Electronics Supply Chain Weekly Digest 10-13-23
China NEV retail sales in September reached 746K units surpassing the 700k mark for the second time, according to China Passenger Car Association (CPCA) data, reflecting 22% Y/Y and 4.2% M/M increase. The figure, however, missed the 750K estimate from CPCA at the end of August. BEV accounted for 500K retail units up 9% Y/Y and 1.9% M/M. PHEV sales totaled 246K units, up 60% Y/Y and 9.2% M/M.
Total auto retail sales in September reached 2.018 million units, up 5% Y/Y and M/M, reflecting the strongest Y/Y growth since May 2023. NEVs accounted for 37% of all light vehicle sales, consistent with the prior month but up from 32% a year ago. Exports grew 50% in September year-on-year following a 31% gain in August, the data showed. According to the China Association of Automobile Manufacturers (CAAM), production of passenger vehicles in September totaled 2.496M, up 10% Y/Y and 4% M/M while production of commercial vehicles totaled 350K, up 35% Y/Y and 18% M/M, both surpassing expectations. According to CAAM officials China auto sales are expected to exceed the initial target of 3% growth for the year with volume likely exceeding the market peak from 2017. 3Q23 China retail sales increased 2% Y/Y while wholesale sales were flat.
Headlines:
Auto
- GM reaches deal with Canadian autoworkers hours after union initiates strikes
- US proposes $270K fine for joint venture GM battery plant due to health and safety violations
- BMW and Mercedes Benz reported 3Q sales decline in China vs. flat 3Q sales in the country
- Ford says it is ‘at the limit’ with UAW contract offer
- EV sales in the US increased 50%, surpassing 300k in 3Q; penetration up to 8% says Cox
- SK says US-China tensions will keep EV battery costs elevated
- Chinese raw material suppliers for EV batteries pursuing deals with U.S. free-trade partners to bypass US restrictions
- Li Auto sets aggressive targets, aiming for 3 million car sales assuming xEVs reach 90% penetration in China by 2028
- Porsche global shipments continue to grow except in China
- Porche recalls 2,500 Taycan EVs in China over battery safety concerns
- Stellantis and Samsung plan to build a second EV battery plant in Indiana
- Stellantis Union in Italy cut its 2023 production forecast citing weakening demand
- Tesla China sales down 11% Y/Y in Sep; exports surge 50%
- UAW unexpectedly strikes at Ford’s highly profitable SUV plant in Kentucky signaling a setback in negotiations
- UAW workers strike at Volvo’s Mack Truck plant, rejecting contract proposal
- UAW says new strikes at Detroit Three will come without notice
- US Auto sales continue to be led by fleet sales in September says Cox Automotive
Datacenter/Telco
- Ericsson 3Q N.A. sales dropped 60%; Ericsson taking a $2.9B impartment of a year-ago acquisition
Aerospace
- Boeing deliveries of 737 MAX fell in September to the lowest level since August 2021
Semiconductors
- ASE Sep revenue at 10-month high but 4Q uncertainty remains from continued inventory digestion
- Amkor to open advanced packing plant in Vietnam next week focusing on CoWoS capacity
- AMD to buy open AI software firm Nod.ai
- Denso and Mitsubishi Electric to invest $500M each in Coherent’s SiC business
- onsemi announced Hyperlux LP family of image sensors
- Littelfuse announced IXYS branded automotive grade P-Channel MOSFET
- Microchip announced new family of PIC 32-bit MCUs with integrated Hardware Security
- SK Hynix, Samsung and TSMC received approval from the US to import advanced semi equipment in China
- Kioxia and WDC expected to agree on a merger by the end of Oct says Japanese news report
- Chinese Nexchip foundry announced 10,000 WSPM expansion of mature edge IC capacity
- The war in Israel creates risk to semi supply chain disruptions with Tower Semia and Intel fabs most at risk
- Samsung preliminary 3Q results better than feared
- Vishay announced 8-inch foundry services LTSA with Korean Key Foundry
- Qualcomm planning 1300 job cuts in California
- TSMC to see 3nm accounting for 4-6% of revenue in 2023
Consumer/EMS/Distribution
- Apple planning an OLED iPad upgrade in 2024
- Farnell partners with Mean Well for distribution of power supplies
- 3Q PC shipments increased 11% Q/Q; ODM see flat 4Q shipments; TrendForce forecasts 2-5% rebound in 2024
- Huawei is stocking up on parts to double its mobile phone shipments in 2024 to 60-70M; wants Qualcomm to hand over full-year orders in the 1H24
- Quanta to invest $80M on AI server capacity expansion in the US
- Taiwan distributors reported double-digit growth in 3Q sales on better demand from mobile and CE
- Wiwinn opened server assembly plant in Malaysia; planning phase 2 expansion in 2024
