Electronics Supply Chain Weekly Digest 12-6-24.
DATAPOINT OF THE WEEK: ISM reported US Nov mfg PMI of 48.4 vs. 46.5 in Oct reflecting a relative improvement with new orders returning to growth for the first time in seven months, while output increased M/M, though it remained in a contraction territory.
Similarly, S&P reported an improvement in the mfg with Nov PMI of 49.7 vs 48.5 in Oct signaling a marginal decline in activity with new orders and output declining at a low pace and business optimism rising to a two and a half year high on hopes of improving economic conditions under the incoming administration.
Conversely, manufacturing activity in Europe worsened in Nov with S&P mfg PMI dropping to 45.2 from 46.0 in Oct reflecting steep contraction in Germany, France and Italy, marked by sharp fall in new orders, employment and output. In China, government mfg PMI rose to a five-month high of 50.3 in Nov (vs. 50.1 in Oct) reflecting rising export orders, output and business optimism. Similarly, Caixin’s private survey reported improvement in China, with Nov PMI reading expanding to 51.5 from 50.3 in Oct.
Headlines:
Auto
- BYD asks suppliers to cut prices as China auto war intensifies
- BYD sells record 506,804 NEVs in Nov, exceeding 500,000 for 2nd consecutive month
- China Nov NEV wholesale at record 1.46 million, CPCA estimates show
- Tesla, BYD ramp up China incentives in end-of-year sales push
- China automakers pivot to hybrids for Europe to counter EV tariffs
- Denso and Fuji Electric partner on SiC
- Plunging EV demand drives down German car sales
- Europe’s embattled auto sector plans plant closures and layoffs
- EVs, plug-in hybrids’ reliability concerns ease but still lag gas-powered peers, survey shows
- GM selling its stake in MIchigan battery factory to LG
- GM to take more than $5 billion in charges on China operations
- Global PHEV sales surge by 55.3% in 3Q24, BYD market share exceeds 40%, says TrendForce
- China bans export of critical minerals to US as trade tensions escalate
- Stellantis CEO Carlos Tavares abruptly quits
- Tesla’s China-made EV sales drop 4.3% in Nov
- Tesla says no timetable for selling Cybertruck in China
- VW workers step up strikes to fight German plant closures
Datacenter
- Meta to invest $10 billion for Louisiana datacenter
- HPE beats quarterly results estimates on strong AI server demand
Industrial
- Airbus deliveries topped 80 jets in November
- Airbus cuts 2,000 Defence and Space jobs, taming earlier plans
- German industrial output unexpectedly falls in October
- US sets tariffs for solar panels from Southeast Asian nations
- US factory orders rise marginally in October
Semiconductors
- AWS unveils 3nm Trainium3 for AI workloads
- ASML not changing guidance after new US crackdown on China chip exports
- Broadcom unveils new tech to speed up custom chips amid rising GenAI demand
- US chips are ‘no longer safe,’ Chinese industry bodies say in latest trade salvo
- Advanced processes and Chinese policies drive 3Q24 global top 10 foundry revenue to record highs, says TrendForce
- Germany plans €2bn in subsidies to boost chip production
- GlobalFoundries’ gains $9.5m more in US funding for Vermont 200mm GaN-on-Si chip production
- Intel CEO Pat Gelsinger forced out after board lost confidence in reversal plan
- Intel names two chip industry veterans to its board amid CEO search
- Chipmaker Marvell’s market value jumps to record high on AI-powered Q4 forecast
- Mersen delays targets by two years on weak materials demand for EVs
- Microchip pauses CHIPS Act application amid inventory woes
- Nexperia to comply with U.S. restrictions on Chinese parent Wingtech
- NXP, TSMC Affiliate Plan to Expand $7.8 Billion Singapore Plant
- China Semiconductor Equipment Rise
- Ampere and STMicroelectronics collaborate on powerbox with long term supply for SiC
- WSTS revises 2024 forecast upward, citing strong AI-driven growth
- TSMC and Nvidia in talks to make AI chips in Arizona
- Latest US clampdown on China’s chips hits semiconductor toolmakers
Consumer
- $1B Apple investment into Indonesia on the horizon
- Demand ‘excessive’ for Huawei’s Mate 70 smartphones, exec tells state media
- Foxconn reports November revenue
- Sales season and flagship launches drive 3Q24 smartphone production up 7%, says TrendForce
