Electronics Supply Chain Weekly Digest 12-19-25.
DATAPOINT OF THE WEEK: S&P December Flash Eurozone mfg PMI decreased to 49.2 from 49.6 in November, as the pace of new order growth slowed from November. Overseas demand remained soft, with new export orders continuing to decline, with December marking the steepest drop since March.
Germany’s December Flash mfg PMI dropped to 47.7 from 48.2 in November with production declining for the first time in ten months following a significant slowdown in orders in November.
The trend of a decline in new orders has continued into December and does not bode well for the start of the year. US December Flash PMI moderated to 51.8 from 52.2 in November. Although this marks the 5th straight month of being in expansion territory, new orders fell for the first time since December 2024.
Headlines:
Auto/Transportation
- European commission proposing policy that eases 2035 ICE ban, extending runway for hybrids
- Ford takes $19.5B EV write-down as weakening demand drives pivot back to hybrids and ICE profitability
- Honda to halt some Japan and China production as chip shortages from Nexperia situation persist
- Toyota to sell US-made Camry, Highlander, and Tundra in Japan next year, backs $13.9B NC battery plant and $10B US manufacturing investment
- US EV sales fall 41% Y/Y in November to 70,255 units, Tesla leads while inventory surges and prices ease, according to Cox
- VW reaffirmed its aggressive cost-cutting as a top priority to keep the company competitive amid industry-wide pressure
- Waymo is in discussions to raise more than $10B at a valuation of at least $100B, says Reuters
Datacenter
- Amazon in talks to invest $10B in OpenAI, potentially valuing the AI firm over $500B and expanding use of Trainium chips
- Pure Datacenters secures Europe’s largest 2025 hyperscale lease for 78MW Amsterdam campus, €1B development to start data hall construction in January 2026
- US AI datacenter boom strains power grids, drives household electricity costs up 11%, sparks community protests over environmental and equity impacts, says DigiTimes
- Michigan approves power for Oracle and OpenAI 1.4GW Saline datacenter despite local opposition
Industrial
- Joby Aviation announces plans to double US eVTOL production to four aircraft per month by 2027 with expanded hiring and 24/7 operationse
IP&E
- Copper nears $12k/ton on supply constraints and strong demand, up 35% in 2025 with Goldman Sachs $15k/ton 2035 forecast
Semiconductors
- AMD CEO Lisa Su commits to greater investment and partnerships in China to boost US–China semiconductor and AI cooperation, says DigiTimes
- Apple and Broadcom developing first in-house AI server chip “Baltra” for 2027, using TSMC 3 nm N3E process, according to Economic Daily News
- China assembles prototype EUV lithography machine aiming for chip production by 2028, according to Reuters
- EU approves €623M German aid for GlobalFoundries and X-FAB fabs, boosting 300 mm wafer capacity and open MEMS foundry for European semiconductor production
- Global Auto Semi market is projected to grow from $67.7B in 2024 to nearly $96.9B by 2029, a CAGR of 7.4%, driven by accelerating vehicle electrification and intelligence, according to TrendForce
- GF and onsemi partner to develop 650V GaN power devices on 200mm eMode GaN, with sampling in 1H26 and rapid volume ramp
- Global semiconductor equipment sales are projected to hit a record $133B in 2025, up 13.7% Y/Y, driven by AI-related investments in logic, memory, and advanced packaging, says SEMI
- Infineon and Lenovo expand in-vehicle compute collaboration using AURIX microcontrollers to support L2–L4 autonomy and boost safety and efficiency
- Jabil reported strong F1Q results with revenue at $8.31B, driven by strength across end markets, particularly cloud, datacenter, networking, and capital equipment
- Micron posts $13.6B F1Q revenue with 56.8% margin, driven by strong DRAM and NAND growth, and guides $18.7B F2Q amid tight supply and robust demand
- MuRata to mass-produce AI server power modules in 2026, targeting $332M FY26-27 revenue, says Nikkei
- NHanced Semiconductors starts scaled production with hybrid bonding, enabling 2.5D/3D chiplet integration and up to 10× faster throughput
- Rapidus has developed a prototype glass interposer for AI chips, claiming significant cost, scale, and power-efficiency advantages over conventional silicon interposers used by TSMC, according to DigiTimes
- Texas Instruments announced it has officially started production at its new 300mm wafer fab, SM1, in Sherman, Texas
- TSMC plans to advance US 3nm chip production, moving equipment into its second Arizona plant mid-2026 for a 2027 ramp, ahead of the original 2028 schedule
Consumer/Other
- EU will expand its carbon border levy (CBAM) to more products, tighten emissions rules, and use 25% of revenues to support low-carbon investments
- Global Smartphone Shipments are projected to fall 2.1% in 2026 as rising chip costs, especially for legacy memory, squeeze demand in the sub-$200 segment, says Counterpoint
- Nine US lawmakers urge adding DeepSeek, Xiaomi, BOE, and nine other Chinese firms to the Section 1260H list flagging military-linked companies
Source:
Edgewater Research
