Electronics Supply Chain Weekly Digest 1-10-25.
DATAPOINT OF THE WEEK: S&P reported Eurozone mfg activity deteriorated slightly in Dec with PMI of 45.1 vs 45.2 in Nov reflecting an accelerating decline in new orders and output and sharp reductions in purchasing activity.
For the US S&P also reported a downtick in mfg activity in Dec with PMI of 49.4 vs 49.7 in Nov owing to a sharper reduction in new orders and faster decline in production and purchasing activity, partially offset by a modest increase in employment and still constructive outlook for 2025.
In contrast, ISM reported Dec mfg PMI upticked to 49.3 from 48.4 in Nov with new orders noted in expansion territory for the second consecutive month and output returning to growth for the first time in six months.
In China, private Caixin PMI reading showed activity expanded in December, albeit at a slower pace with PMI of 50.5 vs 51.5 in November as new order growth slowed on softening export demand, partially offset by a third monthly increase in purchasing activity with anecdotal evidence of intentional build-up of safety stock amid increase geopolitical uncertainty.
Headlines:
Auto/Transportation
- Aurora, Continental and Nvidia announce autonomous truck partnership
- US to finalize Chinese vehicle crackdown rules next week, Raimondo says
- China Auto to enter consolidation phase in 2025 warns Xpeng CEO
- China’s EV exports seen stalling in 2025 with EV exports projected flat
- China Auto retail sales hit record in Dec with ICE growth outpacing NEV M/M
- China auto market sees 227 models with price cuts in 2024 vs 148 in 2023
- China renews car trade-in subsidies
- Chinese automakers set ambitious targets amid EV subsidy extension; targets well ahead of China Auto Association forecast of 2% growth in passenger cars and 20% growth in NEVs
- Deere boosts bet on autonomous tractors with new machines
- EU automakers to pool CO2 emissions with Tesla, Polestar to meet EU 2025 rules
- China’s Geely targets rapid growth with over 5 million units of annual sales by 2027
- Global EV sales are projected to jump 30% in 2025 according to S&P
- Hyundai Motor Group to invest record $16.7 billion in South Korea this year
- Lucid beats estimates for EV deliveries as price cuts, cheaper financing spur demand
- Mercedes to revise profit outlook downwards in sluggish car market, source says
- EV maker Rivian beats expectations for deliveries as supply snag eases
- Tesla sells record 82,927 cars in China in Dec, exports 10,839 from Shanghai plant
- Trump’s tariff threat spurs auto suppliers to rethink production plans in Mexico
- US SAAR forecasted to grow 2% to 16.3M driven by improving availability says Cox
- Volvo CEO says plan for Mexico truck factory on track
- Volkswagen brand deliveries fall 1.4% in 2024
Industrial
- China flexes lithium dominance with plans for tech-export curbs
- German industrial orders, retail sales drop in November
- Tesla supplier Panasonic Energy says cutting China supply for US business a ‘No.1 objective’
- Weak demand for aircraft weighs down US factory orders in November
Semiconductors
- China’s export ban has pushed antimony prices to new highs
- TSMC’s Kumamoto plant faces utilization ramp-up challenges amid automotive sector slowdown
- “China-for-China” gaining momentum according to TrendForce
- Foxconn beats estimates with record fourth-quarter revenue on AI demand
- Global semiconductor sales set monthly record in November, growing 20% Y/Y driven by Nvidia and AI
- Honda and Renesas sign agreement to develop high-performance SoC for SDVs
- SEMI says 18 new semiconductor fabs to start construction in 2025
- NXP to acquire TTTech Auto for $625M in cash
- Honeywell, NXP expand partnership to develop aviation technology
- Nvidia Cosmos – an AI platform to change the future of robots and cars
- Nvidia CEO says company has plans for desktop chip designed with MediaTek
- Renesas to cut less than 5% of global workforce amid soft demand
- Samsung’s preliminary Q4 profit falls far short of estimates as chip issues drag
- TSMC’s fourth-quarter revenue handily beats market forecast on AI demand
- Fire breaks out at PCB firm Zhen Ding’s northern Taiwan plant, supply impact appears contained
Consumer/Other
- Apple’s China troubles mount as foreign phone sales sink for 4th month
- China expands consumer trade-in program to revive consumer spending
- India reportedly to announce $3 billion incentive scheme to boost electronics manufacturing, benefitting Apple
- US adds Tencent, CATL to list of Chinese firms allegedly aiding Beijing’s military
