Electronics Supply Chain Weekly Digest 5-24-24.
DATAPOINT OF THE WEEK: S&P reported Eurozone May mfg flash PMI of 48.9 vs 45.4 in April, reflecting a near stabilization with a marginal decline in new orders and output.
May flash PMI also improved in Germany to 45.4 from 42.5 in April with business expectations for activity in the year ahead also improving considerably.
In the US, S&P reported May flash mfg PMI expanded to 50.9 from 50.0 signaling a renewed expansion in activity driven by an increase in output, partially offset by a marginal decline in orders. In Japan flash mfg PMI edged higher to 50.5 in May from 49.6 in April, signaling a return to expansion after several months of contraction.
New auto sales in Europe picked up pace increasing 12% Y/Y in April, the strongest pace since Oct-23 led by +20% increases in Spain and Germany. BEV sales increased 14% Y/Y to 144K in April, though the level was the 3rd lowest in the past 11 months. BEV penetration dipped M/M to 13.4% and it was largely in line with last year’s 13.1%. PHEV and HEV sales increased 5.9% and 29% respectively. ICE sales grew 4% and penetration increased 2 points M/M to 49%, representing the 3rd highest in the last 6 months.
Headlines:
Auto
- China should hike tariffs on large cars to 25%, says government-affiliated research body
- China auto retail sales showed improving trend in the first half of May
- Slowing EV uptake may delay Panasonic’s EV battery expansion, CEO says
- Li Auto 1Q sales disappoint amid tepid demand for electric cars
- Lucid to trim US workforce by 6% amid softening EV demand
- Nissan pauses plans for some EV cars in US
- Mercedes workers in Alabama vote against joining UAW
- Stellantis CEO Carlos Tavares calls Chinese EV tariffs a trap; warns of significant consequences for hobs and production
- Volkswagen delays ID.7 EV launch in US, Canada
- VW and Renault pull plug on EV SUV
- Xiaomi ups EV goal to 120,000 as Q1 tops forecasts
- Tesla slashes Model Y production by 20% in 2Q in China; eliminates goal of delivering 20M vehicles by 2030
- European automakers need time and lower costs, not tariffs, to fend off China competition says VW
- Americans keep vehicles for record 12.6 years on average despite easing supplies, S&P says
- US auto sales to improve modestly in May as higher inventory and incentives drive demand
IP&E
- Amphenol announced closing of Carlisle’s Interconnect acquisition; announces 2:1 stocks split
- TE considering selling its Medical business for $2B
Industrial
- US manufacturers forecast lower growth in 2024 compared to expectations back in December says ISM
Datacenter
- Google invests 1 billion euros in Finnish data centre to drive AI growth
Semiconductors
- ADI sees improving orders trends; guides above expectations following quarters of under-shipping demand
- European Commission official sees $100 bln in private chip investment by 2030
- US tariff barriers boosts Utilisation rates at Taiwanese foundries
- Infineon announces power supply units to support AI energy demands
- Nvidia again beats market expectations and reports record results
- Nvidia cuts AI GPU prices in China in Huawei chip fight
- Toshiba completes new 12-inch power semiconductor factory, increasing MOSFET and IGBT production capacity by 2.5 times
- Micron hit with $445 million US verdict in Netlist patent trial
- South Korea unveils $19 billion package for chip industry
- US plans $75 million grant to Absolics for advanced chip packaging
- Samsung ousts top Semiconductor executive due to AI missteps
Other
- Apple slashes iPhone prices in China amid fierce Huawei competition
- Microsoft releases PCs designed for AI
- Dell introduces comprehensive portfolio of Copilot+ AI PCs
- Sudden container crunch sends ocean freight rates soaring, setting off global trade alarm bells