Electronics Supply Chain Weekly Digest 6-5-26.
DATAPOINT OF THE WEEK: S&P reported May Eurozone mfg PMI decreased to 51.6 from 52.2 in Apr, remaining in expansion for the fourth consecutive month, but decelerated as new order volume stagnated. Expansion was driven by sustained production growth and supply side factors such as input costs continuing to rise and lead time extensions.
Germany’s May mfg PMI fell to a four month low of 50.1 from 51.4 in Apr as new orders declined M/M for the first time in 2026 with uncertainty and soaring costs tied to the war in the Middle East acting as headwinds to demand. S&P reported US mfg PMI increased to 55.1 in May from 54.5 in Apr, marking the ninth straight month of expansion driven by continued rises in new order growth and output. However, some of the growth appears to be tied to stock rebuilding efforts.
ISM reported US mfg PMI of 54.0, up from 52.7 in Apr. RatingDog China mfg PMI eased to 51.8 in May from 52.2 in Apr as growth in new orders and production slowed from Apr’s pace, which had been the strongest improvement since Dec-20. China’s Government mfg PMI moderated to 50.0, from 50.3 in Apr.
Headlines:
Auto/Transportation
- BYD ends eight-month sales slide on overseas strength but domestic sales continue to decline as Geely, Leapmotor and lower subsidies erode its China business
- GM truck production could be at risk as workers at Dauch, a key supplier for drivelane parts, begin to strike
- Nissan signs non-binding MoU to contract-manufacture Chery vehicles at Sunderland in UK starting in FY27, filling spare capacity at UK’s largest car plant
- Tesla’s China-made EV sales jump 39.4% Y/Y in May as ADAS approval still delayed, according to CPCA
- Tesla announced expansion of unsupervised robotaxi service across Austin Metro
- WeRide and Uber tap Madrid for first European robotaxi rollout, lifting joint deployments to four of 15 planned cities
- Xiaomi EV announced roughly 30K May deliveries as YU7 base trim and GT variant broaden lineup against Tesla Model Y
Datacenter
- Google increases equity raise to $84.75B from $80B to fund AI infrastructure buildout
- SoftBank commits up to $87.4B to build 5GW of AI datacenter capacity in France
- Goldman Sachs projects SpaceX AI revenue to 100x by 2030, while Morgan Stanley expects 2040 total revenue to reach $3.4T, according to the Financial Times and WSJ
Connectivity
- Broadcom maintains 2026 AI chip target above $100B even as 2Q AI sales doubled to $10.8B
- Credo Technology reports FY26 revenue more than tripled to $1.3B on AI interconnect demand, guides FY27 to continued strength
Industrial
- Airbus May deliveries jump to 81 jets as China logjam tied to C919 certification dispute clears, Reuters reported
- Amazon debuts conversational Proteus warehouse robot for 2027 European rollout, anchoring $11.6B fulfillment network buildout
- BYD confirms plans to enter humanoid robot market with open platform and dealer-network distribution
- Honeywell Aerospace targets $6.5B adjusted earnings by 2030 as spinoff frees capital for supply chain and capacity investment
Semiconductors
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- ByteDance taps InnoStar for in-house LPU inference chip, sidestepping HBM as it readies up to $70B AI capex in 2026, according to the The Information
- China’s SiC substrate overcapacity drags six-inch wafer prices to $200-$300, says DigiTimes
- Delta Electronics flags 40% AI power demand unmet as $156B in datacenter projects slipped in 2025
- Lightmatter and Ayar Labs join Nvidia’s NVLink Fusion ecosystem, bringing CPO to semi-custom AI rack-scale infrastructure
- Microsoft unveils AI-designed Majorana 2 quantum chip with lead-based materials, targeting commercially useful systems by 2029
- Nexperia China completes domestic supply chains for MOSFETs and logic ICs, builds out independent operations, EE Times China reported
- Nvidia launches RTX Spark AI PC chip co-developed with MediaTek, with ASUS laptops and compact desktops slated for fall
- Power Integrations debuts 1,700V GaN auxiliary PSU reference designs for Nvidia Kyber 800VDC AI racks
- Samsung Foundry in talks to make 2nm and 4nm autonomous driving SoCs for BYD and other Chinese automakers, per Seoul Economic Daily
- South Korea’s chip exports to China surge 243% Y/Y in May as Huawei-driven AI buildout tightens DRAM supply, according to the South China Morning Post
- TSMC flags AI supply chain bottleneck risk and signals appetite for price hikes as US 2nm localization target slips
- TSMC chair says next-gen CoPoS packaging could scale to large volumes within 2-3 years
- US coalition of automakers and retailers warn US Treasury and Commerce that AI datacenter memory demand is driving consumer price hikes and supply disruption
- Vanguard International Semiconductor guides 2H26 stronger than 1H with fabs fully utilized and supply chains more open to price adjustments
Consumer
- Google enters AI smart glasses market with Samsung-codeveloped Android XR device, projected to lift 2026 category shipments to 17.5M units, according to DigiTimes
