Edgewater Research: Electronic Component Weekly Digest - Mar 25

DATAPOINT OF THE WEEK:

S&P reported March Flash Mfg PMI in the US of 52.5 vs 52.2 in February, reflecting accelerating expansion in output and new orders, with the rate of growth noted as the highest since May 2022. S&P also noted business confidence jumped to a two year high amid signs of pick up in the US economy. S&P reported Eurozone March Flash Mfg PMI of 45.7 vs 46.5 in February. The M/M decline appears driven by a decline in suppliers delivery times and easing of inflation pressures while the pace of output and new order declines showed signs of improvement M/M. Activity was noted as softer in France and Germany. S&P noted business optimism in the Eurozone slipped M/M but remained higher than the end of 2023.

 Auto

• Benley pushing out plans to sell all EVs by 2030
• BMW expects stable margins and slight increase in CY24 sales
• Chia Auto sales up 4% Y/Y in March, NEV up 37% Y/Y says preliminary data
• European auto sales up 10% Y/Y in Feb; BEV sales down M/M, PHEV strong
• BYD, GAC and Xpeng planning to adop Nvidia’s Drive Thor technology for upcoming models
• Li Auto cuts its 1Q shipments outlook by 24% citing weaker than expected orders
• Ford resumes output at strike-hit German factory
• China's Leapmotor to start production of small EV in Stellanti’s Polish Plant
• Samsung reportedly considering buying Continental’s automotive electronics business.
• US administration slashes target for EV adoption rate by 2032
• New auto sales in the US expected to grow 12% Y/Y in March driven by broader availability and increased promotions
• Tesla has cut output in China in March according to Bloomberg

Industrial

• Rockwell warned customer orders are improving but the pace is lagging expectations
• Siemens sees slower than expected order activity in China and Europe for factory automation

Datacenter

• Accenture cuts its FY24 revenue forecast citing additional cuts in IT spending by consumer amid increased economic uncertainty

Semiconductors

• Intel to receive $20B in government incentives as part of the CHIPS Act
• At China SEMICON, firms ramp up call to buy domestic
• Nvidia announced its next generation of AI GPUs called Blackwell
• NXP and Nvidia partner to accelerate AI deployment to the Edge
• Micron reports stronger results and outlook; sells out HBM capacity
• SK Hynix has begun volume production of next gen HBM memory
• 300mm fab equipment spending forecast to reach $137B in 2027, driven by high-performance computing and automotive applications
• STMicroelectronics breaks 20 nm barrier for next-gen microcontrollers
• US planning to give Samsung $6B in incentives under the CHIPS Act
• TSMC considering adding CoWaS capacity in Japan