Wk 47 Electronics Supply Chain Digest

Wk 47 Electronics Supply Chain Digest

Electronics Supply Chain Weekly Digest 11-17-23

DATAPOINTs OF THE WEEK: S&P reported global electronics PMI of 46.9 in October vs 47.7 in Sep, marking the sharpest deterioration in the sector since mid-2020. S&P highlighted a sharper fall in new orders, output, employment, and stocks of purchase by the industry. All subsectors recorded a decline in output led by Computing. Electronic Mfg. shed staff for the 2nd month, added S&P.

S&P reported business outlook for the next 12 months in China slipped to a one-year low in October reflecting concerns over broader economic growth both at home and overseas. In Europe, S&P reported business confidence over the next 12 months remains challenging with first forecasting cuts to both employment and investments. Outlook is gloomiest in Germany where net balance of just +2% of companies surveyed expect to see a rise in business activity. In the US, S&P reports business confidence remains the highest among developed economies with a net of +25% of businesses forecasting growth in business activity.   

Headlines:

Auto

  • Amazon shoppers in 2024 will be able to buy a Hyundai directly from the retailer’s site
  • Continental announces job cuts in automotive division
  • US government rolls out US$3.5B in EV battery funding as manufacturers start layoffs citing slow demand
  • Fisker slashed its EV production target for 2023 citing challenges with production ramp-up
  • Lucid announce an $80,000 EV SUV with 440 miles range
  • According to US Census Bureau US auto retail sales of motor vehicles and parts declined 1% in October on adjusted basis
  • VW believes €20K EV is still doable in the second half of the decade
  • VW cuts shifts (again) at Zwickau plant on lackluster EV demand
  • Union workers at GM, F and STLA ratify UAW deal
  • Xpeg forecasts 2x increase in EV unit sales in 4Q23; reports wider than expected operating loss tied to production ramp

Aerospace

  • China weighs ending freeze on Boeing purchases with 737 Max deal in US
  • Boeing outperforms Airbus booking 3x more orders at Dubai Air Show

Datacenter/Telco

  • Alibaba scraps cloud business spin-off citing US chip export ban
  • Cisco’s outlook disappoints citing customers digesting product
  • Tencent has stockpiled Nvidia AI chips; turns  attention to domestic solutions following recent ban

IP&E

  • TrendForce sees global MLCC demand experiencing slow growth in 2024

Industrials

  • Destocking in key markets like Germany and China to drive slower growth in Siemens 2024 sales

Semiconductors

  • Applied Materials with better results and outlook but stock under pressure by investigation of selling equipment to SMIC
  • Consumer IC demand not expected to fully recover until 2H24 says DigiTimes
  • China’s mature IC capacity to account for 33% of global mix by 2027 says TrendForce citing 22 fabs under construction and 10 in the planning phase
  • Infineon reported strong results and outlook forecasting double-digit growth in Auto IC sales in 2024
  • Nvidia unveiled its latest flagship AI chip with more memory attached
  • Microsoft announced a duo of custom-designed AI chips
  • onsemi South Korea SiC fab suffered power outage last week
  • Samsung has received 4nm orders from AMD
  • Silergy says inventory correction of PMICs may take three more quarters to complete
  • IDC raised its 2023 and 2024 global semis sales forecast; projecting an ambitious 20% growth in 2024
  • Tower Semiconductor forecasted decline in 4Q revenue on continued inventory digestion

Consumer/EMS/Distribution

  • Apple’s effort to replace Qualcomm chip in iPhone falls further behind
  • Mixed datapoints on consumer spending in China during Single Day shopping
  • Strong Huawei sales boosted China October smartphone shipments  says Counterpoint

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