Electronics Supply Chain Weekly Digest 12-22-23.
DATAPOINT OF THE WEEK:
New light vehicle sales in Europe totaled 1.075M in November, according to ACEA data. Sales remain on an uptrend, but the pace of growth Y/Y slowed to 6%, the lowest since Aug-22, and compared to avg. growth of 16% from Jan through October. The growth indicates demand is slowing down in Europe despite sales being 10% below average pre-COVID level. Sales growth was weak in Germany (-6% Y/Y) but strong in France (+14%), Italy (+16) and the UK (+10%). BEV sales in Europe increased sequentially by 15%, reversing the declines from the prior two months; on Y/Y BEV growth, however, decelerated to 4.9% from the average growth YTD of +49%; BEV penetration upticked to 17% from 15.2% in the prior month but remained below the peak of 21.7% reached in Aug. PHEV sales declined 14% Y/Y in November, marking the first decline since April. HEV sales remained strong, increasing 27% Y/Y. Internal combustion engine sales were steady Y/Y.
Headlines:
Auto
- Bosch projects more difficult 2024; announces job cuts to adapt to changing demand
- BYD to build a new EV factory in Hungary
- China’s Geely warns Red Sea attacks to delay Europe-bound EV shipments
- China says tax breaks to stay for over 90% of new energy vehicles in 2024
- China NEV retail sales in December projected to increase 12% M/M and 47% Y/Y says CPCA
- United States administration weighs hike in tariffs on Chinese EVs
- EU risks losing ground in EVs without strong industry strategy says ACEA
- Chinese-made EVs from Dacia, Tesla, MG to lose French incentives in 2024
- Carmakers planinig to foot German EV subsidy bill after state backs out
- Ford planning to halve planned EV F-150 production in 2024
- Some GM, Ford vehicles to lose US EV tax credits Jan. 1
- Mexican government greenlights Tesla’s gigafactory construction
- Tesla Model 3 to lose EV incentive Jan.1 amid stricter rules on battery sourcing
- U.S. new-vehicle prices down Y/Y for third straight month; Market shifts toward buyers as incentives climb says Cox
Semiconductors
- First CHIPS Act award of $35M goes to defense semiconductor supplier BAE
- Taiwan’s Powerchip chooses northern Japan for planned $5.4 bln fab
- Japan plans tax breaks for 10 years to boost EV, chip production says Nikkei Asia
- China and US bolster semiconductor independence as Taiwan’s foundry capacity share projected to decline to 41% by 2027, says TrendForce
- Global semi-equipment sales forecasted to reach $124B in 2025 says SEMI
- China import concerns spur US to launch semiconductor supply chain review
- ST Micron and Li Auto sign long-term supply agreement for SiC devices
- TSMC to hold opening ceremony in late Feb 2024 for Kumamoto fab in Japan; may unveil plans for second fab
- Toshiba to invest in power management chips, eying to catch up with tier 1 suppliers such as Infineon
- Qorvo to sell its back-end facilities in Beijing and Dezhou China to Luxshare
- Chips from TI and Other US makers continue to flow Into Russia despite ban reports Bloomberg
Other
- The World’s Copper supply suddenly looks scarce, says Bloomberg
