Electronics Supply Chain Weekly Digest 1-24-25.
DATAPOINTS OF THE WEEK: New car registrations in Europe upticked in Dec but sales for the year disappointed, finishing almost flat at 13M units, which is 17% below the average pre-COVID level from 2016 to 2019, according to ACEA data.
Dec registrations increased 4% Y/Y, improving slightly compared to the declines over the last 4 months, though M/M the uptick was below seasonal. BEV sales were flat y/y in Dec and for the year with declines in France, Germany, and Italy offset by growth in Spain and the UK.
PHEV sales grew 3% y/y in Dec, but declined 4% for the year, while HEV sales finished the year strengthening resulting in 20% growth in 2024. ICE sales declined 11% in Dec and 8% for 2024 and exited the year at a record-low 39% penetration.
S&P reported Jan US flash mfg PMI improved to a 7-month high of 50.1 vs 49.4 in Dec with output subindex improving to 50.2 in Jan vs 47.7 in Dec and orders returning to, albeit modest, growth for the first time in seven months. S&P added optimism about the upcoming year surged in Jan to the highest since March 2022 on expectations for looser regulation, lower taxes, and heightened protectionism.
In Europe, manufacturing activity also appears to have improved to an 8-month high in Jan though it remained in a downtrend with a flash PMI of 46.1 vs 45.1 in Dec. Orders and output were noted as continuing to contract, albeit at the smallest pace since August 2024 while business outlook was noted as stable to start 2025 with companies remaining optimistic that output will increase over the coming year.
Headlines:
Auto/Transportation
- Automotive sensor market projected to hit $14.3B by 2029 says Yole Group
- China Auto retail sales from Jan 1-19, down 5% Y/Y; NEV sales up 26% Y/Y.
- EU preparing for bloc-wide EV incentive plan
- Hyundai Motor forecasts slowing revenue growth in 2025 after Q4 miss
- Rivian to launch hands-free driving system in 2025, ‘eyes-off’ in 2026
- Tesla raising prices for its vehicles in Canada on Feb. 1
- Trump revokes Biden 50% EV target, freezes unspent charging funds
- US EV sales surged in late 2024, reaching 109k units in Nov according to S&P Global Mobility
- Volkswagen to make additional investments in US, CFO says
- Speculation emerges over Xiaomi’s potential acquisition of NIO
- Xiaomi CEO shares data showing SU7 outsold Tesla Model 3 in China in Dec
Datacenter
- ByteDance plans $12B investment in AI chips for 2025 expansion
- China has launched a $8.2B AI investment fund to boost its AI self-sufficiency
- Meta plans to end 2025 with 1.3M GPUs and $60-65B spent on AI
- Trump announces private-sector $500B investment in AI infrastructure
Industrial
- Trump tariff threats send aerospace suppliers scrambling to cushion blow
- Suppliers temporarily halt equipment export amid policy uncertainty from China
- Japan November machinery orders beat forecast on strong factory investment
- Japan factory activity sinks to lowest level in 10 months, PMI shows
- Trump halt on offshore wind power leases, hitting European companies
Semiconductors
- Aptiv plans to spin off electrical distribution systems business
- GlobalFoundries to invest $575M in New York advanced packaging and photonics center
- Southern Taiwan earthquake: TSMC operations unaffected, impact assessment ongoing
- u-blox announces strategic focus shift, phasing out Cellular business and prioritizing Locate business
- WT Microelectronics expects sustained AI demand in 2025, optimistic about recovery in automotive and industrial sectors
Consumer/Other
- China launches subsidy plan to boost consumer electronics sales
- Compal and Inventec are considering expanding operations to the US
- Global smartphone market grew by 4% in 2024 after two years of decline, according to Counterpoint
- No day-one tariffs from Trump, but he says Canada, Mexico may get duties Feb 1
- Trump delivers fresh tariff threats against EU and China
- Foxconn and Taiwanese manufacturers boost US expansion amid potential Trump tariff hikes