Electronics Supply Chain Weekly Digest 12-5-25.
DATAPOINT OF THE WEEK
S&P reported that the November Eurozone mfg PMI decrease to 49.6 from 50.0 in October, as new orders declined in the month after stabilizing in October.
Sales overseas continues to struggle with new export orders declining for the 5th consecutive month. Despite this, November marked the ninth straight month of manufacturing output rising.
Germany’s mfg PMI declined more sharply in November to 48.2, down from 49.6 in October with a major driver being new orders recording its steepest decline since January after October marked the 6th month out of the last 8 to see growth. While production continued to grow for the 9th consecutive month, the pace declined to only modest levels of growth – the weakest since July.
US PMI reached 52.2 in November, down from 52.5 in October, though it marks the 4th straight month of the PMI being in expansion. Despite this, indicators show cause for concern as new order growth sharply declined, signaling demand may weaken. The main indicator driving expansion continues to be production, marking it’s biggest rise since August. Contrastingly, ISM reported November US mfg PMI of 48.2, a decline from 48.7 in October as ISM reported that new orders declined for the third straight month.
Headlines:
Auto/Transportation
- BMW announces new targets of 60M-ton CO2 reduction by 2035 through increasing electrification, advancing net-zero 2050 goal
- BYD eyes 35 South African dealerships by 1Q26, targets 60–70 by year-end with EV expansion and 300 fast chargers, says Reuters
- Changan Europe plans Avatr and Nevo EV launches, European factory, and possible hybrid/light commercial models
- EU reviews VW proposal to replace China EV tariffs with import quota and minimum price mechanism
- Ford and Hyundai US sales dip in November as EV demand falls post federal tax credit
- France urges EU to require locally assembled EVs with 75% European parts to protect jobs amid CO₂ rules debate
- Stellantis sees early turnaround at Ram and Jeep with V8, hybrid, and non-plug-in models; CEO Filosa shifts strategy and plans $13B US investment
- Tesla China-made EV sales up 9.9% Y/Y in November, Model 3 and Y shipments surge 41% M/M on new long-range variants
- Tesla announced it has launched a lower-priced Model 3 in Europe, two months after its US debut, aiming to boost sales
- Trump administration set to roll back Biden-era fuel efficiency rules, easing compliance costs but risking emissions and fuel savings
- VW announced it is transforming its small Dresden assembly plant into a €50M innovation hub in partnership with Saxony and TU Dresden, focusing on AI, robotics, and chip design
Datacenter
- Nebius is leveraging $17B and $3B deals with Microsoft and Meta to expand its client base to traditional firms and emerging AI companies
IP&E
- A AI datacenters and grid expansions push 2025 refined-copper shortfall to 304k tons, only 70% of 2035 demand projected to be met, says Tom’s Hardware
- BizLink to acquire Shenzhen’s XFS Communications in 1Q26 to boost optical interconnect, silicon photonics, and HPC/AI capabilities
- Marvell to acquire Celestial AI for $3.25B to advance optical interconnects for next-gen AI data centers, targeting $1B annualized run-rate by FY29
Semiconductors
- Amazon accelerates rollout of 3nm Trainium3 AI chips, targeting 1M units by year-end as lower-cost alternative to Nvidia GPUs
- AMD cleared to ship MI308 chips to China, agrees to 15% US export fee under Trump-era deal
- Vultr to build $1B, 50MW AI cluster in Ohio using AMD MI355X GPUs, operational by early 2026
- Huizhou Huishikang to invest $159M in world’s largest 12-inch optical-grade SiC wafer plant, targeting 200k units annually, says TrendForce
- Glass set to triple in semiconductor demand by 2030, with 9.8% CAGR as 300mm, 3D, and bonding-intensive architectures drive growth, says Electronics Weekly
- Global semi equipment 3Q25 billings hit $33.66B, up 11% Y/Y on AI, logic, DRAM, and China-driven demand, says SEMI
- Global semi market 3Q25 hits $208B on AI surge, Nvidia leads with $57B; mixed 4Q25 guidance, according to WSTS data
- Intel to retain NEX unit, citing strengthened cash and strategic integration across AI, data center, and edge products
- Intel to invest $208M more in Malaysian assembly and testing, building on $7B advanced packaging plant commitment
- Kioxia/SanDisk exploring joint US NAND fab to boost supply-chain resilience, government support possible, says SemiMedia
- MediaTek to supply Google V7e TPUs, targeting $1B revenue in 2H26 amid growing AI demand, according to DigiTimes
- Microchip lifts 3Q sales guidance to top of range on strong bookings, backlog extends into March 2026
- Micron to exit consumer memory business, including Crucial, to focus on AI data center chips
- Micron to invest $9.6B in Hiroshima HBM fab, supported by up to $3.2B in METI subsidies
- Mitsubishi will triple its optical semiconductor production capacity by FY28, redirecting investment from slower EV power devices to serve AI demand
- Dutch minister cancels China visit regarding Nexperia; Zhang Xuezheng (Wingtech Chairman) receives China’s Hua Award amid ongoing