Electronics Supply Chain Weekly Digest 2-7-25.
DATAPOINTS OF THE WEEK: ISM reported US mfg. PMI of 50.9 in Jan, up from 49.2 in Dec, marking the first expansion in US manufacturing in over two years.
The increase exceeded expectations, signaling sector growth, though supply chain issues persist due to tariff concerns. S&P Global’s final euro zone mfg. PMI rose to 46.6 in Jan from 45.1 in Dec, showing slight stabilization but remaining in contraction territory.
Optimism increased as firms anticipated further rate cuts, with Germany and France seeing modest uptick in PMI, while UK PMI continued to decline. In China, Caixin’s mfg. PMI eased to 50.1 in Jan from 50.5 in Dec, reflecting slower growth amid weak domestic demand and global uncertainties, including US tariff threats.
Production rose slightly, but new orders, particularly exports, declined, and staffing levels fell. Stockpiling increased ahead of the Lunar New Year, driven by tariff concerns. Japan’s mfg. PMI dropped to 48.7 in Jan from 49.6 in Dec, marking the sharpest decline in 10 months, with output and new orders contracting. The outlook for Asia remains cautious amid trade uncertainties and soft demand.
Headlines:
Auto/Transportation
- BYD sells 300,538 NEVs in Jan, up 49% Y/Y
- China’s automakers accelerate chip push localization amid US curbs
- Ford lost $5B on EVs in 2024, expects to do the same this year
- Ford’s US Jan sales fell 6.3% owing to lower demand for its ICE vehicles
- France’s Jan car registrations fall 6.2%, led by Stellantis
- German auto sentiment hits new low on competitiveness fears
- Harley-Davidson forecasts weak 2025 as spending falters
- Honda boosting investment in three Ohio auto plants by $300M
- Nissan open to new partners including Foxconn after failed Honda merger
- Semi-Solid State battery adoption in EVs gradually rises, projected to exceed 1% market penetration by 2027, says TrendForce
- Tesla car sales in Germany in Jan dropped 59.5% Y/Y despite an overall 53.5% increase in EV sales in the country
- Tesla’s sales of China-made EVs fell 11.5% Y/Y in Jan
- Toyota raised its full-year operating profit forecast by 9%, driven by price increases, controlled incentives, and stabilized production
- VW to launch EV priced at €20k by 2027
- Xiaomi founder sets 10k sales target for luxury version of flagship EV
Datacenter
- Amazon 2025 capex to reach $100bn, AWS revenue hit $100bn in 2024
- Optical transceiver shipments projected to grow by 56.5% in 2025, says TrendForce
Industrial
- Airbus output and deliveries fell in January, according to Cirium Ascend
- Tesla’s megafactory in Shanghai, its first energy storage project outside the US, to officially start production on Feb 11
Semiconductors
- AMD surpasses revenue expectations but faces challenges in AI chip market
- SoftBank nears deal to acquire chip designer Ampere for approximately $6.5B
- Infineon raises sales forecast amid stronger USD and AI demand despite auto declining
- Japan tightens export controls on semiconductors and quantum tech, drawing criticism from China
- NXP forecasts 10% revenue decline in 1Q due to EV oversupply, job cuts planned
- Qualcomm forecasts strong 2Q revenue, AI demand boosts smartphone sales
- Rohm reports 99.5% profit decline in 3Q24, shifts strategy toward foundry partnerships
- TSMC likely to raise advanced node prices by over 15% in 2025 as Trump’s chip tariffs approach
Consumer/Other
- China to propose restoring 2020 ‘Phase 1’ trade deal with US, WSJ reports
- China retaliates to US tariffs with targeted duties on $20B of US imports
- PC shipments grew 1.8% in 4Q24, but 2025 outlook challenged by macroeconomic and tariff uncertainty, says the IDC
- Taiwan to help companies relocate to US following Trump tariffs
- Trump pauses tariffs on Mexico and Canada, but not China