Electronics Supply Chain Weekly Digest 3-15-24.
DATAPOINT OF THE WEEK: S&P reported February global Electronics PMI downticked to 47.9 from 48.8 in January signaling a sustained and more pronounced deterioration in operation conditions across the global electronics manufacturing sector.
A renewed decline in output was driven by a quicker fall in new work intake, leading to a reduction in purchasing activity and employment levels. New orders also at a faster pace M/M with declines across US, Europe and Asia. Post-production inventories held by electronics firms contracted for the eighth month in a row during February, though at the softest rate seen since October 2023.
Headlines:
Auto
- BYD launches new version of e2 hatchback with lower starting price
- China plans to cut downpayments for cars but analysts see limited boost
- China auto retail sales from March 1 to 10 up 4% Y/Y, NEV sales up 39% Y/Y
- China continues to urge EV Makers to buy local chips as US clash deepens, says Bloomberg
- EU Parliament compromises approving Euro 7 emission standard on extended timeline
- GM to resume sales of Chevy Blazer EV after software issues prompted a stop sale late last year
- Ford Focus plant in Germany halts output on supplier strike
- Fisker hiring restructuring advisors, preparing potential bankruptcy filing says Bloomberg
- Price reduction no longer benefits Tesla’s China sales says DigiTimes
- Tesla Model 2 may not fully ramp up until 2027, analyst says
- Tesla’s factory in Germany resumes operations following the loss of power in an arson attack last week
- Toyota, Panasonic, Nippon Steel, and Nissan agreed to biggest pay increase in 25 years
- Kia/Hyundai to recall 170K EVs over software problem in South Korea
- VW drops plans to build ID3 in Wolfsburg citing cost savings
- VW expects 3% rise in 2024 car sales amid gloomy economic outlook
- New auto prices held steady in February says Cox Automotive
- US Auto dealer sentiment upticks in 1Q but remains weak as profit and sales pressure replace inventory woes
- New auto inventory in the US increased 5% M/M and 52% Y/Y in Feb to the highest since Feb-21 with 10 brands now having more than 100 days of supply
- Xiaomi to start first EV shipments at the end of March
Industrial
- Schneider Electric to invest $140M in capacity expansion to support data center and infrastructure demand
Semiconductors
- US mulls blacklisting CXMT to curb China’s chip advance, Bloomberg says
- GlobalFoundries to cut jobs in Singapore and Taiwan regions, report says
- Top 10 global foundries’ revenue increased 8% Q/Q in 4Q driven by smartphone AP demand and AI
- Infineon launched first in the market 2000v CoolSiC MOSFET
- Intel survived bid to halt millions in sales to China’s Huawei
- Pentagon scraps plan to spend $2.5B on Intel grant
- Microchip announced universal backplane management family of controllers for data center
- NXP workers in the Netherlands preparing to strike for 24 hours after pay increase rejection
- Onsemi announced reshuffling of BUs with the formation of Analog and Mixed Signal Group
- Renesas delaying plans for regular pay increases by six months until October after laying off 200 to 300 people in November
- SK Hynix increasing spending on HBM capacity by $1B
- Silergy says customer inventory adjustments entering final stage
- TSMC set to win $5B in federal grants in the US
Other
- Global smartphone production increased 9% Q/Q and 12% Y/Y in 4Q
- Foxconn reported upside to 4Q profit and highlighted improved 2024 outlook due to booming AI demand
Source:
Edgewater Research
