Electronics Supply Chain Weekly Digest 1-9-26.
DATAPOINT OF THE WEEK: S&P reported that the December Eurozone mfg PMI decrease to 48.8 from 49.6 in November, reaching a nine month low driven by production levels declining for the first time since Feb-25 and new order fell at quickest pace in almost a year.
Germany’s mfg PMI declined sharply for the second consecutive month in December to 47.0, down from 48.2 in November as production declined after 9 months of growth. Furthermore, December marked the third month in the last four to record a drop in new orders as export sales declined for the fifth consecutive month and at its fastest rate since Dec-24.
RatingDog China mfg PMI rose to 50.1 in December, up from 49.9 in November as manufacturing production returned to growth and new orders expanded for the seventh consecutive month, though the improvement in demand was largely limited to the domestic market, however, as new export orders fell for the second time in three months. China’s National Bureau of Statistics (NBS) mfg PMI was consistent with the RatingDog PMI, rising to 50.1 in December, up from 49.2 in November.
US mfg PMI declined to 51.8 in December, down from 52.2 in November, though it marks the fifth straight month of the PMI being in expansion. Despite this, indicators show cause for concern as new order growth declined, and exports declined for the seventh straight month. Contrastingly, ISM reported December US mfg PMI of 47.9, a decline from 48.2 in November as ISM reported that new orders declined for the fourth straight month.
Headlines:
Auto/Transportation
- AWS partners with Aumovio to accelerate commercial rollout of autonomous vehicles, according to Reuters
- China battery demand to drop sharply in early 2026 as NEV sales slow post-subsidy pull-forward, says the CPCA
- China to extend vehicle trade-in subsidies in 2026 but cut benefits for lower-priced cars, according to CNEV Post
- Car affordability pressures to weigh on US auto sales in 2026 despite strong 2025, according to Cox
- Ford targets first Level 3 driver-assistance system launch in 2028 on new EV platform, says Reuters
- Foxconn’s EV JV with Yulon motor finalizes acquisition of Yulon’s Luxgen brand to enter autonomous driving market
- Geely weighs US market entry in next 2–3 years with Zeekr and Lynk & Co., according to the WSJ
- GM announces plan to take $6B charge to scale back EV investments amid weaker demand
- Mercedes launches MB.DRIVE ASSIST PRO for US city driving, competing with Tesla FSD
- VW taps Qualcomm as primary infotainment SOC supplier for next-gen software platform, targeting 2027 launch according to Reuters
Datacenter
- Chinese Lithium batteries spark global AI datacenter competition amid rising US tariffs, says DigiTimes
- Crusoe and Tallgrass greenlight 1.8GW gas-powered datacenter campus in Wyoming, potential to scale to 10GW, according to Data Center Dynamics
- Lenovo partners with Nvidia to build AI cloud gigafactories, cutting deployment timelines from months to weeks
- Microsoft plans new datacenter campuses in Michigan totaling 360+ acres, with community engagement underway, says Data Centers Dynamics
- xAI raises $20B at $230B valuation to fund Memphis datacenter expansion and Colossus supercomputer
IP&E
- BizLink acquires XFS Communications to expand high-speed optical interconnect offerings for AI and datacenters
- Global copper demand set to rise to 42M tons by 2040, with supply shortfall looming, says S&P Global
- Ethernet Alliance and UEC push 400G+ speeds and AI-optimized networking for 2026
Semiconductors
- Baidu’s AI chip unit Kunlunxin hires banks for Hong Kong IPO, targeting ~$2B raise, according to Bloomberg
- Black Sesame secures US approval for Huashan A2000 SoC, paving way for global autonomous driving sales, says DigiTimes
- Hua Hong and SMIC acquire key semiconductor assets to boost China’s chip self-sufficiency
- Intel unveils Panther Lake Core Ultra 3, its first 18A mobile processor, boosting performance and graphics at CES 2026
- Microchip raises 3Q sales forecast to $1.19B on strong bookings and improving backlog
- Marvell to acquire XConn Technologies for $540M to expand PCIe and CXL switching portfolio
- Mobileye to acquire Mentee Robotics for $900M, entering humanoid AI market
- Nvidia unveils Vera Rubin platform at CES 2026, cutting inference costs 10x and boosting AI compute
- China pauses some Nvidia H200 orders as government weighs controlled commercial access amid US-China chip tensions, according to Reuters and Bloomberg
- Qualcomm in talks with Samsung to produce next-gen 2nm chips, potentially returning from TSMC, says DigiTimes
- Qualcomm, Google, and others back RISC-V as flexible, cost-effective alternative for AI and data center workloads
- Samsung to restart Pyeongtaek P5 semiconductor plant construction in February, targeting 2028 operations, according to DigiTmes
- TSMC plans up to 12 Arizona fabs, expanding US footprint with 2nm and advanced packaging facilities, according to DigiTimes
- TSMC upgrades 8-inch and 12-inch fabs for advanced packaging, shifts mature node production to partners
- US plans new tariffs on Chinese semiconductors from 2H27 amid Section 301 investigation, according to Supply Chain Dive
Consumer/Other
- Apple secures NAND supply through 1Q26 but faces rising DRAM and A20 chip costs from AI-driven demand, according to Morgan Stanley