Wk 4 Electronics Supply Chain Digest

Electronics Supply Chain Weekly Digest 1-23-26.

DATAPOINT OF THE WEEK: &P reported that the January Flash Eurozone mfg PMI increased to 49.4 from 48.8 in December, hitting a two-month high, as production returned to growth with new orders rising for the sixth consecutive month. However, new export orders continue to be restricted by new export orders. Germany’s flash mfg PMI also slightly ticked up to 48.7 in January from 47.0 in December. Similar to the Eurozone, Germany also returned to growth after slipping into contraction in December following 10 months of growth. Additionally, new orders marginally up ticked after declining the prior two months. US Flash PMI reached 51.9 in January, up slightly from 51.8 in December, with new orders growing after declining in December, though growth slowed to is second lowest level since July-25..

Headlines:

Auto/Transportation

• EU denies investigation into Chinese hybrid vehicles, no tariffs planned
• Continental reported preliminary FY sales of ~$23B, which is at the lower end of its guidance range of $23-25B
• Cao Cao Mobility, Geely ride-hailing arm, plans to deploy 100K robotaxis by 2030, Geely also announces plans to sell 6.5M vehicles annually by 2030
• GM is relocating production of the Buick Envision SUV from China to its Kansas City-area assembly plant, starting in 2028, per Reuters
• Japan automakers partner with chipmakers to build semiconductor supply chain risk database, according to Nikkei
• Mazda shifts EV strategy, delays in-house production and leans on China-made models for global markets, according to Nikkei
• Mercedes is scaling back its L3 driving functionalities due to limited market demand and high costs, instead focusing on L2+ systems and urban navigation assistance
• Tesla launches driverless robotaxi rides in Austin, eyes near-term FSD approvals in Europe and China
• Renault posts modest volume growth in 2025, led by strong international demand and electrified models
• Tesla flags slow initial ramp for Cybercab and Optimus, targets volume Cybercab production this year
• Volvo launches EX60 EV SUV in Europe, targets broader EV adoption with competitive pricing
• Waymo has initiated its robotaxi service in Miami, offering rides to the public across a 60-square-mile zone, per Bloomberg
• Xpeng expands global footprint, surpasses 1K sales outlets and accelerates overseas growth

Datacenter

• NTT Data and Tokyo Century expand Chicago datacenter JV, adding third building with 104MW capacity, according to Nikkei

Industrial

• Taiwan unveils $39.5B defense plan, prioritizing drones with plans for approximately 200k units, AI, and high-tech military capabilities, says DigiTimes
• US positioned to meet AI-driven energy demand, says former Trump tech adviser

IP&E

• Nittobo ramps fiberglass production in Japan and Taiwan to meet AI server demand, says DigiTimes
• Taiwanese firms ShunSin Technology and Winstek Semiconductor gear up for silicon photonics shift, according to DigiTimes

Semiconductors

• Anthropic’s CEO stated this week that shipping advanced AI chips to China would be a significant error
• Bill Gates’ venture fund, Microsoft’s investment arm, and Saudi Aramco Ventures are investing $110M in Neurophos Inc., a startup developing advanced chip technology for AI acceleration
• China semiconductor industry pushing for advancing LPDDR6 development with domestic firms such as Innosilicon and CXMT
• EU proposes 36-month phase-out of high-risk non-EU tech in 18 critical sectors, drawing criticism from Huawei
• Intel beats Q4 expectations on DCAI strength, guides below expectations for 1Q26 amid supply constraints
• Kioxia warns of tight NAND supply through 2027 as AI demand drives prices up 30%+
• Jensen Huang is reportedly planning to travel to China in late January, aiming to reconnect with the critical market for the company’s AI chips, according to DigiTimes
• Pegatron targets March completion for first US factory in Texas, to produce Nvidia AI servers, says Reuters
• PSMC ramps DRAM production with 12-inch wafer upgrades, Micron collaboration to meet AI-driven demand
• Jensen Huang revealed that the company has become TSMC’s largest customer, driven by surging demand for AI computing chips and datacenter infrastructure
• US Commerce Secretary warns Samsung and SK Hynix of up to 100% tariffs if memory chips aren’t made domestically
• Samsung to start EUV test operations at Texas fab in March, full production for Tesla AI chips planned 2H26
• Google outsources next-gen TPU server assembly to Inventec, targeting 3.3M units in 2026, according to DigiTimes
• China signals potential approval for Nvidia H200 AI chip imports, with Alibaba, Tencent, and ByteDance preparing large orders, says Bloomberg
• Vietnam breaks ground on first domestic semiconductor fab, aiming for full-cycle production and 50K trained engineers by 2030, according to DigiTimes

Consumer/Other

• China rare earth prices rise for sixth straight quarter, driven by EV and renewable demand, tightening export controls
• European Parliament President suggested that the EU is likely to resume ratification of a trade deal with the US, following the pause after US President Trump announced the Greenland tariffs
• Japan begins experimental deep-sea rare earth mining near Minamitorishima to reduce reliance on China