Electronics Supply Chain Weekly Digest 10-9-26.
DATAPOINT OF THE WEEK: China and the EU reached a “shared understanding” that could cut Chinese hybrid and plug-in hybrid car exports to the bloc by more than half, reducing imports by several million vehicles over four years, though EU Trade Commissioner Sefcovic didn’t say how it would be enforced. The deal follows a surge in PHEV shipments, with EU imports up 86% YTD and China supplying more than half, and a broader push by Brussels to narrow a trade deficit that cost the bloc over €1B a day last year. The two sides also agreed to improve EU market access in China and speed up rare earth and permanent magnet export licensing via a “green channel,” while continuing talks on price undertakings tied to the EU’s anti-subsidy duties on Chinese EVs. A follow-up ministerial video call is set for January, with the next formal consultation round in March 2027.
Headlines:
Auto/Transportation
- BYD management says geopolitics is company’s number one expansion challenge, will hold off US shipments
- EU and China reach understanding to moderate Chinese hybrid exports, potentially cutting volumes by more than half, Bloomberg reported
- Geely announces plans for 2027 Canada launch, becoming the first Chinese mass-market EV maker in NA, according to Bloomberg
- Mercedes-Benz announces 8% Y/Y 3Q car sales decline on China weakness as BEV deliveries jump 52% Y/Y
- Mexican auto exports fall 12% Y/Y in September, the steepest drop since December 2025, as US tariffs weigh on the sector, according to Reuters
- Polestar nears US sellout of 2026 models ahead of 2027 ban on China-linked connected vehicles, according to Reuters
- Stellantis Italy output set to rebound this year after two-year decline, driven by Jeep Compass and hybrid Fiat 500
- Stellantis says Wayve partnership can cut level 2++ driver-assist costs and development time
- Tesla’s China-built EV sales extend rebound into 11th straight month as European recovery continues, according to Reuters
- Waymo closes first debt financing with $5B term loan to fund driverless ride-hail expansion, according to Reuters
- Xiaomi reports more than 70K non-refundable orders for newly launched SkyNomad SUV in first month, per Bloomberg
Datacenter
- OpenAI’s September annualized revenue reportedly neared $50B, falling short of prior internal signals, Financial Times reported
- Oracle is reportedly trucking compressed natural gas to datacenters to bypass pipeline delays, with New Mexico’s Project Jupiter the next candidate, per Bloomberg
- EIA projects US power demand to hit record highs in 2026 and 2027 on AI datacenter and electrification growth
Connectivity
- Marvell raises long-term revenue outlook as custom AI silicon ramp drives multi-year growth
Industrial
- Airbus announces 72 September deliveries, on track for 870-unit full-year target
Semiconductors
- AMD announces continued exploration of memory and foundry partnership with Samsung amid tight supply
- Global chip sales cross $1T YTD for the first time, with 2026 on track to top $1.6T
- GlobalFoundries announces $2B deal to supply TSMC with silicon interposers for AI chip packaging, as reported by Reuters
- Microchip and Navitas announce 800V-to-6V reference design for AI datacenter racks combining digital control with GaN power stages
- Micron Taoyuan union in Taiwan secures strike authorization in bonus dispute
- Notebook shipments projected to decline in 2027 as DRAM and CPU cost pressure replaces supply constraints as top risk, TrendForce reported
- Samsung flags fourth straight record quarter as AI memory shortage deepens into 2028
- SpaceX reportedly seeks $40B financing to buy Nvidia AI chips, Reuters reported
- TSMC could raise 2nm wafer prices another 6%-8% in 1Q27 as advanced-node demand strengthens, as reported by SemiMedia
- TSMC posts record 3Q revenue up 50% Y/Y on AI chip demand, ahead of expectations, per Reuters
- Wolfspeed announces conditional $1.5B US Defense Department loan to expand domestic SiC production and upgrade GaN capabilities
Consumer/Other
- Apple cuts iPhone 18 Pro component orders at least 15% as memory costs and price hikes weigh on demand, according to Nikkei
