Electronics Supply Chain Weekly Digest 3-14-25.
DATAPOINTS OF THE WEEK: Passenger car retail sales in China totaled 1.39M in Feb, up 26% Y/Y but down 22.8% M/M, according to the China Passenger Car Association (CPCA). The decline from Jan reflects a seasonal slowdown due to the Chinese New Year.
NEV retail sales reached 686K units, rising above preliminary estimates of 600k. NEVs increased 79.7% Y/Y with BEV sales of 427K units, up 94.4% Y/Y and PHEV up 55% Y/Y. NEV penetration stood at 49.5%, up 15 percentage points Y/Y and 8 percentage points M/M.
NEV exports totaled 118K units, up 27.8% Y/Y but down 15.2% M/M, contributing 33.9% of total passenger car exports. YTD retail sales have increased 1.6% Y/Y for all passenger vehicles and 35% for NEVs, aligning with or slightly outperforming CPCA’s forecast of 2% growth in overall shipments and 20% growth in NEVs.
Headlines:
Auto/Transportation
- BMW plans to absorb US tariffs on Mexican imports, warning tariffs could reduce 2025 earnings by $1.09B
- Ford to inject up to $4.8B to shore up cash-strapped German unit
- Jaguar Land Rover shelves plan to build EVs at Tata’s India plant
- Mercedes to develop smart cars for global markets with China’s Hesai lidar, according to Reuters
- Mercedes debuts entry-level EV sedan targeting Tesla
- Drivers frustrated with latest car tech as satisfaction drops, according to Strategic Vision
- Tesla plans 20% lower cost Model Y to defend China share
- Tesla products now excluded from British Columbia EV charger rebates in response to US tariffs
- EPA revisits Biden’s vehicle emissions rules amid pushback from Trump administration and Congress
- EPA’s reversal of stricter vehicle emissions rules negatively impacts European truck makers’ sales expectations
- Some US car buyers rush purchases ahead of potential tariff hikes
- Volkswagen brand delays profitability target to 2029 amid EV struggles, cost cuts, and trade challenges
Datacenter
- AI data center growth strains US electrical grid, raising concerns over future demand and supply challenges
- Global server shipment poised to rise on year in 2025, but at slower pace than 2024 says DigiTimes
Industrial
- ABB to invests $120M in US manufacturing, expanding low voltage electrification capacity
- US tariffs create uncertainty in aviation sector, raising concerns over rising costs and order backlogs
- Boeing delivers 44 aircraft in Feb, sees net gain of 5 orders despite cancellations
- China’s CATL sees slowest profit growth in six years
- Northvolt files for bankruptcy in Sweden, ending Europe’s challenge to Chinese battery giants
IP&E
- China grants more licenses for copper smelters to export tax-free, boosting overseas sales
Semiconductors
- Broadcom CEO Hock Tan dismissed rumors of acquiring Intel’s design division, citing his focus on AI and VMware
- CATL expands into semiconductors, invests in Silang Technology to boost smart EV performance
- China advances in EUV lithography with new LDP technology, aims for production by 2026
- Semi Eq. market forecasted to have exceeded $110B in 2024, with ASML leading and Chinese firms gaining ground, according to CINNO
- GlobalFoundries explores manufacturing partnerships in China
- Infineon incorporates Nvidia Tao AI models on PSoC Edge microcontrollers
- Intel appoints Lip-Bu Tan as CEO to revitalize company and strengthen foundry business
- onsemi announce its plan to lay off 170 employees in Czech Republic as part of restructuring, despite $2B plant investment
- Qualcomm to acquire Edge Impulse, boosting AI and IoT capabilities with edge AI platform integration
- Samsung reviews chip design and foundry businesses, considers restructuring amid mounting losses and competition with TSMC
- Texas Instruments has launched the world’s smallest MCU
- US to hold hearing on tariffs for China’s mature chips, but analysts warn it may hurt US firms more than curb Chinese output
- Wolfspeed to lay off 180 employees amid slowing EV demand
Consumer/Other
- EU to impose counter tariffs on $28B worth of US goods, targeting steel, aluminum, and agricultural products
- Global smartphone shipments to grow 2.3% in 2025, driven by Android demand and device upgrades, according to IDC
- Global smartphone production rises 9.2% in 4Q24, with Apple leading growth; 2025 growth expected to slow, according to TrendForce
- US container imports rise 4.7% Y/Y in Feb, driven by strong demand and preemptive imports ahead of new tariffs
