Electronics Supply Chain Weekly Digest 2-20-26.
DATAPOINTS OF THE WEEK:
S&P reported February Flash Eurozone manufacturing PMI rose to 50.8 from 49.5 in January, reaching a near four-year high, as production and new orders grew at the fastest rates since August 2025 and winter 2022, respectively.
Germany’s flash manufacturing PMI also climbed notably to 50.7 from 49.1, surpassing 50.0 for the first time in over three and a half years, with new orders expanding at the fastest pace in nearly four years. New export orders grew for the first time in seven months, though only modestly. In contrast, the US Flash PMI declined to 51.2 from 52.4 in January, marking the weakest growth in seven months, as production rose at its slowest rate since July and new orders fell slightly for the second time in three months.
The US Supreme Court ruled that Trump exceeded his authority by using the International Emergency Economic Powers Act to impose sweeping tariffs, with the majority finding he lacked clear congressional authorization for the action. The decision effects over $175B in collected tariffs that may need refunding, while Trump’s administration says it will explore alternative legal justifications to maintain tariffs under other statutory provisions.
Headlines:
Auto/Transportation
- BYD maintains China NEV market lead with 15.8% share in January while Tesla drops out of top 10, per CNEVPost
- US EV sales plunge 29.9% Y/Y to 66.3K units in January as inventory surges to 168-day supply, according to Cox
- Infineon and BMW define partnership details in the SDV iX3 architecture in iX3, according to Electronics Weekly
- Polestar plans refreshed versions of top-selling Polestar 2 and 4 models to boost European sales above 100K annually
- Renault operating profit drops 15% to $4.24B as price pressure forces 2026 margin forecast down to 5.5%
- Stellantis quietly reintroduces diesel versions of 7 car models across Europe as company retreats from disappointing EV sales, according to Reuters
- Tesla unveils $60K dual-motor Cybertruck variant and cuts Cyberbeast price to $100K from $115K, says Reuters
- Uber invests over $100M in autonomous vehicle charging hubs across US cities to support robotaxi expansion, Reuters reported
- Trump Administration rescinds rule incentivizing EV production so automakers meet fuel economy requirements
- New-vehicle affordability hits best level since March 2025 as average prices drop 2.2% to $49.2K and loan rates decline to 9.52%, says Cox
- US International Trade Commission launches investigation into USMCA automotive rules of origin requiring 75% NA content
- Volkswagen plans to cut costs by 20% across all brands by end of 2028 amid China pressures and US tariffs
- New York Governor Hochul withdraws robotaxi proposal, blocking Waymo’s planned statewide expansion outside NYC
- Zeekr enters Italian EV market with four-model lineup priced $44.7K-$85.8K as Chinese brand expands European presence
Datacenter
- AMD partners with Tata to deploy 200 MW AI data center capacity in India, challenging Nvidia dominance
- Adani Group plans $100B investment in AI-ready data centers by 2035, targeting India’s emerging artificial intelligence hub
- Microsoft commits $50B by 2030 to expand AI infrastructure and capabilities across Global South countries, per DigiTimes
- OpenAI partners with Tata Group to build 1GW AI data center capacity in India starting with 100MW phase, according to DigiTimes
Industrial
- Solar panel producers accelerate shift from silver to copper after silver prices surge 130%, increasing manufacturing costs 7-15%, per Reuters
IP&E
- Cisco and Qunnect successfully operate quantum network over 17.6 kilometers of real-world fiber optic cables between Brooklyn and Manhattan
- Murata considers MLCC price increases as AI server orders run at twice production capacity
- Optical Transport equipment market grew 10% in 2025 driven by 40% surge in datacenter interconnect demand, according to Dell’Oro Group
- Sensata Beats 4Q Revenue; Guides In-Line 1Q with Better-Than-Seasonal Margins, Sees Low-Single-Digit Growth in 2026 Amid Mixed End-Markets
Semiconductors
- Analog Devices forecasts 2Q revenue of $3.5B, beating estimates as AI data center demand drives semiconductor sales
- Alpha and Omega Semiconductor launches 600V super junction MOSFET with 37 milliohm resistance at $5.58 unit price, per Electronics Weekly
- GlobalFoundries and Renesas expand partnership in multi-billion-dollar manufacturing deal covering US, Germany, Singapore facilities, as reported by DigiTimes
- Meta locks in millions of Nvidia Blackwell and next-gen Rubin GPUs plus Grace CPUs in multiyear AI infrastructure pact
- Micron to Invest $50B in Boise Expansion, Adding Two DRAM Fabs as Part of $200B U.S. Buildout, per WSJ
- Nexperia receives $60M loan from Dutch state finance institution to boost global chip production capacity, as reported by Reuters
- Supermicro evaluates local manufacturing in India to expand AI server production footprint
- Pentagon removes Chinese memory makers YMTC and CXMT from blacklist, potentially easing US OEM procurement access
Consumer/Other
- Meta reboots smartwatch plan targeting 2026 debut with health tracking and built-in AI assistant, says The Information