Electronics Supply Chain Weekly Digest 11-26-25.
DATAPOINT OF THE WEEK: New car registrations in Europe decreased 9.1% Y/Y and 23.4% M/M, a significant decline after seeing strong growth both Y/Y and M/M in September following the Holiday period in Europe, according to ACEA data.
BEV sales surged 33.0% Y/Y but declined 13.4% M/M, making October the 9th month in the last 10 to see Y/Y BEV growth. BEVs accounted for 23.8% of the market in October, up from 16.3% in October 2024. PHEV sales also saw significant Y/Y growth, rising 40.7% but declined 11.9% M/M.
This marks the 8th straight month of strong double-digit Y/Y growth, including the last 4 months having >40% Y/Y growth. HEVs increased 7.7% Y/Y but declined 14.2% M/M in October. HEVs now account for 39.4% of the market, up from 33.3% in October 2024. ICE registrations declined 47.6% Y/Y in October, marking its 16th straight month of Y/Y declines.
Headlines:
Auto/Transportation
- Europe’s automakers urge Brussels to ease 2035 combustion-engine ban amid EV adoption lag and Chinese competition, according to Reuters
- Global NEV sales reached 5.39M units in 3Q, up 31% Y/Y, with BEVs at 3.71M up 48% Y/Y and PHEVs at 1.67M 4% Y/Y, according to TrendForce
- Great Wall Motor targets 300k annual European vehicle production by 2029, weighing Spain and Hungary sites amid Ora EV sales slump, says Reuters
- Honda to fall to fourth among Japanese OEMs in 2H26 as NA chip shortage cuts sales to 1.66M; Suzuki rises to second, Honda’s profit down $956M
- Li Auto 3Q revenue falls 36% Y/Y with 4Q guidance missing expectations amid supply, recall, and competitive pressures
- Nio 3Q net loss narrows and gross margin improves on new models, 4Q guidance of $4.8B revenue and 120–125k deliveries misses expectations
- Stellantis is increasing Citroën production, bringing total annual output to 300k, supported by strong European demand, says Reuters
- Tesla’s global deliveries expected to fall 7% in 2025, with Europe seeing the steepest, according to Visible Alpha
- Elon Musk announced plans to double the number of robotaxis in Austin, Texas in December
- Tesla clashes with Dutch regulator RDW over FSD approval, with company claiming February 2026 green light while RDW denies commitment, according to Bloomberg
- VW announces opening of €2.5B Hefei test center to cut EV development costs by 50% and speed projects 30%
Datacenter
- Alibaba Group reported 34% growth in its cloud business and overall revenue rising 5% to ~$35B in 3Q, driven by increasing AI demand
- AWS to invest up to $50B in US government AI and HPC services, adding 1.3 GW of datacenter capacity
- Dell posts $27B 3Q revenue, driven by AI server demand, raises FY26 AI forecast to $25B and 4Q guidance to $31–32B
- HPE secures $931M DISA contract to modernize US defense data centers with a 10-year hybrid multi-cloud GreenLake deployment
Industrial
- China added 12.6 GW of solar capacity in October, rebounding from September, according to the National Energy Association
IP&E
- Astera Labs launches Leo CXL memory controllers for Microsoft Azure M-series, enabling 2 TB per controller and 1.5× scaling for AI and memory-intensive workloads
- Guangdong Fenghua raises prices up to 30% on inductive beads, varistors, capacitors, and resistors amid rising silver, tin, and copper costs, says DigiTimes
Semiconductors
- ADI F4Q revenue of $3.08B beats on Auto strength, F1Q guidance above expectations; outperformance may moderate in FY26
- ASML facing scrutiny after reports that the company secretly provided the US government with intelligence about China’s semiconductor sector, according to DigiTimes
- Chinese regulators have barred ByteDance from using Nvidia chips in new data centers, as Beijing pushes for domestic semiconductor reliance amid ongoing US-China tech tensions, says Reuters
- CATL will build Spain’s largest battery factory in Figueruelas, a €4.1B project with Stellantis, supported by over €300M in EU funds, aiming to start production in late 2026, according to Reuters
- Ongoing DDR4 shortage pressures margins across industrial, networking, and consumer sectors, while AI and 5G demand may ease impact, says DigiTimes
- European Commission approves €450M Czech grant for onsemi’s €1.64B SiC power device plant, with operations expected by 2027
- Foxconn has secured regulatory approval for a $569M investment in its Wisconsin facility, aimed at expanding its AI server business and strengthening US supply chain
- Global DRAM industry revenue surged 30.9% Q/Q to $41.4B in 3Q, driven by higher conventional DRAM contract prices, increased bit shipments, and growing HBM volumes, according to TrendForce
- Japan’s AIST opens pilot line for GAA transistors to support 2nm chip development, according to DigiTimes
- Meta in talks to buy billions in Google TPUs in 2027, potentially challenging Nvidia’s AI dominance, according to Reuters
- Trump weighing limited approval for Nvidia H200 AI chip sales to China amid early US discussions, following recent trade truce
- Rapidus to build second Hokkaido plant in FY27 for 1.4 nm chips by 2029, $15B+ project backed by Japanese government, loans, and private investment, according to Nikkei
- Tesla’s China VP says supplier selection is based on uniform standards, not country of origin, according to The WSJ
- The Trump administration is negotiating a deal for Taiwanese firms, including TSMC, to invest in US chip manufacturing, train American workers, and potentially gain tariff reductions, according to Reuters
Consumer/Other
- China’s smartphone sales rose 8% Y/Y in October, led by Apple’s 37% growth from strong iPhone 17 demand, while OPPO and Xiaomi also contributed, says Counterpoint
- HP to cut 4–6k jobs by FY28 for AI adoption; 4Q revenue $14.64B beat, FY26 guidance below estimates
- South Korea submitted a bill to implement its $350B US investment pledge, cutting auto tariffs from 25% to 15% retroactive to Nov. 1
- A global pipeline of rare earth projects could reduce US dependence on Chinese supplies, with the US projected to meet about 95% of its own demand by 2030, according to Reuters
Source:
Edgewater Research
