Electronics Supply Chain Weekly Digest 3-28-25.
DATAPOINTS OF THE WEEK: S&P reported March Eurozone mfg PMI up ticked to 48.7, from 47.6 in Feb, with manufacturing production increasing for the first time in two years.
Germany’s PMI showed a similar improvement to 48.3 in March from 46.5 in Feb, marking a 31-month high. US PMI dropped into contraction to 49.8 after being 52.7 in Feb, reflecting a three-month low.
Additional downward pressure came from new order growth decelerating to a marginal pace following two months of robust gains, alongside a reduction in supplier delays. Furthermore, cost pressures intensified with manufacturing input costs reaching a 31 month high tied to tariffs and increased staffing costs.
New car registrations in Europe declined 3.1% Y/Y in Feb, marking the fourth month of Y/Y declines in the last six months, following a 2% Y/Y decrease in Jan, according to ACEA data. Notably, the bloc’s major markets saw declines, with Italy (-6%), Germany (-4.6%), and France (-3.3%) though Spain conversely recorded an 8.4% increase.
BEV sales surged 16.3% Y/Y, a deceleration from the 37.2% Y/Y growth seen in Jan. BEVs now account for 15.8% of the market share, up from 11.9% in Feb 2024. PHEV sales declined 2.1% Y/Y after two months of Y/Y growth in Dec and Jan. HEV sales continue to grow with 18.2% Y/Y growth in Feb. Meanwhile, ICE vehicle registrations saw its decline in sales slow down to a 5.9% Y/Y decline in Feb after declining 12.6% Y/Y in Jan.
Headlines:
Auto/Transportation
- BYD sets 2025 sales target of 5.5M vehicles, including 800k for overseas markets, according to local media reports
- China NEV retail at 622,000 in Mar 1-23, up 40% from same period last month, says CPCA
- EU investigates BYD’s Hungary plant for potential unfair Chinese subsidies, FT reports
- European auto suppliers body calls for solutions to US tariffs, not reciprocal tariffs
- China’s Leapmotor announced its aims for Europe smart-driving rollout in 2026
- Tesla announces it has halted driving-assistance software trial in China, pending approval
- Tesla’s sales and market share in Europe drop again in February, according to ACEA
- Tesla announces plans to launch in Saudi Arabia as Musk and the kingdom mend relations
- Turkey says Chery Auto’s partners to invest $1B in plant to make 200k cars/year
- Car-carrying ships see increased shipments to US as companies front-load ahead of tariffs, according to Esgian
- Trump finalizes 25% tariff on foreign-made cars, trucks, and auto parts, effective April 2
- Cox lowers 2025 new-vehicles sales forecast to 15.6M units, expects March sales to decline 1.4% Y/Y
- VW announces partnership with Valeo and Mobileye to enhance its assisted and autonomous driving capabilities
Datacenter
- China’s tech giants, Alibaba, Tencent, & Baidu, ramp up AI investments, says DigiTimes
- CoreWeave IPO could value firm at $27.4B, but faces risks from customer reliance and debt, says Reuters
- Schneider Electric announces plan to invest $700M in US by 2027, boosting energy infrastructure for AI growth
IP&E
- Copper future contracts reach $5.23/pound amid tariff fears & halted Chile shipments, according to Bloomberg; Mercuria estimates 500k tons redirected to the US
- Codelco announces it is redirecting copper sales to US amid tariff probe, CEO remains optimistic
Semiconductors
- China advances chipmaking, reducing reliance on EUV with DUV 5nm tech, Bloomberg reports
- H3C warns of Nvidia H20 chip shortage in China, citing supply chain uncertainty and geopolitical tensions, according to Reuters
- China to lead chipmaking equipment investment in 2025 at $38B, despite 24% Y/Y drop, SEMI reports
- EU lawmakers urge Commission to launch AI chip support program, citing slow progress under 2023 Chips Act
- Germany’s chip subsidy program faces €6B funding request, with only €2B available, raising concerns over delays, Bloomberg reports
- Malaysia to tighten semiconductor regulations under US pressure to curb AI chip flow to China, says FT
- Micron expected to raise prices by 11% due to strong AI demand, TrendForce reports
- Microchip announces plans to sell Tempe, Arizona wafer fab, transferring production to Oregon and Colorado facilities
- US reciprocal tariffs may exclude chips, easing pressure on semiconductor industry, reports WSJ and Bloomberg
- Wolfspeed faces financial challenges, CEO change, and risks losing $750M CHIPS Act grant, says Reuters
Consumer/Other
- Canada announces threatening trade actions if Trump imposes 25% tariffs on cars
- China warns of “resolute countermeasures” if US imposes new tariffs, escalating trade tensions, according to local media statement
- China’s National Development and Reform Commission has announced plans to invest $138B in robotics
- Trump’s US shipbuilding fee plan could harm domestic operators and disrupt supply chains, industry warns, according to Reuters
- US announces it has added 11 Chinese firms and Taiwan’s Inspur unit to export restrictions list over military-linked AI development
