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    source: Samtec

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    source: Samtec

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Wk 3 Electronics Supply Chain Digest

20.1.2025
Reading Time: 3 mins read
A A

Electronics Supply Chain Weekly Digest 1-17-25.

DATAPOINT OF THE WEEK: China has launched an investigation into US subsidies, claiming they give companies like Texas Instruments and Analog Devices an unfair advantage in the mature node chip market, harming Chinese chipmakers.

RelatedPosts

July 2025 Interconnect, Passives and Electromechanical Components Market Insights

Wk 29 Electronics Supply Chain Digest

June 2025 ECST Components Survey Delivers Stunning Results

The probe targets the CHIPS Act, alleging that US firms are exporting low-priced chips to China, undermining the local market. The investigation follows complaints from Chinese industry players, who argue that the $39B in funding under the CHIPS Act violates market principles and disrupts global supply chains.

Beijing’s move mirrors concerns raised by the US and EU about state subsidies and the potential for market flooding with low-cost chips.

Headlines:

Auto/Transportation

  • Slight increase in material costs expected to stabilize BEV cell prices in 1Q25, says TrendForce
  • Chinese buyers interested in unwanted German Volkswagen factories
  • Car plants in Europe, North America face closures in 2025, Gartner says 
  • Global sales of EVs and PHEVs rose 25.6% Y/Y in Dec, reaching 1.9M units
  • German premium carmakers’ sales battered in China and Germany amid slowdown
  • US new vehicle sales surged in Dec, with a 6.5% increase M/M, Cox Automotive
  • Mercedes-Benz and Google partner on AI-powered conversational search within navigation systems
  • Stellantis projects 9% shipment decline for Q4 amid US inventory cuts
  • US EV sales set a record in 4Q24, rising 15.2% Y/Y, Cox Automotive
  • Volkswagen deliveries drop in tough year at home and in China

Datacenter

  • HPE secures $1B AI server deal with Elon Musk’s X social network
  • Inventec eyes Texas for US server factory, awaits clarity on tariff policy
  • Nvidia’s biggest customers delaying orders of latest AI racks, The Information reports

Semiconductors

  • Analog Devices receives $105M CHIPS Act award
  • Qualcomm and NXP drive AI integration in consumer and automotive electronics at CES 2025
  • Infineon breaks ground on power module assembly plant in Thailand
  • NXP gets €1B loan from EIB for European projects
  • NXP could make up to 10% of revenue from India by 2030
  • Global chipmakers reduce investments for 2nd year in a row as EV and smartphone demand stalls
  • STMicroelectronics and GlobalFoundries reportedly halt French wafer plant plans, shift focus to Chinese market
  • TSMC begins 4nm chip production in Arizona, a first for the US
  • US Department of Commerce announces $1.4B to support semiconductor advanced packaging
  • US introduces tiered AI chip export rules, restricting China and prioritizing allies

Consumer/Other

  • China’s dual-use export controls disrupt supply chain relocation, affecting Apple and ODMs
  • Tech giants Meta, Microsoft, and Amazon plan job cuts in early 2025
  • US importers rush in goods from China as Trump tariff threat looms

Related

Source: Edgewater Research

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