Electronics Supply Chain Weekly Digest 1-31-25.
DATAPOINTS OF THE WEEK:
China’s manufacturing activity unexpectedly contracted in January, an official factory survey showed on Monday, its weakest since August.
The official purchasing managers’ index (PMI) contracted to 49.1 in January from 50.1 in December. The non-manufacturing PMI, which includes services and construction, slowed to 50.2 from 52.2 in December.
Policymakers have promised to roll out further stimulus over 2025, but analysts worry it will remain focused on industrial upgrades and infrastructure, rather than households, which could worsen overcapacity in factories, weaken consumption and increase deflationary pressures.
Beijing has pledged to prioritize revitalizing domestic demand, but has revealed little apart from a recently expanded trade-in program that subsidizes purchases of cars, appliances, and other goods.
Headlines:
Auto/Transportation
- BMW expects full-year earnings margin in lower half of 6-7% target
- Caterpillar warns of sales drop in 2025 on weak equipment demand
- Continental’s ContiTech division to close four plants in Germany
- EU kicks off auto support plan as carmakers blast fines
- Tesla, BMW sue European government for China tariffs
- EV car sales to top 20 million in 2025, Rho Motion says
- GM posts strong 4Q results, shares still skid on tariff worries
- Honda developing sub-$30k EV for North America
- Honda, Nissan to announce direction of possible integration by mid-Feb, Nissan says
- Mercedes-Benz expects higher margin on car division in 4Q
- January US auto sales expected to gain more than 5% Y/Y despite harsh winter weather, says Cox Automotive
- Tesla commits to cheaper cars in 1H25 and returns to growth in vehicle business in 2025
- Tesla’s facelifted Model Y exceeds 70k orders in China in 5 days after launch
- Xiaomi SU7 total deliveries have exceeded 150k units, says CEO
Datacenter
- DeepSeek released AI model that rivals OpenAI, sent tech stocks tumbling on Monday
- Zuckerberg says Meta won’t slow down AI spend despite DeepSeek’s breakthrough
- Microsoft shares slide as cloud forecast, AI spending disappoint
- DOJ sues to stop HPE’s $14B Juniper buyout
Industrial
- Boeing reported a $11.8B loss for 2024, amid challenges in its major units and a crippling strike
- China’s industrial profits fall 3.3% in 2024, third year in the red
Semiconductors
- ASML reports €28.3B total net sales and €7.6B net income in 2024, driven by AI demand
- Intel misses 1Q revenue forecast amid product competitiveness challenges
- Mobileye forecasts downbeat annual revenue as China weakness persists
- Trump officials discussing tightening curbs on Nvidia’s China sales
- North American PCB industry sales up 59.6% in December says IPC
- Samsung warns of slow AI chip sales in 1Q, hurt by US restrictions on China
- STMicro warns of decline in 1Q25 sales, plans production cuts and lower CapEx
- STMicroelectronics may cut 2,000-3,000 jobs in France, Italy says Bloomberg
- Sumitomo Electric cancels $222M SiC wafer fab project due to weak EV demand
Consumer/Other
- Apple CY1Q forecast lifts hopes for iPhone rebound
- Huawei reclaims China’s smartphone market lead in 4Q24, Apple sales drop 18.2%
- China’s Vice Premier calls for global cooperation, reaffirms commitment to open markets at WEF
- North American EMS industry down 7.8% in December
- Nokia exceeds 4Q expectations with 10% sales growth, forecasts strong 2025 performance
- Trump plans across-the-board tariffs above 2.5% to boost domestic manufacturing
