Wk 5 Electronics Supply Chain Digest

Electronics Supply Chain Weekly Digest 1-23-26.

DATAPOINT OF THE WEEK: New car registrations in Europe increased up 2.06% Y/Y in 2025 to 13.2M units, though remained 15% below the average pre-COVID level from 2016 to 2019, according to ACEA data. December registrations increased 7.5% Y/Y and 8.7% M/M. December BEV sales surged 30.5% Y/Y and 21.7% M/M, making Dec the 11th month in the last 12 to see Y/Y BEV growth. BEVs accounted for 26.3% of the market in December, up from 7.5 points from a year prior. PHEV sales also saw significant growth in Dec, rising 36.1% Y/Y and 9.9% M/M. This marks the 10th straight month of strong double-digit Y/Y growth. HEVs increased 5.2% Y/Y and 5.7% M/M in December, accounting for 32.5% of the market. ICE registrations declined 16.8% Y/Y in December, marking its 17th straight month of Y/Y declines.

Headlines:

Auto/Transportation

• Aumovio to cut up to 4,000 jobs as it targets lower R&D intensity amid challenging market
• BYD targets 1.3M overseas sales in 2026 as it explores assembly in India to bypass import duties after ~5.5K units sold in 2025, per Bloomberg
• China EV margins pressured as UBS estimates $500–$1,000 per vehicle cost inflation from lithium, metals, and memory chips amid fading stimulus, says CNEV Post
• EU eases 2035 ICE stance, potentially boosting REEV adoption as Chinese competition rises and BMW/VW target 2026 launches, according to Reuters and TrendForce
• GM boosts 2026 profit guide to $13B–$15B on pickup/SUV strength despite $3B–$4B tariff headwind and $6B EV charge driving 4Q net loss
• Honda resumes China output after Nexperia disruption eases, signaling near-term relief for auto semiconductor supply constraints, says DigiTimes
• Hyundai warns tariffs remain a ~$2.9B annual profit drag as 4Q operating profit drops 40%
• Stellantis leans into volume recovery with broad 2026 price cuts in France after 2025 sales fell 6.8%, signaling profitability tradeoff, per Reuters
• Tesla pivots harder toward AI as profit plunges 64% and capex tops $20B in 2026, with Cybercab launch plans, $2B xAI stake, and “TerraFab” fab concept
• Volvo raises 2026 heavy-truck outlook to 265K NA and 305K Europe as demand stabilizes despite 4Q profit down 9% Y/Y
• VW aims to export lower-cost China-built vehicles to ASEAN, Middle East, and South America to protect pricing and manage China competition, says Bloomberg

Datacenter

• Celestica rides AI server surge with 4Q revenue +44% Y/Y to $3.65B and targets $17B in 2026 sales as it expands US/SEA manufacturing
• Nvidia invests another $2B into CoreWeave to accelerate “AI factory” buildout as GPU-backed capacity becomes a strategic bottleneck, says Bloomberg
• Malaysia set to more than double data center capacity to ~2,100MW by end-2026 as Johor becomes a key AI compute hub, per Nikkei Asia
• Meta guides 2026 capex to $115B–$135B, up from ~$72B in 2025
• OpenAI pursues up to $100B funding raise at ~$730B–$830B valuation from Nvidia, Microsoft, Amazon, per Bloomberg and The Information

Industrial

• Honeywell 4Q revenue rises 6.4% Y/Y as aerospace and aftermarket strength offset delivery delays
• Plexus guides March-quarter revenue ahead as Industrial, Healthcare, and Aerospace demand strengthens

IP&E

• Lightmatter partners with GUC, Synopsys, and Cadence to accelerate CPO roadmaps and break connectivity bottlenecks for next-gen AI systems
• Meta signs up to $6B multi-year Corning fiber agreement to support AI data center expansion and long-haul connectivity buildout
• Yageo raises resistor pricing 15%–20% effective Feb 1 as AI demand and metal input inflation drive broader passive component hikes, according to DigiTimes

Semiconductors

• Alibaba deploys in-house Zhenwu 810E AI processor across clusters to vertically integrate amid rising China self-sufficiency push, says DigiTimes
• AI server ASIC shipments expected to triple by 2027, according to TrendForce
• ASML posts record 2025 revenue as AI-driven demand lifts 4Q bookings and supports strong 2026 outlook
• Chinese display giants Visionox and BOE enter semiconductor glass substrate race, building pilot lines to challenge US/Japan/Korea incumbents, per DigiTimes
• Nvidia and Apple reportedly eye selective Intel production by 2028, using advanced packaging to diversify beyond TSMC under US supply-chain pressure, according to DigiTimes
• MediaTek targets $10B ASIC revenue by 2027 as Google partnership scales cloud AI silicon and potential TPU volume reaches ~2.5M units, says DigiTimes
• Samsung and SK Hynix warn AI-driven demand will keep memory supply tight through 2027, constrained by cleanroom space and packaging capacity, according to Nikkei Asia
• Microsoft launches Maia 200 on TSMC 3nm to scale inference capacity, with ~330K units forecasted for 2026
• Micron commits $24B to expand NAND capacity in Singapore with wafer output beginning in 2H28, per DigiTimes
• Samsung posts record 4Q results as AI-driven memory demand lifts semiconductors and tight supply supports pricing
• SK hynix posts record 2025 results as AI-driven HBM demand drives revenue surge and margin expansion
• TI 4Q revenue in line, utilization stronger than expected; 1Q guide points to above-seasonality growth driven by DC and Industrial demand
• Tesla targets 9-month AI chip iteration cycle with AI5 performance claims and long-term fab ambitions
• TSMC to exceed 140K CoWoS units/month by end-2026 as Nvidia consumes >50% of capacity, with advanced packaging remaining constrained for years, says DigiTimes
• VIS licenses TSMC GaN processes to expand power device roadmap across low-to-ultra-high voltage applications in datacenter and automotive power, according to DigiTimes
• China greenlights >400K Nvidia H200 purchases for Alibaba, Tencent, and ByteDance under conditions, per Bloomberg

Consumer/Other

• China smartphone shipments slip 0.8% in 4Q to 75.8M units as memory costs rise and subsidies fade, says IDC
• TrendForce cuts FY26 notebook outlook as 1Q shipments expected to plunge 14.8% Q/Q on CPU shortages and broad component inflation
• US and Mexico agree to begin USMCA reform talks ahead of July 1 review, with rules-of-origin tightening emerging as key focus, per Reuters
• US shifts away from price floors for critical minerals, signaling a new approach to domestic production support