Electronics Supply Chain Weekly Digest 11-10-23.
DATAPOINT OF THE WEEK: China light vehicle production and sales maintain a strong momentum in October according to China Association of Automobile Manufacturers (CAAM). Light vehicle production and sales were relatively flat M/M on a wholesale basis at ~2.5M units. Commercial vehicle production improved 7% M/M and 43% Y/Y to 380K, the highest since Dec-21; sales, however, were more stable at down 2% M/M. NEV production surged 12.5% to 989k, setting a new record, indicating acceleration on both Y/Y and M/M basis. Vehicle exports from China also remained strong, increasing 10% M/M and 42% Y/Y to 488k units, of which 124K were NEVs (up 29% Y/Y and 12% Y/Y).
Headlines:
Auto
- BYD plans to build its first European factory in Hungary
- CPCA China retail auto sales increased 10% Y/Y in Oct; NEV up 3% M/M
- Neo, Li Auto, and Xpeng have given bullish 2024 production forecasts to suppliers, projecting 50-100% increase
- Continental raised 2023 auto production outlook but warns of slower growth in 2024; highlights inventory reduction amid improving supply chain
- Germany new car sales remained subdued in October despite a slight M/M rebound in xEVs
- Lucid cuts prices of its luxury sedan vehicles
- Polestar trimmed 2023 EV production forecast and warned of slowing EV demand
- Tesla plans to build €25,000 cars in Germany for the European market
- Tesla again raised prices of long-range Model Y in China
- UK new car sales increased 14% Y/Y in October; 2023/2024 outlook lifted
- US new car retail sales increased 3% Y/Y in October offsetting declines in commercial fleet sales
- New vehicle inventory surged 9% M/M and 7 days to 2.4M units and 67 days despite UAW strike
- US used car prices declined 2.3% in October says Cox
- VW pauses production of EVs in Germany due to shortages of electric motors
- VW plans to sell a $35K EV in the US in 3-4 years
Datacenter/Telco
- Siemens to invest $150M in new manufacturing plant in the US for datacenter and infrastructure products
IP&E
- Murata to establish a new R&D center in Japan
- Molex expands manufacturing in Poland for Medical and EV applications
Semiconductors
- Baidu has placed AI chip orders with Huawei reports Reuters
- German government clears plans for Bosch, Infineon, NXP to form JV with TSMC
- Intel in lead to get billions for secure defense-chip facilities
- Intel puts on hold plans to expand back-end operations in Vietnam
- Intel plans to transfer silicon photonics business to Jabil
- Nvidia plans to release three new chips for China, conforming with recent US import restrictions
- China AI startup stockpiled 18 months of Nvidia chips before ban
- NXP expands S32 MCU portfolio
- Onsemi reverses stance, launching in-house production of CMOS image sensors in 2024
- Tokyo Electron lifts outlook after China chip growth quickens
- TSMC reports strong October revenue on rebound in advanced chip orders
- SMIC sees revenue trending lower in 2H23
- Vanguard Foundry cuts in 2023 capex outlook for the third time citing continued inventory digestion and weak demand
- Vishay to buy Newport Fab from Nexperia for $177M; aiming production of SiC and GaN
Consumer/EMS/Distribution
- Price wars during Chinese shopping fest expose consumer woes
- 3Q23 smartphone AP shipments surged 48% Q/Q but growth seen as temporary says DigiTimes
- Xiaomi new smartphone sold out after shipping 1 million units since Oct 31
