Electronics Supply Chain Weekly Digest 2-21-25.
DATAPOINTS OF THE WEEK: S&P reported February US flash mfg PMI of 51.6 vs 51.2 in January, reflecting modest expansion in output despite slower new order growth, export declines, and inflationary pressures from rising costs and political uncertainty.
S&P also reported Eurozone Feb flash mfg PMI rose to 47.3 from 46.6 in Jan, indicating a slight easing in contraction, though new orders and employment continued to fall. Germany’s Feb flash mfg PMI increased to 46.1 from 45.0 in Jan, marking the highest level in two years as output showed signs of stabilizing.
Japan’s Feb flash mfg PMI improved to 48.9 from 48.7 in January, signaling a modest recovery despite ongoing challenges like labor shortages, inflation, and domestic economic malaise.
Headlines:
Auto/Transportation
- Audi and Mercedes planning to ramp up North American production to counter US tariff risks
- CPCA expects China Feb NEV retail at 600k, down 19% from Jan
- Continental to cut further 3k jobs in R&D in automotive branch
- EU denies making offer to US on lowering its auto tariffs
- Global NEV sales expected to grow 18% in 2025, with US market facing uncertainty, says TrendForce
- GM to shutter Shenyang plant as part of China market restructuring
- Honda ready to revive takeover talks if Nissan CEO Uchida leaves, FT reports
- Mercedes-Benz cuts costs, renews focus on combustion engine models in bid to revive earnings
- Nikola goes bankrupt, to sell assets in latest EV market turmoil
- Rivian expects drop in EV deliveries in 2025, sees modest gross profit
- Stellantis pauses retooling at Canada factory slated to build Jeep Compass
- Tesla begins mass production of revamped Model Y in Shanghai
- Japan seeks Tesla investment in Nissan, Foxconn approaches Honda, according to the FT
- US EV market sees mixed trends in January with record market share
- US new vehicle sales set to rise 8.1% Y/Y in February, according to J.D. Power and GlobalData
- Visteon projects flat automotive business in 2025 despite strong wins and new product launches
Datacenter
- Taiwan’s major server manufacturers are set to expand server production in Texas
Industrial
- Airbus sees 820 jet deliveries in 2025, an increase from 766 in 2024
- German manufacturing job losses deepen fears over industrial decline
- US mid-Atlantic factory momentum slows as price inputs surge
Semiconductors
- ADI signaled the start of a cyclical recovery with 1Q sales exceeding expectations
- Silver Lake in talks to buy majority stake in Intel’s Altera unit, according to Reuters
- BYD, other Chinese auto vendors face CMOS image sensor shortage
- Three major semiconductor projects in China reach key milestones, totaling $5.3B in investments
- DRAM manufacturers reportedly plan to cease DDR3, DDR4 production by late 2025
- GlobalWafers sees 6-inch SiC substrate prices stabilizing
- Global wafer fab capacity hits record 42M in 4Q24, with strong growth expected in 1Q25
- Infineon secures €1B EU funding for smart power fab in Germany to boost semiconductor industry
- Infineon ships first SiC power devices using 200mm wafers
- Microsoft unveils Majorana 1 quantum chip, advancing practical quantum computing
- SiC market struggles with price wars, weak EV demand
- Silicon Labs secures $23M grant from Texas CHIPS Act to boost semiconductor R&D
- SMIC expands Beijing fab as capital spending holds steady in 2025
- STMicro to launch data centre photonics chip developed with Amazon
- TSMC weighs first US advanced packaging fab as leadership shift looms
Consumer/Other
- Tech firms shift operations, adopting ‘Anything But China’ strategy amid US-China strains
- Apple reveals its version of budget AI: the $599 iPhone 16e
- Apple reveals first custom modem chip, shifting away from Qualcomm
- China to tighten grip on rare earth mining for non-state firms
- PC brands to hike US price as tariff pressures mount
- HP to acquire parts of Humane, AI pin startup from ex-Apple managers, for $116M
- Meta plans investments into AI-driven humanoid robots, memo shows
- Trump’s tariff shift fuels market uncertainty and forces cost cuts in the notebook industry
- Trump announces plans to impose 25% tariffs on automobiles, semiconductors, and pharmaceuticals
- Most US manufacturers forecast layoffs at Vietnam operations with Trump tariffs, AmCham survey shows
