Electronics Supply Chain Weekly Digest 5-17-24.
DATAPOINT OF THE WEEK: Auto inventory at U.S. dealer lots increased 3% M/M in April to 2.84 million units, according to Cox Automotive data.
The current level of inventory is 49% higher compared to the 1.9 million units of inventory a year ago, but still 20% below the average of 3.5 million units pre-COVID.
Considering current sales trends, days of inventory increased by 2 days M/M to 76. Such a level of days’ supply is considered normal, though supply by brands continues to vary widely. Toyota, Lexus, and Honda days of supply remained the lowest in the U.S. market at less than 46 days, while 15 brands had more than 100 days of supply, with Stellantis brands collectively having days of supply at twice the industry average.
Headlines:
Auto
- China asks carmakers to use up to 25% local chips by 2025
- Ford to build 300,000 cars a year at Spanish plant
- Ford cuts battery orders as EV losses top $100,000 per car
- Ford asks suppliers to cut costs in push to turn EV business profitable
- Germany new car sales trend improves in April; xEV sales turn positive Y/Y for first time since Aug-23
- Honda moves to cut China workforce with voluntary layoffs
- Honda and IBM to co-develop auto chips
- Workers in Mercedes plant in Alabama are voting this week on UAW representation
- Mercedes halts development of MB.EA large EV platform
- US suggests possibility of penalties if production of Chinese electric vehicles moves to Mexico
- Xiaomi delivers its 10k SU7 EV 43 days after initial delivery
- EV adoption study suggests consideration will surge in second half of decade
- Tesla planning data center in China to power AI/Self Driving ambitions
- VW walks back EV-or-Bust strategy as sales slow
- VW and Renault end talks to develop affordable EV
- After three months of declines, new-vehicle prices reversed course in April, says Cox
- Toyota repeatedly halted Mexico plant after suppliers hit by worker shortage
Industrials
- Deere cuts 2024 profit forecast as sliding farm income stifles demand
- US manufacturing output unexpectedly falls in April
Datacenter
- Google unveiled its sixed gen TPU for AI applications
- Cisco sees line of sight for inventory digestion ending by the summer; guides revenue better than expected
Semiconductors
- Arm plans to launch AI chips in 2025
- Applied Material revenue results and outlook beat expectations; more than 40% of sales now from China
- Intel nears $11 billion deal with Apollo for Ireland factory
- Samsung and SK Hynix abandon DDR3 production to focus on unrelenting demand for HBM3
- Biden’s new China tariff wall faces leakage via Mexico, Vietnam
Other
- Biden increases tariffs on $18 billion in Chinese imports
