Electronics Supply Chain Weekly Digest 11-21-25.
DATAPOINT OF THE WEEK: S&P reported November HCOB Flash Eurozone mfg PMI declined to 49.7 from 50.0 in October, marking a five-month low.
The decline was driven by weak demand and a slowdown in new orders as customers continue to reduce inventories of both intermediate and finished goods as the inventory cycle shows no signs of turning upward.
German HCOB Flash PMI declined more significantly to 48.4 from 49.6 in October, marking a six-month low. Despite production rising slightly M/M, new orders have dropped significantly. US flash PMI slightly increased to 54.8 in November from 54.6 in October, a four-month high supported by the largest increase in new orders since Dec-24.
Headlines:
Auto/Transportation
- GAC to build Aion V at Magna’s Graz plant to avoid EU tariffs and localize EV production to bypass EU tariffs of up to 37.6% on China-made EVs
- Lucid launches lower-priced $80k Gravity Touring SUV to broaden demand and boost volumes amid supply-chain challenges
- Tesla directs suppliers to exclude China-made components in US production amid trade tensions and chip risks, according to WSJ
- Xiaomi raises 2025 EV delivery target to 400k after first quarterly profit, eyes Europe expansion by 2027
- XPeng posts $2.87B 3Q revenue on 149% Y/Y delivery growth supported by new mid-to-low end Mona M03 model, narrows net profit loss, and warns of 4Q challenges
Datacenter
- Amazon announced it will invest at least $3B to build a datacenter campus in Warren County, Mississippi
- GMI Cloud announces plans to build $500M AI datacenter in Taiwan with 7K Nvidia GPUs, supporting $1B in contracts
- Google to invest $40B in Texas by 2027 for cloud, AI, and energy infrastructure expansion, supporting local US compute capacity
- AMD, Cisco, and Humain form JV to deploy up to 1GW of AI infrastructure in Saudi Arabia by 2030
- South Korea to join UAE in US-backed Stargate AI campus with 1GW data center involving OpenAI, Nvidia, and Cisco
- xAI announced plans to develop a 500 MW datacenter in Saudi Arabia in partnership with venture Humain, utilizing chips from Nvidia
IP&E
- Arm announces plan to integrate Nvidia NVLink into Neoverse chips to boost AI datacenter performance
- MicroLEDs emerge as low-power, high-performance AI interconnects, outperforming copper and traditional optics
- Nvidia’s networking revenue hits $8.2B in 3Q on strong NVLink, InfiniBand, and Spectrum-X demand
Semiconductors
- Amkor planning to invest $177M in South Korea to expand AI chip packaging and testing at Songdo by 2027, according to DigiTimes
- ASML says AI driving strongest semiconductor growth cycle, unveils I-line XT:260 for high-volume advanced packaging
- Ecarx shifts focus from China to global markets, aims for 50% non-China revenue by 2030 and $2B business through potential merger, says Bloomberg
- Foxconn announces pans to build $1.4B supercomputing center with Nvidia in Taiwan, Asia’s first Blackwell GB300 AI data center
- Foxconn partners with OpenAI to produce AI datacenter racks and hardware, expands US manufacturing and automation initiatives
- GlobalFoundries to acquire Advanced Micro Foundry, expand silicon photonics capacity and R&D for AI and high-speed applications
- Global semiconductor revenues projected at $743B in 2025, US leads with 56% market share as China shifts toward domestic sourcing, says Yole
- Global electronic sensor market to grow to $41.2B by 2032, led by APAC and industrial applications, according to Credence
- Netherlands reportedly lifts ministerial order on Nexperia, restoring partial semiconductor supply for Europe’s auto sector, according to DigiTimes and SemiMedia
- Nvidia posts $57B 3Q revenue on data center demand, guides $65B for 4Q with Blackwell driving growth
- Rising memory costs push Nvidia and AMD to reconsider mid- and low-end gaming GPU production, with price hikes expected
- Nvidia’s switch to LPDDR for AI servers could double memory prices by 2026, straining suppliers and high-end markets, says Counterpoint Research
- Samsung to supply up to 40% of Nvidia’s HBM4 memory by 2026, leading performance and efficiency among suppliers, according to DigiTimes
- South Korea names SiC power semiconductors strategic, SK Group to lead full domestic supply chain by 2030, says SemiMedia
- Tesla to build in-house TeraFab wafer facility to meet surging AI chip demand, complementing Samsung and TSMC partnerships, according to DigiTimes
- TSMC’s US subsidiary sees 3Q profit decline amid Arizona fab build, 3nm mass production set for 2027, says TrendForce
- US lawmakers propose bill barring CHIPS Act recipients from buying Chinese chip equipment for 10 years, with limited waivers
- US charges four people for illegal Nvidia GPU exports to China, fueling calls for Chip Security Act
- US signals potential delay on semiconductor tariffs to avoid supply chain disruption and ease China tensions, says Reuters
- d-Matrix advances 3D DRAM in-memory compute with Raptor AI accelerator in partnership with Alchip and Andes
Consumer/Other
- China restricts yttrium exports, driving global price surge and spurring US supply chain efforts
Source:
Edgewater Research
