Electronics Supply Chain Weekly Digest 8-23-24.
DATAPOINT OF THE WEEK: S&P reported Eurozone Aug flash PMI of 45.6 vs 45.8 in July, with the rate of contraction in output remaining consistent M/M but a faster decline in new orders and negative change in employment.
Future outlook sentiment also dropped in Europe to the lowest in 2024. Germany’s manufacturing activity continues to be a drag for Europe with Aug flash PMI of 42.1 vs 43.2 in July reflecting quickening pace of decline in output, orders, employment, and future outlook sentiment.
US manufacturing activity also showed signs of incremental softening with Aug flash PMI of 48 vs 49.6 in July. Output in the US fell sharply to a 14-month low reading of 47.8 vs 50.5 last month; new orders declined for the second month in a row. Forward optimism in the US also waned.
Headlines:
Auto
- China Auto retail sales expected to strengthen according to estimates from China Passenger Car Association (CPCA)
- Chinese EV maker BYD eyes state incentives for Mexico plant
- China to discuss import tariffs on large cars ahead of EU tariff vote; Germany most at risk
- European Union slashes planned tariffs on China-made Tesla EVs, other Chinese firms
- Fear over battery fires has slumped South Korea’s EV market
- Uber to bring GM’s Cruise autonomous vehicles to its platform
- China’s SAIC vows to take further measures after EU draft findings on subsidies
- Xiaomi Q2 revenue beats estimate, reveals 27K EVs sold in 2Q; targets 120K EVs in CY24
- Xiaomi, eyeing Europe, will swallow EV losses to join Tesla in the big leagues
- Ford delays new EV plant, cancels electric three-row SUV as it shifts strategy
- VW scales back plans for battery cell plants in Europe, North America
Semiconductors
- ADI beat and guided above but noted order trend remain mixed
- AMD to buy ZT Systems for $4.9B
- Renesas says no effect on Ibaraki fab from earthquake on Aug 19
- Microchip Technology hit by cyberattack, slowing operations
- Infineon to pay $837 million to settle long-pending Qimonda dispute
- TSMC and ESMC wafer fab in Europe to break ground on Aug 20
- TSMC acquires Innolux’s panel fab, to use it to expand CoWaS capacity
- Qualcomm expands its industrial IoT portfolio with the purchase of Sequans’s 4G IoT portfolio
- Wolfspeed forecasts weak first-quarter revenue; shift to 200mm SiC production tracking ahead of plan
Other
- Apple’s first India-made iPhone Pro models coming this year
- Canada rail strike locks out 9,000 workers after labor talks failed; government intervenes sending them to arbitration
- Global PC shipments expected to grow by 3.7% in 2024 says TrendForce