipline Sustaining M&A performance over time requires equal attention to two areas that are often underweighted: talent and portfolio management. On talent, programmatic acquirers treat retention as a risk mitigation priority from the due diligence phase onward. The most effective approaches combine financial incentives with direct leadership engagement and structured career development pathways, recognizing that the people within an acquired organization are frequently the core of its value. On portfolio, the best acquirers are equally clear about what they should not hold. A disciplined approach to divestiture, regularly identifying and exiting non-core assets, is what sustains the capital focus and organizational clarity needed to keep acquiring well over time. References KPMG. (2026). KPMG 2026 global M&A outlook . https://assets.kpmg.com/content/dam/kpmgsites/xx/pdf/2026/03/kpmg-2026-global-ma-outlook.pdf McKinsey & Company. (2023). How programmatic M&A fosters long-term resilience . https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/how-programmatic-m-and-a-fosters-long-term-resilience McKinsey & Company. (2023). The seven habits of programmatic acquirers . https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/the-seven-habits-of-programmatic-acquirers

Advanced industries encompass sectors such as automotive, aerospace, industrials, electronics, and semiconductors. Several structural forces are shaping M&A in these sectors globally. Geopolitical disruptions and supply-chain vulnerabilities are pushing companies to strengthen vertical integration and supplier control, while rapid advances in artificial intelligence and digital technologies are accelerating acquisitions aimed at securing new capabilities. While established industrial powers such as China, Japan, Germany, and the United States continue to lead advanced manufacturing, Southeast Asia is gaining attention as global companies diversify supply chains and expand production footprints. Yet advanced industries M&A activity in the region remains nascent, reflecting still-developing industrial ecosystems and limited large-scale transactions. This article overviews global advanced industries M&A, the drivers that could unlock future deal activity in Southeast Asia, and the current implementation within the region. Global Advanced Industries M&A: Strategic consolidation amid geopolitical and technological shifts According to McKinsey (2026), advanced industries M&A activity strengthened in 2025 as companies sought to navigate geopolitical disruption, supply-chain pressures, and accelerating technological change. Global deal value nearly doubled compared with the previous three years, reaching approximately $393 billion across 679 announced transactions, even as overall deal volume remained broadly stable. Asia-Pacific dominates global advanced industries M&A by volume, reflecting the region’s central role in manufacturing and supply chains, while deal values remain cyclical. While overall deal values declined after the 2021 peak, activity rebounded strongly in 2025, reflecting renewed strategic investment across the region’s manufacturing and technology sectors. Total M&A Advanced Industries Deal Value and Total Deal Volume by Region - Source: McKinsey Several of the top global deals were led by acquirers from the region, including Toyota Motor Corporation’s $38.5 billion acquisition of Toyota Industries and SoftBank Group’s $6.5 billion purchase of Ampere Computing. Chinese firms also featured among the largest transactions, such as Aluminum Corporation of China’s investment in Commercial Aircraft Corporation of China. Top 10 Global Advanced Industries Deals - Source: McKinsey Against this backdrop, Southeast Asia’s advanced industries M&A market remains comparatively early-stage. According to the 2026 M&A report by Bain & Company, strategic deal value in advanced manufacturing and services, the region’s largest M&A sector, moderated from $57 billion in 2024 to $50 billion in 2025 amid inflationary pressures and elevated interest rates. However, overall transaction volume remained broadly stable, with the number of deals valued above $30 million increasing slightly year on year.  While large-scale advanced industries transactions remain limited across Southeast Asia, the region’s expanding manufacturing base and growing integration into global supply chains suggest increasing strategic relevance. The next section therefore examines the current advanced industries landscape in Southeast Asia, highlighting the sector’s development and the conditions shaping future deal activity. The drivers that could unlock future advanced industries deal activity in Southeast Asia According to a white paper by Eurogroup Consulting (2025), Southeast Asia is rapidly evolving from a cost-efficient production hub into a technology-enabled manufacturing ecosystem, developments that could gradually support deeper industrial consolidation and M&A activity in the region. In the paper, Eurogroup Consulting highlights the Advanced Manufacturing (ADMAN) Assessment Tool developed by the World Economic Forum to evaluate global readiness for advanced manufacturing in Southeast Asia compared to other regions. The framework assesses regions across several dimensions, including industrial infrastructure, investment attractiveness, technology adoption, workforce capabilities, and innovation ecosystems, providing a comparative view of where advanced manufacturing is most likely to scale. The assessment identifies Southeast Asia as one of the most attractive regions globally for advanced manufacturing investment, ranking second only to Europe in overall readiness and investment attractiveness. While Europe leads in industrial readiness due to its mature manufacturing infrastructure, Southeast Asia scores particularly strongly in investment appeal and growth potential, reflecting the region’s expanding industrial base and favorable investment climate. Global Regional Comparison of Advanced Manufacturing Readiness and Investment Attractiveness  – Source: Euro Group Consulting Southeast Asia rapid emergence as an important hub for advanced manufacturing is supported by its strategic geographic location, expanding industrial base, and deepening economic integration. The region benefits from major multilateral trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which facilitate cross-border supply chains and strengthen its role in global manufacturing networks. Industrial growth across key economies, including Singapore, Malaysia, Thailand, Vietnam, and Indonesia, has reinforced this trajectory, with many countries moving up the manufacturing value chain and attracting increasing foreign investment. Singapore leads in IoT-enabled production, robotics, biotechnology, and smart factories, while Malaysia and Thailand continue to advance in electronics manufacturing, additive manufacturing, and automotive production. Governments are supporting this transition through initiatives such as the Smart Nation Initiative and Thailand Industry 4.0, alongside policies that attract foreign investment into high-value manufacturing sectors. Supported by a young and increasingly tech-skilled workforce, these developments position Southeast Asia as a cost-competitive and agile manufacturing alternative to more mature industrial regions, with growing potential to become a leading global advanced manufacturing center. The current implementation of advanced manufacturing within the Southeast Asia Across Southeast Asia, governments are increasingly deploying national industrial strategies to accelerate the adoption of advanced manufacturing technologies and upgrade traditional production sectors. These policies aim to strengthen competitiveness, attract foreign investment, and position the region within higher value segments of global supply chains. Singapore remains the region’s most advanced manufacturing ecosystem. Manufacturing 2030 initiative under Singapore’s Industry Transformation Map framework, the government aims to increase manufacturing value-added by 50% by 2030, focusing on high-value sectors such as semiconductors, biomedical sciences, and precision engineering. The initiative is complemented by digital transformation programs such as the Smart Nation Initiative, which promotes the adoption of technologies including IoT-enabled production, robotics, and smart factories. Other Southeast Asian economies are pursuing similar industrial upgrading strategies. Thailand has introduced the Thailand 4.0 model to transition its economy toward higher value-added manufacturing through automation, digitalization, and innovation. The government’s investment promotion strategy (2023–2026) prioritizes sectors such as electric vehicles, electronics, automation, and aerospace, supported by fiscal incentives including corporate tax exemptions and duty-free imports for machinery and raw materials.  Indonesia is advancing the Making Indonesia 4.0 roadmap, which focuses on modernizing five priority industries, food and beverage, textiles, automotive, electronics, and chemicals, that collectively account for around 60% of the country’s manufacturing GDP. The government is supporting this transformation through investments in industrial parks, digital infrastructure, and workforce development initiatives such as the PIDI 4.0 innovation hub. Malaysia is also accelerating industrial upgrading through the New Industrial Master Plan 2030, which targets a 60% increase in manufacturing value-added to approximately US$138 billion and the creation of 1.2 million jobs. The strategy prioritizes high-tech sectors such as semiconductor fabrication, integrated circuits, and electric vehicles, supported by the Industry4WRD policy that promotes automation, digitalization, and advanced manufacturing adoption. Vietnam’s readiness for advanced manufacturing continues to improve, although several ADMAN pillars remain in the early stages of development relative to regional innovation leaders. Manufacturing remains central to the economy, contributing over 20% of GDP and continuing to attract strong foreign direct investment, particularly in electronics and high-tech industries. To accelerate its transition toward Industry 4.0, Vietnam has introduced national strategies aimed at strengthening innovation and digital capabilities. The country’s 4IR strategy targets a top 40 ranking in the Global Innovation Index, universal broadband access for businesses, and expansion of the digital economy to around 30% of GDP. Complementary policies focus on increasing firm-level innovation adoption and raising R&D investment toward 2% of GDP. Supporting initiatives include the development of high-tech industrial parks, investments in logistics and digital infrastructure, and the establishment of innovation institutions to strengthen the technology ecosystem. These efforts have helped attract major global manufacturers such as Samsung Electronics, Intel, Foxconn, and LG Electronics, reinforcing Vietnam’s role as an emerging technology-enabled production base within global supply chains. Comparative Assessment of Six Southeast Asian Countries on Advanced Manufacturing (ADMAN) Readiness, Investment Attractiveness, and Industrial Progress – Source: Euro Group Consulting Future Outlook Southeast Asia offers a diverse and complementary landscape for advanced manufacturing investment, with multiple entry routes including greenfield investment, joint ventures, strategic partnerships, and M&A. Global companies such as BYD, Infineon Technologies, and Qualcomm increasingly combine innovation hubs and scalable production bases across the region to strengthen both operational efficiency and market reach. This diversity allows investors to align strategies with national strengths. Singapore and Malaysia offer strong innovation and semiconductor ecosystems, while Thailand, Vietnam, and Indonesia provide scalable manufacturing platforms supported by competitive costs and expanding industrial infrastructure. In practice, many firms adopt hybrid models—locating R&D in innovation hubs while building large-scale production in cost-competitive markets. Despite these favorable structural conditions, M&A activity in advanced manufacturing across Southeast Asia remains relatively modest today, particularly in deep technology and industrial automation segments y. However, as manufacturing capabilities deepen, supply chains diversify, and technology adoption accelerates, the foundations for greater consolidation and strategic investment are gradually emerging, positioning the region as a nascent M&A market poised for growth.  References: Eurogroup Consulting. (2026). Rising tides in the East: How Southeast Asia is transforming into the global hub of advanced manufacturing . https://eurogroupconsultingmea.com/how-southeast-asia-is-transforming-into-the-global-hub-of-advanced-manufacturing/ Bain & Company. (2025). M&A report: Global mergers and acquisitions insights . https://www.bain.com/insights/topics/m-and-a-report/ McKinsey & Company. (2026, February 13). Advanced industries: Geopolitics, economics, and technology drive M&A . https://www.mckinsey.com/capabilities/m-and-a/our-insights/advanced-industries-geopolitics-economics-and-technology-drive-m-and-a

On 24 October 2025, VinVentures Investor Night 2025 was held at Vinpearl Landmark 81, Ho Chi Minh City. This exclusive gathering brought together 60 representatives from notable investors, partners, and ecosystem leaders from across the region, fostering open dialogue and deeper connections within Vietnam’s innovation and private capital landscape. The event embodied the spirit of collaboration and long-term partnership, providing a setting for meaningful exchange of insights and perspectives on emerging opportunities across technology, investment, and entrepreneurship in Vietnam and beyond. VinVentures Investor Night 2025 brought together 60 representatives from notable investors, partners, and ecosystem leaders from across the region We are deeply grateful for the presence and support of our distinguished guests, whose engagement and shared vision continue to inspire VinVentures in our mission to accelerate innovation and shape the future of Vietnam’s startup ecosystem.  The event embodied the spirit of collaboration and long-term partnership If you’re a founder building transformative technology and seeking strategic partnership, we invite you to apply to collaborate with VinVentures here:  https://www.vinventures.net/application

On May 29, 2025, Venture Forum 2025 was held in Hanoi, co-hosted by VinVentures and the National Innovation Center (NIC). Under the theme “Redefining Capital,” the forum brought together an esteemed group of 200 leaders from government agencies, financial institutions, venture funds, startups, and corporate partners. Mr. Vo Xuan Hoai, Vice Director of the National Innovation Center (NIC), gave remarks at the event. For the first time, three of Southeast Asia’s top venture debt institutions: Genesis Alternative Ventures, InnoVen Capital, and January Capital - gathered at a forum in Vietnam to unlock new capital pathways and expand funding access for local startups. Over 200 leaders gathered at Venture Forum 2025 to explore new models of capital and collaboration. Ms. Tue Lam, CEO of VinVentures, presented insights on the industry and delivered remarks at the event. Panel Discussion 1 – “When Banks Think Like VCs” Moderated by Mr. Hai Nam Bui, CEO of SoBanHang, this session explored how financial institutions can evolve from traditional lenders into strategic innovation partners, highlighting the potential of venture arms, policy alignment, and tech-driven engagement models. Panel 1: “When Banks Think Like VCs” Session 2 – “Rethinking Venture Debt in Southeast Asia” Moderated by Ms. Ngoc Nguyen, Deputy Editor of DealStreetAsia Vietnam, this discussion emphasized how venture debt can serve as a complementary financing tool, with experts underscoring the importance of sound governance, credit readiness, and long-term planning. Panel 2: “Rethinking Venture Debt in Southeast Asia” Session 3 – “Fintech’s Role in Expanding Access to Capital” Moderated by Mr. Nam Doan, Principal at ThinkZone Ventures, the session showcased how fintech solutions are expanding access to finance, with founders sharing how trust, technology, and user-centric design can deliver inclusive services for underserved communities. Panel 3: “Fintech’s Role in Expanding Access to Capital” We extend our gratitude to all speakers, guests, partners, and media agencies whose participation made Venture Forum 2025 more than just a dialogue — it became a milestone for collaboration in shaping a more connected, resilient, and innovation-led ecosystem in Vietnam and Southeast Asia. As part of VinVentures’ core value of partnership, the forum reaffirmed our role as a connector of capital, ideas, and innovation across the region. 👉  To explore media coverage of the forum, please visit : 🔗 VnEconomy 🔗 Baodautu 👉 Interested in driving innovation with VinVentures? Share your venture with us   HERE .

Source:   Vingroup News, VinES partners with StoreDot to accelerate the development of extreme fast-charging (XFC) batteries ,  April 2023. In April 2023, VinES Energy Solutions, a member of Vingroup, announced a joint development agreement with StoreDot, an Israeli company known for pioneering extreme fast-charging (XFC) battery solutions for electric vehicles. Image source: Vingroup This collaboration builds upon VinES’s earlier strategic investment in StoreDot’s Series D funding round in January 2022, and marks an important milestone in advancing battery innovation within the Vingroup ecosystem. Under the agreement, VinES and StoreDot will co-develop XFC battery cells in multiple form factors, laying the groundwork for mass production and commercial deployment. StoreDot will license and share its proprietary XFC technology, while VinES will contribute its expertise in battery form-factor development, manufacturing, validation, and supply chain operations. The first generation of commercial-ready XFC battery cells is expected to launch in 2025, with VinFast vehicles set to be among the earliest adopters. These batteries aim to drastically reduce charging times and improve user experience, helping remove one of the major barriers to widespread EV adoption. StoreDot’s technology roadmap includes its “100inX” vision — delivering 100 miles of range in 5 minutes by 2024, in 3 minutes by 2028, and in 2 minutes by 2032. This roadmap, combined with VinES’s manufacturing and industrialization capabilities, positions the partnership to play a leading role in the future of electric mobility. VinVentures now oversees this investment, reflecting our empowerment value — giving startups the resources and strategic partnerships they need to turn bold ideas into real-world impact. Interested in driving innovation with VinVentures? Share your venture with us   HERE .

Source:   VinFast Press Release, VinFast partners with and invests in prologium for solid-state batteries development, July 2022. In July 2022, VinFast announced a multi-million-dollar investment in ProLogium, a global leader in next-generation solid-state battery technology, through a Vingroup-affiliated company. The strategic partnership is designed to strengthen VinFast’s long-term battery supply chain and advance its mission to deliver smart, high-performance electric vehicles globally. Image source: VinFast As part of this collaboration, VinFast and ProLogium signed a Memorandum of Understanding (MoU) outlining joint efforts in developing battery pack designs tailored to VinFast’s electric vehicle (EV) specifications. The collaboration will prioritize performance, safety, and sustainability, leveraging ProLogium’s proprietary solid-state battery technology. Under the agreement, ProLogium will begin supplying solid-state battery cells to VinFast as early as 2024, drawing from its first large-scale manufacturing facility expected to launch in 2023. A significant portion of the plant’s capacity will be allocated to serve VinFast’s production needs. The two companies are also exploring the potential for a joint-venture battery factory in Vietnam. Solid-state batteries are considered a breakthrough in EV technology, offering improvements in safety, energy density, fast-charging capability, weight, recyclability, and lifespan. This partnership marks a key step in VinFast’s strategy to secure access to advanced battery technology, meet growing global demand, and expand its smart mobility offerings. VinFast’s investment in ProLogium builds on a broader battery ecosystem developed by Vingroup. In 2021, Vingroup invested over 4 trillion VND to establish the VinES battery plant in Ha Tinh, Vietnam, producing battery packs and cells for VinFast EVs. Most recently, VinFast announced the construction of a $2 billion manufacturing facility in North Carolina, USA, for electric cars, e-buses, and related industries. VinVentures now oversees this investment, reflecting our role in advancing Vingroup’s pioneering spirit and deeptech synergies across the ecosystem. Interested in driving innovation with VinVentures? Share your venture with us HERE .