Electronics Supply Chain Weekly Digest 4-18-25.
DATAPOINT OF THE WEEK: President Donald Trump said Thursday that he expects to reach a trade deal with China but offered no details on how stalled negotiations might resume.
China’s commerce ministry urged the US to ease its “extreme pressure” and show mutual respect before talks can proceed. Despite easing tariffs on other countries, Trump maintained steep import levies on Chinese goods, totaling 145%.
The two sides remain at a standoff over how to reinitiate discussions.
Headlines:
Auto/Transportation
- Canada offers conditional tariff relief to automakers amid US trade tensions
- Ford leans on China exports as local sales falter and US demand grows
- Global EV sales up 29% Y/Y in March, but US growth lags on tariffs and policy shifts
- Honda shifts US-bound Civic hybrid production from Japan to Indiana
- Hyundai suspends EV production in South Korea amid weak demand and US tariffs
- Nissan cuts Rogue SUV production in Japan due to US tariffs
- Toyota weighs adding US production of new RAV4 in response to tariffs, sources say
- VW unveils first in-house automated driving system through CARIZON joint venture with Horizon Robotics
- VW freezes vehicle prices through May to ease consumer concerns amid tariff fears
- Xiaomi delays YU7 EV launch after fatal crash raises safety concerns in China
Industrial
- Airbus sticks to 2025 guidance but warns of trade tensions and supply chain issues
- China halts Boeing jet deliveries in response to US tariffs, says Bloomberg
- US manufacturing shows modest 0.3% Y/Y output growth in March, but tariffs and uncertainty weigh on outlook
IP&E
- Yageo sees 1Q revenue rise on restocking demand, expects margin gains in 2Q
Semiconductors
- AMD to produce key chips at TSMC’s new Arizona plant, marking first AMD product to be manufactured in US
- ASML faces weaker 1Q orders, citing US tariffs and market uncertainty
- Bosch expands partnership with Arrow to distribute automotive semiconductors in EMEA
- US-China tariff conflict has led suppliers to stop quoting pricing and halting operations in China
- Trump’s proposed tariffs could cost US semiconductor equipment makers over $1B annually
- Huawei accelerates development of Ascend 920 chip to counter Nvidia’s H20 export ban in China
- Intel sells 51% stake in Altera to Silver Lake for $4.46B to streamline operations
- Nvidia to take $5.5B charge as US export restrictions impact H20 sales to China, AMD faces similar challenges
- onsemi halts $1B expansion in South Korea, shifts focus to Europe amid declining EV demand
- onsemi cancels $6.9B bid for Allegro MicroSystems amid market downturn and Allegro board resistance
- Samsung delays Texas plant launch to 2027 amid weak demand
- South Korea boosts semiconductor support to $23.25B amid rising competition and policy uncertainty
- Taiwan to simulate impact of US tariffs on semiconductor industry and seek discussions with Washington
- Texas Instruments unveils new automotive lidar, clock, and radar chips to enhance ADAS capabilities
- TSMC forecasts strong 2025 outlook with AI chip revenue doubling despite US tariff threats
- TSMC accelerates US expansion with second Arizona fab complete, plans for additional fabs and international growth
- TSMC delays groundbreaking of second Japan fab as it incorporates advanced technologies and adjusts to market changes
- Xiaomi restructures mobile division for in-house SoC launch with “Xuanjie” chip to rival Qualcomm’s Snapdragon 8 Gen 2
Consumer/Other
- Ongoing tariff war leads to consumer electronics price hikes, affecting Gaming GPUs, PlayStation 5, and Nintendo Switch 2
- EU-US trade talks stall as US rejects tariff reduction proposal, EU prepares countermeasures
- Global smartphone shipments rise 1.5% in 1Q25, driven by US tariff concerns and strong demand for new models
- US removes some tariffs on smartphones and electronics but signals potential new duties amid security review
- Trump administration pressures nations to limit trade with China in exchange for tariff reductions
- Trump orders national security probe into tariffs on US critical minerals imports to reduce reliance on China
US retail sales surge 1.4% in March as consumers rush to buy ahead of new tariffs, but concerns over stagflation loom
Source:
Edgewater Research
