Electronics Supply Chain Weekly Digest 2-23-24
DATAPOINT OF THE WEEK: S&P reported February US Flash mfg PMI of 51.5 vs 50.7 in January, reflecting the sharpest upturn since Sep 2022 with renewed growth in output and orders.
Despite stronger demand conditions, S&P notes Industrial companies continued to reduce their input buying, albeit at a slower pace. S&P also reported Eurozone flash mfg PMI of 46.1 vs 46.6 in January, reflecting an accelerating decline in output after the moderation seen in January and a sharper decline in new orders.
Output and new orders fell the most in Germany, where Feb flash PMI dropped to 42.3 from 45.5 in January.
Headlines:
Auto
- Audi union in Mexico agrees to salary hike, ending strike
- Price war in China’s passenger car market to remain fierce in 2024, says CPCA secretary-general
- Feb retail auto sales in China expected to decline seasonally by more than 40% M/M
- Signs of first casualties in China EV with HiPhi suspending operations for at least 6 months
- Global xEV sales increased 30% in 2023, projected to grow at the same rate in 2024 by TrendForce
- US to soften tailpipe rules, slow EV transition through 2030
- New car sales in Europe better than seasonal; BEV penetration down to a year low, ICE penetration up to 50% from 44% in Dec
- Mercedes delays Electrification goals, sees ICE in the line-up beyond 2030
- Rivian projects flat 2024 EV production; announces 10% workforce cut
- New car sales in Germany weaker than seasonal in January. xEV and BEV penetration down to Jan-23 low
- Toyota extends shutdown of two production lines after emission test irregularities
Industrial
- MLCC ceramic capacitor shipments to decline 7% Q/Q in 1Q says TrendForce
Semiconductors
- Fears of ASML equipment used for China military behind the Dutch government’s decision to restrict ASML sales
- ADI sees revenue bottoming 36% lower in Apr-Q before rebounding in July
- ADI and TSMC have entered into LTA for supply of key auto technologies from TSMC’s capacity in Japan
- ASE has bought two back-end facilities from Infineon
- US reportedly suspends permission for materials shipping to SMIC but states no plan to restrict sales of mature chips to China
- China firms cutting OLED DDI prices says DigiTimes
- GlobalFoundries to receive $1.5B subsidy from the CHIPS Act
- Intel rumored to receive $10B of subsidy from the US CHIPS Act
- Microsoft to use Intel’s foundry services for custom chip manufacturing
- Intel says Arrow Lake and Lunar Lake PC CPUs to be manufactured on TSMC’s 3nm process.
- US Department of Energy gives SK Siltron $544M loan to expand SiC wafer manufacturing in Michigan
- Nividia continues to set record results driven by robust AI demand
- Kioxia and Western Digital merger talks expected to resume in April
Other
- Foldable smartphone shipments to grow 11% in 2024 to 17.7m units says TrendForce
Source:
Edgewater Research
