Electronics Supply Chain Weekly Digest 8-9-24.
DATAPOINT OF THE WEEK: According to data from the China Passenger Car Association (CPCA), China’s auto retail sales totaled 1.72 million units in July, a 3% decline both month-over-month (M/M) and year-over-year (Y/Y).
NEV sales totaled 878,000 units, reflecting a 3% increase M/M and a 37% increase Y/Y, indicating continued strength in EV sales. BEV sales declined by 2% M/M but increased by 14% Y/Y, accelerating from the 10% growth seen in June. PHEV sales remained strong, growing 80% Y/Y. The numbers suggest that NEV penetration reached 51% in July, marking the first time it has surpassed 50%.
The CPCA added that China’s exports were flat M/M and Y/Y in July for the second consecutive month. The CPCA noted that the economic landscape in July faced rising external uncertainties and relatively weak internal demand, with consumer expectations remaining low. However, the Chinese government’s trade-in policies promoting vehicle scrappage and renewal showed effectiveness, with various regional policies introduced to stimulate demand. As a result, NEV sales exceeded the forecasts of passenger car manufacturers.
According to another Chinese auto association, CAAM, passenger car production declined by 7% M/M and 4% Y/Y in July to 2.03 million units, while commercial vehicle production declined to a four-month low of 268,000 units, reflecting a 22% M/M and 10.5% Y/Y decline. This signals a weakening trend relative to the recent stability in Y/Y output.
Headlines:
Auto
- China’s Dongfeng in pole position to build an auto plant in Italy
- German automaker mood darkens on slowing EV shift, China slump
- Germany new auto sales worsen in July with BEV sales tumbling 37% Y/Y
- China EV battery prices fall slightly in Jul as material costs continue to decline, says TrendForce
- Continental cuts its outlook on weaker Europe, China demand; promises better profits on cost cutting measures
- Toyota cuts 2024 global vehicle output forecast by 5%
- US expected to propose barring Chinese software in autonomous vehicles
- GM says it is committed to China operations despite challenges
- China takes Europe’s EV tariffs to WTO as trade tensions rise
- Tesla July shipments from its China factory showed improvement Y/Y for the first time this year
Industrial
- German factory orders rise first time this year on cars, metals
Datacenter
- Britain cancels $1.7 billion of computing projects in setback for global AI ambitions
- HPE’s $14 Billion Juniper Deal Wins UK Antitrust Approval
Semiconductors
- EU should limit curbs on outbound investment, semiconductor group says
- Chinese firms stockpile high-end Samsung chips as they await new US curbs, says Reuters
- SK Hynix secures $450M in US CHIPS Act funding for HBM packaging plant in Indiana
- Microchip launches PCIe Gen 5 SSD controller
- Infineon reports weaker results on Auto weakness; announces 1400 job cuts
- Infineon opens SiC power semiconductor fab in Malaysia
- Infineon completes sale of back end manufacturing sites to ASE
- Nvidia upcoming AI chips Blackwell to be delayed by at least a quarter according to several news reports
- Global semi sales increased 18.3% Y/Y and 6.5% Q/Q in 2Q says SIA
- Samsung’s 8-layer HBM3E chips clear Nvidia’s tests for use, says Reuters
- TSMC to raise quotes for 5nm, 3nm process manufacturing in 2025
- GlobalFoundries forecast 3Q profit below expectations on weaker 2H demand recovery
- GlobalWafers cuts 2024 revenue outlook for a second time
- Vishay results miss expectations on slowing Auto demand; company cuts CY24 Capex outlook, pushing out the buildout of its MOSFET fab in Germany
- SMIC guided to mid teens growth in 3Q revenue, signaling a recovery in China demand
- SMIC accelerates capacity buildout plans on government push for more local supply
- TSMC July revenue surges 24% M/M and 45% Y/Y
Other
- Maersk sees growth slowing in 2H, after Red Sea crisis boost
- HPQ considering moving more than 50% of PC production out of China
- Plexus breaks ground on sixth manufacturing facility in Malaysia
- Lukewardm end demand driving only modest 3Q/2H increase in PC production forecasts says DigiTimes