Electronics Supply Chain Weekly Digest 9-20-24.
DATAPOINT OF THE WEEK: New car sales in Europe plummeted in August to the lowest level since Aug-22, according to data from the European Auto Manufacturers’ Association.
New registrations declined 16.5% Y/Y with registrations in France and Germany declining 24% and 27% respectively, Italy declining 13%, while Spain and UK sales were down 6.5% and 1.3% respectively.
Sales of BEV declined 36% Y/Y to the lowest level since Feb-23 indicating a worsening in EV demand following the single digit Y/Y decline in sales YTD. PHEV also appears to have worsened declining 22% to the lowest level since ACEA started breaking out the sales in 2022. HEV sales were more stable, increasing 8.6% Y/Y, while ICE sales declined 19% Y/Y.
Headlines:
Auto
- BYD takes full control of Mercedes-Benz venture in China
- Bosch chief sees stagnating growth in car markets worldwide
- China urges chip localization in Auto targeting full localization by 2027; touting reduction in government incentives for failing to meet targets
- Stellantis opposes any delay in EU rules on vehicle emissions
- Italy cuts funding for Stellantis, Mercedes EV battery plant
- China’s Nio mulls purchase of Audi’s Brussels plant
- Mercedes-Benz cuts margin outlook on weak Chinese market
- Volkswagen may book up to $4.4 billion in provisions on capacity cuts
- VW and China partner SAIC set to close car plant as sales shrink
- UAW clashes with Stellantis, threatening Strike
- US new auto inventory increased in August to 3rd highest for the year. Days of inventory at 77 with 15 brands struggling with more than 100 days of inventory
Industrial
- China August industrial output misses expectations
- US manufacturing output rebounds in August
IP&E
- TE announced reorganization of company’s segments; Steve Merkt, president of Transportation Solution to be replaced by Aaron Stucki
- German wire harness maker Leoni acquired by Chinese electronics company Luxshare
Semiconductors
- ADI and Tata sign MoU to explore opportunities for semi ecosystem in India
- China claims chipmaking gear advance despite tightening US curbs
- Intel qualifies for $3.5 billion in grants to make chips for US military
- Intel announced it will build AI chips for AWS
- Intel says it has no plans to divest majority stake in Mobileye
- Germany finance ministry argues against subsidizing Intel’s fab buildout after Intel delays plans; Chancellor Scholz reiterates commitment
- Samsung secures 2nm foundry win with Ambarella
- US and Japan near deal to curb chip technology exports to China
- Lattice appoints Ford Tamer from Inphi as new CEO
Other
- US retail sales unexpectedly rise in August
- Short iPhone 16 shipping times signal soft initial demand
- Port strike on US East Coast would spark supply-chain glitches from outset, shipping firm exec says
