Electronics Supply Chain Weekly Digest 10-25-24.
DATAPOINT OF THE WEEK: S&P reported US Oct mfg flash PMI of 47.8 vs 47.3 in Sep reflecting a continued decline in output and new orders, albeit at a moderating pace compared to Sep.
S&P noted inventory of finished goods rose for the fourth consecutive month keeping the forward-looking order-to-inventory ratio at one of the lowest levels seen since the global financial crisis, signaling continued production weakness near term.
S&P reported Eurozone Oct flash mfg PMI of 45.9 vs 45.0 in Sep reflecting a continued notable decline in activity, albeit at a moderating pace M/M. S&P noted employment in Europe’s mfg sector declined for the third month running and business confidence dropped for the fifth consecutive month to the lowest of the year.
Headlines:
Auto
- China’s CATL unveils new battery for extended-range hybrids
- China asks carmakers to halt Europe expansion over tariff spat
- China’s auto sector profit drops below 5%: CR Micro chief warns against reckless expansion
- China xEV retail sales remain strong, projected up 2% M/M in October says CPCA
- EU, China agree to more talks on potential alternatives to EV tariffs
- Europe new car sales better-than-feared in September with jump in BEV sales in France and UK
- GM tops sales and profit estimates amid resilient demand for large SUVs and trucks
- GM Sees EV squeeze as Canada swaps subsidies for deadlines
- Mercedes pledges cost cuts after China slump hits margin
- ZF to quit Wolfspeed’s German chip project says Reuters
- Tesla CEO Elon Musk projects 20-30% vehicle unit growth in 2025
- Volvo cuts 2025 sales growth forecast to 7-8% from 12-15% back in July
- US new Auto SAAR forecasted stable at 15.8M in Oct
IP&E
- Amphenol reported 26% Y/Y increase in 3Q revenue driven by strength in IT datacom and Mobile Devices
Industrial
- Boeing workers reject the latest offer, leaving Boeing factories idle
Semiconductors
- Arm to scrap Qualcomm chip design license in feud escalation
- US extends 25% chip tax credit to wafers, including solar
- Intel reiterates commitment to invest $28B in two fabs in Ohio
- Intel seeks foundry alliance with Samsung foundry
- Intel seeking to sell a stake in Altera
- Mature process capacity to grow 6% in 2025; Chinese foundries lead expansion, says TrendForce
- TSMC halts chip supply to customer after finding it in Huawei product
- TSMC’s Arizona fab yields have surpassed Taiwan’s
- TSMC to hike sub-5nm prices by 8-10% in 2025
- SK Hynix sees no signs of HBM oversupply as profit soars to record
- SiC substrate price correction may continue in 2025, says GCCS
- Nvidia’s design flaw with Blackwell AI chips now fixed, CEO says
- TXN beat 3Q expectations but guides below as end market trends remain mixed with softness continuing in Industrial
- TI adds 200mm GaN power semiconductor production in Japan, quadrupling internal capacity
- Qualcomm, Alphabet team up for automotive AI
- Wafer shipments to remain soft in 2024 before strong rebound in 2025 says SEMI
Other
- Apple’s Q3 China smartphone sales slip, Huawei’s soar says IDC