Electronics Supply Chain Weekly Digest 3-7-24.
DATAPOINT OF THE WEEK: China Auto retail sales increased 17% in January and February combined compared to 2023, maintaining the trend of high teen growth from 2023, according to data from the China Passenger Car Association (CPCPA) The same applies for NEV sales which grew 37% YTD.
BEV sales increased 17%, below the 33% growth in 2023 while PHEV surged 76% YTD. CPCA notes sales in February slowed due to the timing of CNY but also due to renewed price aggression from OEMs which caused a wait-and-see approach from consumers.
That combined with wholesale by OEMs outpacing retail sales by 250k YTD has led to the Inventory warning index by the China Automobile Dealer Association to spike to 64, the third highest over the last 3 years. CPCA added China February exports rose 18% Y/Y to 298k units, with NEV accounting for 26% of the total. YTD exports have increased 33%, though notably NEV exports are flat Y/Y in January and February.
Auto
- BYD spearheads Chinese electric car push in Australia
- BYD starts construction on manufacturing complex in Brazil
- BYD and Xpeng add fuel to the fire in China with new price cuts this week
- EU moves closer to hitting China with tariffs on EVs
- EVs will be cheaper to produce than gas-powered vehicles by 2027, Gartner says
- Ford’s US auto sales rise 10.5% in February on SUV, hybrid demand
- February new car sales in Germany increased 5% Y/Y but BEV sales continue to struggle down 15% Y/Y
- Nissan and Fisker in advanced talks on investment, partnership
- Rivian announced smaller and more affordable R2 SUV and R3 crossovers with plans for production in 1H26
- Tesla in talks with Thailand for production facility, says government official
- Tesla shipments from its China factory declined 6% YTD driven by 31% decline in exports, partially offset by 26% increase in local sales
- Tesla production in Germany halted until the end of next week due to possible arson
- China gives green light to Stellantis-Leapmotor joint venture
- Stellantis extends slowdown at Turin plant due to weak demand
- Feb new car sales in Britain rose 14% helped by demand from businesses and fleet
Industrial
- Factory orders in Germany dropped sharply by 11% to start the year
Semiconductors
- AMD hits US roadblock in selling AI chip tailored for China
- BMW adopts ADI Ethernet technology in Automotive
- Broadcom reiterates full year outlook; sees $10B in AI chip sales
- China readies new $27B Chip Fund to counter US curbs
- Infineon announced its second-generation SiC MOSFET trench technology
- Intel close to receiving $3.5B subsidy to produce advanced chips for US military
- Marvell and TSMC expand cooperation to develop 2nm platform
- Kioxia plans to increase its NAND fab utilization to 90% in March 8, 2024
- China SiC substrate makers have begun lowering SiC substrate prices after CNY
- Global semi sales increased 15% Y/Y in January says SIA
- SMIC actively expanding 12 inch wafer capacity to meet Huawei’s 7nm needs
- Meta considering using Samsung Foundry for a portion of internal AI ASICs
- Vishay received UK government approval to purchase Newport Wafer Fab
- TI shifts 6 inch GaN process to 8 inch to reduce cost
- Tower Semiconductor plans three temporary shutdowns at Newport Beach site citing lower demand
- Western Digital names heads for flash memory, HDD units after split
- US urges allies to tighten China’s access to chip technology
Other
- Apple iPhone sales in China fell 24% in the first six weeks of 2024
- Smartphone units sales in China declined 7% in first six weeks of 2024 says Counterpoint
- Jabil to close its Vancouver operations
- CEOs gain confidence in US Economy nut bemoan onerous regulation says Business Roundtable survey