Electronics Supply Chain Weekly Digest 7-2-26.
DATAPOINT OF THE WEEK: S&P reported June Eurozone mfg PMI decreased to 51.4 from 51.6 in May, remaining in expansion for the fifth consecutive month, as new order growth was only marginal and export demand fell for a second month.
Germany’s June mfg PMI rose to 50.3 from 50.1 in May, staying just above expansion as output growth ticked up and new orders returned to growth. S&P reported US mfg PMI decreased to 53.9 in June from 55.1 in May, the eleventh straight month of expansion but a three-month low as output and new order growth moderated, partially supported by pull-in orders ahead of expected price rises.
ISM US mfg PMI came in at 53.3, up from 54.0 in May. RatingDog China mfg PMI eased slightly to 51.7 in June from 51.8 in May, a three-month low but the seventh straight month of expansion and the strongest quarter since 4Q20, as new order and output growth decelerated to three-month lows. China’s Government mfg PMI increased to 50.3, from 50.0 in May.
Headlines:
Auto/Transportation
- BMW completes $1.7B South Carolina, US buildout to localize EV production, with iX5 SUV launching late 2026
- BYD June sales rise 5.5% on export surge as China domestic volumes decline 22% Y/Y
- BYD nears decision on second European plant via brownfield takeover in Spain or France, accelerating push against VW
- GM 2Q US auto sales decline 4.2% Y/Y, cites inflation keeping buyers on the sidelines
- Stellantis extends Fiat 500 Turin stoppage an extra week on engine, bumper, and sensor shortages
- Toyota US 2Q sales rise 1.1% Y/Y on hybrid and affordable model demand
Datacenter
- Meta reportedly plans cloud business to rent out spare AI capacity, positioning it against neocloud suppliers CoreWeave and Nebius, according to Bloomberg
Industrial
- Joby Aviation and Toyota form manufacturing JV to produce S4 air taxi, with Toyota holding 51% stake
- US President Trump permitting delays put $121B of US wind and solar investment at risk, stalling 92GW of clean energy capacity, according to Wood Mackenzie
Semiconductors
- Apple reportedly seeks US clearance to source DRAM from blacklisted Chinese supplier CXMT as AI memory costs squeeze margins, Financial Times reported
- ASE announced hikes on advanced packaging prices by over 20% on CoWoS and FoCoS as AI capacity tightens
- BYD to deploy in-house Xuanji A3 ADAS chip on 2027 Denza model, adding a fourth silicon path alongside Momenta and Huawei
- ByteDance reportedly targets 2H27 mass production of in-house CPU as Intel and AMD hike prices up to 35% Q/Q, as reported by South China Morning Post
- CXMT locks in $2.94B multi-year DRAM supply deal with Tencent, according to Reuters
- Infineon announced the opening of its $5.7B Smart Power Fab in Germany ahead of schedule, targeting AI datacenter and EV power chip demand
- Mature-node foundry pricing set to climb through 2027 as AI capacity reallocation squeezes 8-inch and 12-inch supply, according to TrendForce
- Micron announced GM as long-term memory supply customer, locking in automotive volume
- Trump Administration drafts ban on new foreign inverter models, targeting Chinese suppliers on grid security grounds, according to Reuters
- Vanguard International Semiconductor announced tight 8-inch foundry capacity into 2026 as AI lifts mature-node power IC demand, says SemiMedia
Consumer
- Apple MacBook price hikes to begin in 3Q as AI server demand keeps memory and PMIC costs elevated, saysTrendForce
