Electronics Supply Chain Weekly Digest 1-26-23.
DATAPOINT OF THE WEEK: China passenger car production and sales hit 26.1M and 26.0M in 2023, increasing 8%/6% respectively, and surpassing the previous record of 24.2M/24.7M units in 2017, according to data from the China Association of Automobile Manufacturers (CAAM).
NEV production in sales topped 9.5M for the year, increasing 36%, and accounting for 37% of share. China exported 4.16M passenger cars in 2023, a 65% increase Y/Y driven by strong demand for cars from Russia. Passenger NEVs exports increased 74% to 1.13M. Excluding exports China passenger car consumption increased 4.2% to 21.9M which compares to the peak of 2017 of 23.8M.
Commercial vehicle production and sales were also strong in 2023 at 4M recovering from the 3.2M trough in 2022, but still below the peak of 5.2M reached in 2020. According to CAAM passenger and commercial car sales are forecasted to increase 3%/4% in 2024 while NEV sales are forecast to increase 21% Y/Y to 11.5M while export units are forecasted to increase by 12%.
Headlines:
Auto
- Foreign auto makers boosting exports out of China due to loss of domestic market share
- China planning to take action to rein in overcapacity in its domestic EV market
- China NEV sales are tracking down 21% M/M in the first 3 weeks of January, or weaker than CPCA’s target of down 15% for the month
- Ford is reducing F150 EV production to one shift in Michigan
- Chinese EV firms will ‘demolish’ rivals without trade barriers says Elon Musk
- The US administration vetoes law blocking EV charging stations’ ‘Buy America’ waiver
- Polestar planning to cut 15% of its workforce citing weaker market environment
- Nidec cuts profit forecast as Chinese EV competition ramps up
- New Auto sales in the US are expected to slip in January on signs of cooling demand for EVs
- Porsche CFO says Europe may delay combustion-engine ban due to slowdown in EV consumer adoption
- Tesla sees significantly slower growth in 2024; highlights plan for entry-level EV arriving by mid-2025
- Tesla CEO Musk: Chinese EV firms will ‘demolish’ rivals without trade barriers
- ZF planning to cut 12K jobs and close two factories in Germany citing investment and market changes
IP&E
- Murata details impact from Jan 3 earthquake in Japan; three factories remain non-operational
Semiconductors
- AMD issues discontinuation statement for legacy Xilinx FPGA and CPLD product families
- Infineon and Wolfspeed expand and extend multi-year 150mm SiC wafer supply agreement
- Infineon announced new multi-year agreement with GlobalFoundries for the supply of 40nm Auto MCUs
- Intel’s revenue outlook disappoints, projecting 1Q softness in datacenter and FPGAs
- Intel and UMC Announce New Foundry Collaboration for 12nm chips
- Semco delays mass ABF substrate production in Vietnam to 2H24
- ST Micro cuts 2024 outlook and guides 1Q below expectations on broadening weakness in Industrial and moderation in Auto demand.
- Chipmakers among 15 US firms eyeing $8 bln Vietnam investment
- Samsung Foundry delaying mass production in Taylor, Texas to 2025 from 2H24 previously
- Texas Instruments 1Q outlook disappoints signaling continued weakness in semi demand; Automotive demand seen entering a correction period
- TSMC CEO admits the concerns of overcapacity in mature edge technology is valid
- TSMC’s second fab in Arizona delayed as US grants remain in flux
- Western Digital sees improving NAND and HDD fundamentals; guides to 10% Q/Q revenue growth in 1Q
Other
- SolarEdge is laying off 16% of its global workforce
- 4Q smartphone shipments in China declined 1% Y/Y; 2024 to see moderate recovery says Canalys
