Electronics Supply Chain Weekly Digest 11-6-26.
DATAPOINT OF THE WEEK: S&P reported Oct Eurozone mfg PMI decreased to 52.7 from 52.9 in Sept, remaining in expansion for the ninth consecutive month, with declines in France and Italy hindering further expansion. S&P noted that increased defense spending and precautionary inventory building are supporting expansion. Germany’s mfg PMI increased to 54.2 from 53.9 in Sept, remaining in expansion as new orders and production continue to grow, albeit at slower rates, with new export orders noted as accelerating. S&P reported US mfg PMI declined in Oct to 54.9 from 55.9 in Sept, marking the fifteenth straight month of expansion, though new orders and production grew at slower paces M/M, with S&P noting strong demand for AI-related goods straining supply chains. ISM US mfg PMI increased to 55.5 from 54.5 in Sept. RatingDog China mfg PMI decreased slightly to 52.0 from 52.1 in Sept, marking the eleventh straight month of expansion, with output growing at the fastest pace since April on solid new orders driven by new product launches and improved production capabilities, though selling prices fell amid intense competition. China’s government mfg PMI returned to contraction territory at 49.3 from 50.1 in Sept.
Headlines:
Auto/Transportation
- Audi considers $3B second phase at Georgia assembly plant, adding to initial $4B buildout
- BMW announces second cut to 2026 margin guidance as restructuring charges and China weakness weigh
- Stellantis announces extension of Fiat 500 production stoppage at Mirafiori to a fourth straight week on chip shortage
- Tesla’s China-made EV sales growth accelerates in October, extending streak to 12 straight months, Reuters reported
- Toyota raises annual operating profit forecast 15% on hybrid demand and weaker yen, offsetting China slide
- Toyota and Waymo announce plans for 2027 robotaxi launch in Japan using bZ4X EVs with Level 4 autonomy
Datacenter
- Governments from New York to the Netherlands tighten datacenter restrictions on power, water, and permitting, per Reuters
- Google announces $17B Wyoming datacenter as political resistance to AI infrastructure buildout mounts after US midterms, according to Reuters
- Meta announces $15B five-part bond sale to help fund accelerating AI infrastructure investments
- Microsoft has reportedly tightened oversight of neocloud datacenter projects from Nebius, IREN, and Nscale, as reported by Bloomberg
- Oracle reportedly cancels $7B Tencent AI chip leasing deal under Trump administration pressure, as reported by Financial Times
Connectivity
- AI networking value shifts toward scale-up interconnects and 1.6T optics as market heads to $279.8B by 2027, according to TrendForce
- Marvell announces acquisition of Lumentum, creating a combined electro-optical player that could challenge Broadcom’s AI interconnect lead, according to TrendForce
- Palomino Laboratories announces first commercial order for GaN Micro LED optical interconnect chips from hyperscale cloud customer
- Panasonic Taiwan plant fire reportedly puts 4% of global high-end CCL supply at risk, per TrendForce
Industrial
- Airbus announces January-October deliveries up 6.2% Y/Y to 621 jets, leaving 249 to hit its 870 full-year target
Semiconductors
- AMD beats and raises on Datacenter strength, guides CY27 revenue up 80%+ as CPU outlook doubles
- Apple warns of unprecedented memory chip costs squeezing margins as AI datacenter demand absorbs supply
- Arm guides F3Q26 revenue slightly ahead of expectations and targets $2B in AGI CPU sales across FY27 and FY28, Reuters reported
- Bosch announces plans to spin off semiconductor division in January 2028 to run as foundry alongside in-house supply
- Diodes posts 3Q profit of $43.7M on $532.6M revenue as Gross Margin recovery gains momentum
- Europe pledges about $589.6M for chip startups in push to narrow design and manufacturing gap with US and China
- Global chip sales mark third straight quarter of 20%+ sequential growth in 3Q26, led by Americas, according to the SIA
- Micron reportedly pauses $4.5B Taiwan memory fab over labor dispute, per Bloomberg News
- Roughly 600K Nvidia H200 AI chips are reportedly stockpiled in Hong Kong as Beijing withholds large-volume import approvals, Reuters reported
- Qualcomm handset chip revenue falls 26% as memory costs and Apple roll-off pressure core business
- Alphabet discloses $548M Qualcomm stake as chipmaker pushes deeper into AI datacenter silicon, as reported by Reuters
- Qualcomm announces its biggest 5G deal yet to supply Starlink Mobile’s planned nationwide US terrestrial network, according to Reuters
- Skyworks announces F1Q26 revenue guidance below expectations on premium Android weakness as Qorvo acquisition closes
- TSMC reportedly weighs push into 3D DRAM at Nvidia’s request, potentially setting up competition with Samsung, as reported by Reuters
- Vishay posts 24% Y/Y revenue growth in 3Q26 on distribution push and industrial/AI passives demand
