Electronics Supply Chain Weekly Digest 6-20-25.
DATAPOINT OF THE WEEK: China’s Ministry of Industry and Information Technology (MIIT) is pushing domestic automakers to achieve 100% locally designed and manufactured chip content in vehicles as early as 2026, according to Nikkei.
Nikkei also noted that two major Chinese brands are making headway on reaching this milestone, with the first qualifying models expected to enter mass production in 2026. This marks a sharp acceleration from the previous 2024 target of 25% local chip content.
While most standard automotive chips can be replaced with Chinese alternatives, high-end components, such as Nvidia and Qualcomm SoCs used in ADAS and cockpit systems, remain difficult to substitute, posing a key challenge.
Headlines:
Auto/Transportation
- BMW battery supplier AESC halts South Carolina expansion amid US-China tensions, says DigiTimes
- Audi weighs $4.6B US plant to ease tariff tensions and expand local presence
- BYD floods Brazil with EVs as tariff hike debate intensifies amid factory delays
- China halts EV trade-in subsidies amid fraud concerns and funding shortfall, according to Bloomberg
- Stellantis and Renault push EU for lighter rules on small cars to counter Chinese EVs
- EV interest declines in West despite high satisfaction among current owners, Shell study finds
- Foreign carmakers risk further decline in China as local EV brands expand and innovate
- JLR cuts 2026 margin forecast as US tariffs hit non-local automakers
- Mitsubishi to raise US prices 2.1% amid tariff pressure, eyes EVs and Nissan partnership
- German automakers hit with €500M in costs from tariffs in April, VDA says
- US BEV demand dips for first time in 14 months amid infrastructure and subsidy concerns, according to S&P Global Mobility
- US new-vehicle affordability stays at worst level of year in May amid high rates, according to Cox Automotive
- Volvo and Daimler trucks boost inventories, diversify supply amid China rare earth export rules
- Waymo to restart autonomous vehicle testing in NYC, aiming for first robotaxi deployment
- Amazon’s Zoox opens robotaxi factory in California, targets Las Vegas launch this year
Datacenter
- Amazon CEO says generative AI rollout will reduce corporate workforce by automating routine tasks
- Jabil raises 2025 outlook on strong AI data center demand, plans $500M US investment
- Microsoft to cut thousands of sales jobs amid AI-focused workforce restructuring, says Bloomberg
- Microsoft may exit OpenAI talks over equity disputes but plans to keep tech access through 2030, according to the FT
- SK Group and AWS to invest $5.1B in South Korea’s largest AI data center in Ulsan
Industrial
- Tesla to build first China megapack battery storage station in Shanghai with $557M deal
Semiconductors
- CHIPS Act reshoring hits delays and pushback, risking $5M daily losses at Amkor, Micron, and SK fabs, says DigiTimes
- CXMT aims for HBM3E mass production by 2027, according to DigiTimes
- Intel hires three chip veterans amid CEO Tan’s management overhaul and refocus
- NIO launches Anhui Shenji chip design subsidiary to expand smart driving tech and external sales
- Sony semiconductor unit forecasts record 2025 profit, targets automotive sensor growth
- Texas Instruments announces plans to invest $60B in US chip manufacturing expansion, creating 60k jobs
- Wolfspeed plans prepackaged bankruptcy to reduce debt amid production and refinancing struggles
Consumer/Other
- China’s rare earth magnet exports to US plunge 53% in May amid export restrictions, according to customs data
- China plans $19B in subsidies for “old-for-new” trade-in program to boost retail and industrial
- G7 formulating strategic plan to secure critical minerals for supply chains amid China export disruptions, according to Reuters
- Global cellular IoT shipments rise 16% Y/Y in 1Q25, led by India and China smart metering demand, according to Counterpoint Research
- India orders halt to rare earth exports to Japan to secure domestic EV motor supply, says Reuters
- US-China trade talks stall over military rare earth export restrictions, complicating broader deal
- EU braces for 10% reciprocal tariff baseline in US trade deal with rising pressure from upcoming July deadline
Source:
Edgewater Research
