Electronics Supply Chain Weekly Digest 4-25-25
DATAPOINTS OF THE WEEK: New car registrations in Europe increased 0.3% Y/Y in March, while total 1Q25 registrations declined 1.4% Y/Y, according to ACEA data.
BEV sales continued its surge with its third straight month of double-digit growth with sales increasing 23.7% Y/Y in March. Overall, in 1Q25 BEVs increased 25% Y/Y and now account for 17.5% of the market, up from 13.2% in March 2024. PHEV sales increased 19.6% Y/Y in March with 64.6% M/M growth following Feb’s 0.3% Y/Y growth.
PHEVs grew 7% Y/Y in 1Q25. HEVs continued its strong growth with 24.3% Y/Y growth in March and 20% growth Y/Y in 1Q25. HEVs now account for 38% of the market, up from 30.7% in March 2024. The strong growth in EVs has resulted in an acceleration in the decline of ICE vehicle registrations. ICE sales declined 25% Y/Y both in March and 1Q25, and accounted for 38% of the market, down from 47% in March 2024.
S&P reported April Eurozone mfg PMI increased to a 27-month high of 48.7, up from 48.6 in March, and surpassed expectations for a decline to 47.5. In the face of tariffs, European manufacturing seems to be holding up better than expected as some countries may be benefitting from the changes in tariffs, which have targeted China above all.
However, Germany’s mfg PMI declined to 48.0 after reaching a 31-month high in March at 48.3. US mfg PMI increased to 50.7 in April from 50.2 in March, as new order growth ticked higher and longer lead timers were reported, though to a lesser degree than in March. Japan’s factory activity contracted for the 10th consecutive month in April with mfg PMI at 48.5.
Headlines:
Auto/Transportation
- BYD reshapes European strategy with hybrid push and executive hires from Stelantis after weak 2024
- CATL unveils fast-charging and sodium-ion batteries, eyes EV and eVTOL expansion
- Hyundai forms tariff task force, shifts production to US from Mexico and weighs more moves
- Nissan to invest $1.4B in China on hopes for rebound with EV push and faster execution
- Shanghai Auto Show spotlights Chinese EV leadership and global ambitions
- Toyota boosts US hybrid production with $88M West Virginia investment
- Trump expected to ease some auto part tariffs, but core 25% duty remains, according to the Financial Times
- US April auto sales steady Y/Y but dip from March amid tariff and inventory concerns
- US trucking sees record volumes but faces slowdown amid tariff uncertainty and weak demand
- Volvo cuts NA truck market forecast to 275k vehicles from original 300k, plans layoffs amid tariff and trade uncertainties
Datacenter
- AWS delays overseas datacenter leasing deals as cloud providers reassess data center investments amid geopolitical uncertainty
Industrial
- US durable goods orders rise 9.2% Y/Y in March on commercial aircraft demand, but business spending remains cautious amid tariff concerns
IP&E
- Amphenol posts record 1Q25 results with 48% Y/Y sales growth, forecasts strong 2Q25 performance
- Chinese copper smelters hit record output in March, boosted by rising by-product prices
- TE Connectivity beats 1Q25 revenue expectations, guided for strong 2Q25 growth driven by acquisitions and AI business
Semiconductors
- Chinese tech giants stockpiled $12B in Nvidia H20s ahead of US export restrictions says DigiTimes
- Huawei to begin mass shipments of Ascend 910C AI chip, offering domestic alternative to Nvidia following H20 export ban
- Gold price surge leads Taiwan’s IC packaging firms to raise quotes for driver ICs
- Intel forecasts weaker 2Q results, new CEO outlines cost cuts and company overhaul amid US-China trade tensions
- Intel unveils 2nd-gen AI SoC for SDVs at Shanghai Auto Show, boosting AI and graphics performance
- MediaTek debuts Dimensity Auto series with AI-driven smart cockpit and in-vehicle communication platforms
- Samsung reaffirms commitment to 2026 launch for Taylor, Texas semiconductor fab, dismisses 2027 delay rumors
- SK Hynix reports 42% Y/Y revenue growth in 1Q, driven by AI demand and minimal tariff impact
- STMicro forecasts 2Q revenue rise despite potential US tariff impact on global auto production
- STMicro to cut 3k jobs by 2027 amid challenges from outdated fabs and slow shift to advanced nodes
- Taiwan PCB suppliers exceed 1Q25 expectations, but caution ahead of 2H25 amid tariff uncertainty
- Texas Instruments exceeds 1Q25 expectations, but warns of 2H25 risks from tariffs and geopolitical instability
- TSMC unveils A14 chip process and advanced packaging tech to meet next-gen AI demands
Consumer/Other
- China’s rare earth export controls could disrupt automotive production, with critical shortages looming for magnets used in EVs
- China exempts some US imports from 125% tariffs, signaling potential softening in trade tensions
- EU exports to US soar 22.4% Y/Y in February, boosting trade surplus despite tariff concerns
- US and Japan move toward interim trade deal, but key issues like currency policy remain unresolved
- TrendForce notebook market 2025 outlook cut to 1.4% Y/Y growth from 3.6% on challenges tied to US tariff uncertainty and weak demand
- US and China acknowledge unsustainable tariffs, but no plans for unilateral reductions
