Electronics Supply Chain Weekly Digest 4-17-26
DATAPOINT OF THE WEEK: TSMC announced its 1Q26 net profit hit a record $18.06B, up ~50% Y/Y, with gross margin expanding to 66.2% as HPC/AI demand accounted for 61% of revenue.
The company guided 2Q revenue of $39–42B and set 2026 capex at $52–56B, while flagging that 2nm production and overseas expansion could each dilute full-year gross margins by 2%–3%.
TSMC also announced it has begun 2nm mass production in 1Q26 at its Hsinchu and Kaohsiung sites and is simultaneously scaling 3nm capacity across three regions: Taiwan in 1H27, its second Arizona fab in 2H27, and a second Japan facility in 2028. The company’s next-gen A14 node, targeting 2028 mass production, promises a 25–30% power reduction alongside a nearly 20% chip area shrink.
Headlines:
Auto/Transportation
- Audi reported 1Q deliveries fall 6.1% Y/Y as NA volumes drop 27% and China slides 12%, according to Reuters
- BYD purchase queries surge in Germany in 1Q26, driven by affordability and rising fuel prices, as reported by Reuters
- Brazil fires top labor inspector for adding BYD to slavery “dirty list” against minister’s orders, per Reuters
- Changan Automobile weighing new auto plant in Spain’s Aragón region, no decision yet, per Bloomberg
- China weighs curbs on solar manufacturing equipment exports to US, threatening Tesla’s $2.9B supply plans, according to Reuters
- Geely unveils i-HEV AI-hybrid platform with 105 mpg fuel efficiency to challenge Toyota
- Germany pushes EU to ease auto emissions rules, exempting excess output above 90% target after 2035
- Stellantis global shipments rise 12% in 1Q, led by NA Jeep and Ram deliveries
- Stellantis in talks to revive Dongfeng partnership for joint production in Europe and China, according to Bloomberg
- Volkswagen launches ID. UNYX 08 EV in China at $33.7K, the first model co-developed with Xpeng
Datacenter
- AWS project Houdini slashes datacenter build time from 15 weeks to 2–3 weeks using factory-built modular skids, according to Business Insider and Data Center Dynamics
- Microsoft takes over OpenAI’s Stargate Norway datacenter, adding 30K Nvidia Vera Rubin chips from Nscale, according to Bloomberg
Connectivity
- Credo Technology announced it has acquired DustPhotonics to build vertically integrated AI optical connectivity stack
- Molex announced it has acquired Teramount to bolster CPO fiber-to-chip connectivity stack
Industrial
- Boeing March deliveries dip to 46 jets as 737 MAX wiring repairs slow output
- Tesla Shanghai Gigafactory positioned as potential humanoid robot production hub, according to Nikkei Asia
Semiconductors
- Analog Devices opens backend facility in Thailand, adding wafer-level processing and chip-scale packaging
- Delta Electronics posts record $1.87B March revenue, up 38% Y/Y, on AI server power and liquid cooling surge
- Horizon Robotics unveils single-chip cockpit-driving fusion platform targeting $220–$586 per-vehicle savings
- Intel Foundry announced it has developed world’s thinnest GaN chiplet at 19 micrometers, achieving first-ever monolithic integration with silicon logic
- Nio targets to eliminate Nvidia chip spend with in-house 5nm silicon, aims to cut flagship part numbers from 1K to 400
- Qualcomm and Bosch expand automotive partnership to include ADAS, with first vehicles targeted for 2028
- SiFive raises $400M at $3.65B valuation to push RISC-V into AI datacenters
- Tesla completes AI5 chip tape-out, splits production between TSMC and Samsung with volume manufacturing expected in 2027, per ZDNet Korea/Sedaily
- YMTC plans two additional fabs that would more than double capacity, expands into DRAM, according to DigiTimes
Consumer
- Apple iPhone shipments in China surge 20% in 1Q, according to data, according to Counterpoint Research
- Apple expected to capture nearly 20% share of foldable smartphone market in 2H26, according to TrendForce
- Meta raises Quest VR headset prices by up to $100, citing rising memory chip costs