Electronics Supply Chain Weekly Digest 8-2-24.
DATAPOINT OF THE WEEK: ISM reported July mfg PMI declined M/M to 46.8 from 48.5 in June reflecting a deteriorating pace of new orders, output, and employment.
US mfg PMI from S&P showed a similar trend with a July reading of 49.6 dropping into contraction territory for the first time in 7 months. S&P reported Eurozone mfg PMI remained unchanged M/M in July at 45.8 reflecting steeper reduction in new orders, continued contraction in out, and accelerated decline in employment.
In China, the government’s official mfg PMI eased to 49.4 in July vs 49.5 in June reflecting falling new orders and pricing pressure. Consistent with that private Caixin mfg PMI declined to 49.8 from 51.8 in June similarly highlighting falling new orders combined with a drop in output.
Headlines:
Auto
- Audi will drop four-ring logo on new China EVs due to “brands image consideration”
- China woes hit BMW as profit margin falls
- BorgWarner cuts its CY24 revenue outlook on lower BEV demand and Auto production cuts
- BYD July sales mixed with strength in PHEV but moderation in BEV units
- Cummins raises its full-year outlook on stronger demand for Industrial applications and Mining
- China enhances consumer incentives to scrap older vehicles, boost sales of electrified models
- Daimler Truck cuts its full year outlook on weak Europe and Asia demand; slashes employee hours as 1H orders sink 10%
- Chinese brands seize record 11% BEV share in Europe
- Magna lowers 2026 outlook on EV uncertainty, contract assembly woes
- Mercedes Q2 earnings fell 19% on weak EV demand, China slump; profit outlook cut
- Stellantis offering new round of voluntary buyouts to US salaried workers
- Volkswagen doubles down on cost cuts to try to revive margins
- New Auto sales in the US expected to rebound M/M in July according to Cox Automotive
Datacenter
- EU approves Hewlett Packard Enterprise’s $14B Juniper deal
Semiconductors
- AMD post better results on PC, datacenter upside; raises forecast for AI chips
- Applied Materials denied US Chips grant for $4 billion Silicon Valley project
- US to award Amkor up to $400 million for chip packaging plant
- Intel to cut 15% jobs, suspend dividend in turnaround push as cost rise amid weaker demand
- Mobileye slashes annual forecasts for a second time this year citing sluggish end-demand and OEM production cuts
- STMicro cuts full-year outlook for second time
- Microchip guides 3Q sales down Q/Q on prolonged inventory correction and continued weakness in Auto and Industrial
- New US rule on foreign chip equipment exports to China to exempt some allies
- Lam Research forecasts quarterly revenue above estimates fueled by AI boom
- SK Hynix announces new $6.8B fab plan
- Qualcomm forecasts upbeat revenue on high end chips for Android phones
- Global silicon wafer shipments up 7.1% in Q2
Other
- Amazon post weaker retail results, highlights consumer cautious
- Apple pins hopes on AI for iPhone upgrades as China sales falter
- Apple’s AI features rollout will miss upcoming iPhone software overhaul, says Bloomberg
- Shipments of foreign phones in China rise slower 10.9% in June, data shows
- PC replacement demand is unlikely until 2025, says Realtek
