Electronics Supply Chain Weekly Digest 7-18-25.
DATAPOINT OF THE WEEK: This week’s tariff updates include President Trump confirming new 25% tariffs on Japanese and South Korean imports starting August 1, while the US nears a trade deal with India, currently facing a 26% tariff.
Talks are also underway with dozens of smaller countries, which will be notified of new uniform tariffs above 10%, alongside a recently announced deal with Indonesia.
Japan’s failure to reach a trade agreement by the July 9 deadline now exposes its exports, especially automobiles, to the full 25% tariff, contributing to an 11.4% Y/Y drop in June exports to the US. Meanwhile, Trump is pushing for a minimum 15–20% tariff in any deal with the EU, rejecting the bloc’s offer to reduce car tariffs and maintaining a 25% duty on autos, with reciprocal tariffs above 10% also under consideration.
Additionally, the US will impose a 50% tariff on imported copper starting August 1, raising costs for semiconductors and connectors that depend heavily on copper components. The SIA has warned this could undermine US chip competitiveness globally, especially given longer-term risks of copper supply disruptions and no viable substitutes in chip manufacturing.
Headlines:
Auto/Transportation
- China’s cabinet pledges to end EV price war and boost domestic consumption through policy reforms
- GM redirects Cadillac Escalade production to Michigan, boosts gas truck capacity with $4B US investment amid slowing EV demand
- GM pauses Silverado and Sierra production at Mexico plant for several weeks to optimize operations amid unusual extended downtime
- JLR delays Range Rover and Jaguar EV launches to 2026 amid extended testing and slower demand, says The Guardian
- Japanese automakers delay US EV production amid weak demand and fading federal tax incentives, shifting focus to hybrids and ICE models
- Nissan to halt Oppama plant production by 2028, consolidate factories amid global restructuring; explores EV conversion with Foxconn
- Renault issues profit warning after weak June sales, lowers full-year margin target amid cash flow pressures and CEO departure
- China’s robotaxi market set to explode to $44.5B by 2035 with 96% CAGR, outpacing US growth, according to TrendFroce
- Tesla plans new six-seater Model Y L with extended wheelbase for China launch this fall
- Tesla launches Model Y in India at $70k amid steep import tariffs, targeting luxury EV market with deliveries expected in 3Q
- Uber to invest $300M in Lucid, launching 20k autonomous Lucid Gravity SUVs with Nuro tech in US city by late 2025
- UK Labour government to unveil £700M incentives and invest £2.5B in EV transition amid challenges hitting automakers’ sales targets
- US new EV sales hit 311k in 2Q, down 6.3% Y/Y; 2025 forecast EV share forecasts lowered to 8.5%, says Cox
- US new-vehicle affordability improves slightly in June as incomes and incentives rise, higher interest rates and tariffs adding $5.7k per imported car, says to Cox
- Trump signs law wiping out fuel economy penalties since 2022, easing rules for gas vehicle makers and blocking California’s 2035 gas car ban
- Trump’s NHTSA nominee Jonathan Morrison signals tougher oversight on self-driving tech amid probes into Tesla, Waymo, and Cruise safety incidents
- Volvo’s 2Q revenue falls 7.9% to $8.7B amid soft demand and US tariffs; plans US XC60 hybrid production by late 2026, urges EU to cut auto tariffs
Datacenter
- Amazon cuts hundreds of AWS jobs amid AI-driven cost cuts, aiming to optimize resources while maintaining innovation
- CoreWeave and Blackstone announce separate plans to invest combined $31B in Pennsylvania AI datacenters
- Meta to invest hundreds of billions in massive AI data centers, raising 2025 capex forecast to $64–72B in AGI push
- OpenAI expands cloud partnerships, adding Google
- Oracle to invest $3B over five years in AI and cloud infrastructure across Germany and the Netherlands
Semiconductors
- ASML warns 2026 revenue growth at risk from US tariffs despite strong 2Q EUV sales; tariff threats disrupt supply chains amid chipmaker challenges
- Broadcom cancels $1B semiconductor plant in Spain, dealing blow to country’s ambitions as a major European chip hub, according to Europa Press
- Chinese hackers intensify cyberattacks on Taiwan’s semiconductor industry and analysts with phishing campaigns in early 2025, says Proopoint
- China launches Institute to boost RISC-V AI and software development, advancing chip self-sufficiency efforts, says DigiTimes
- Memory suppliers extend DDR4 EOL to late 2026 amid soaring prices and tight supply, according to DigiTimes
- Nvidia to resume China sales of H20 AI chips after US export easing, launches RTX Pro GPU for smart factories
- Sony cuts over 100 semiconductor R&D jobs in Israel, scaling back IoT chip efforts amid global restructuring
- TSMC posts record $13.5B 2Q profit, raises 2025 revenue outlook to ~30% growth despite tariff and currency headwinds
- Wistron invests $45M to expand AI server R&D in California, plans Texas manufacturing site to meet growing demand and boost Nvidia partnership
Consumer/Other
- Global smartphone market slips 1% Y/Y in 2Q25 as replacement demand fades, according to Canalys
- US Commerce Department imposes 160% anti-dumping duties on Chinese graphite imports, raising EV battery costs
- US Defense Dept invests $540M to secure rare earths supply, backing MP Materials with guaranteed pricing to challenge China’s dominance