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Edgewater Research: Electronic Component Weekly Digest - May 13

Dennis Reed
|  Created: May 13, 2024  |  Updated: July 1, 2024

Welcome to this week’s edition of Edgewater Research's digest, offering a blend of the latest news summaries, survey results, and insightful reports from the electronics supply chain sector.

Edgewater Research

Data Point of the Week:

Passenger Car Retail Sales in China

In April, passenger car retail sales in China reached 1.53 million units, marking a 7% year-over-year decrease and a 9% drop from the previous month, falling short of the preliminary estimates of 1.59 million units. This downturn, notable as the first year-over-year decline since July 2023, positions April's sales as the second lowest in the past four years for this month. New Energy Vehicle (NEV) sales also fell below expectations, totaling 674,000 units against forecasts of up to 720,000. However, NEVs did see a 28% year-over-year increase, with battery electric vehicles (BEVs) up 12% and plug-in hybrids (PHEVs) up 64%. NEV market penetration rose to 44% in April, up from 42% in March. While total exports grew 2% month-over-month, NEV exports declined by 4% to 115,000 units. Amidst this slowdown, the auto market has experienced significant price cuts and a cautious consumer sentiment, exacerbating the inventory build-up at dealerships.

Auto Industry Updates:

  • France: Welcomes BYD's new factory.
  • Continental: Reports a shift to a profit loss in Q1 due to delays and production slowdowns.
  • French Carmakers: Aim to quadruple EV sales by 2027.
  • Ford: Reevaluates its 2030 all-electric goal in Europe.
  • EU: Warned by German car executives about potential repercussions of tariffs on Chinese EVs.
  • Magna: Foresees a $400 million loss in sales from production cuts at Fisker.
  • Nio: Set to introduce its first mass-market car in May.
  • Tesla: Experiences a significant staff reduction in its fourth round of layoffs; reports a 20% decline in China April shipments.
  • VW: Proposes €900 million in buyouts to reduce German staff.
  • US Regulations: Considers banning Chinese connected vehicles or imposing restrictions.

Datacenter Developments:

  • Amazon: Commits nearly $9 billion to expanding its cloud infrastructure in Singapore.

Semiconductor Sector:

  • Apple: Develops its AI chip for data centers.
  • GlobalFoundries: Projects Q2 revenue and profits above expectations.
  • Intel and Qualcomm: Face revocation of licenses to sell to Huawei by the US government.
  • US Semiconductor Industry: Expected to triple chipmaking capacity by 2032.

Other News:

  • Apple: Sees a 12% increase in iPhone shipments in China after recent price cuts.
  • Maersk: Predicts a 20% reduction in Asia-Europe capacity due to Red Sea disruptions.
  • Foxconn: Projects Q2 revenue growth and records high sales in April.

Stay updated with the evolving landscape of the electronics supply chain, as we continue to bring you the most relevant and impactful news.

About Author

About Author

Dennis Reed is a Senior Research Analyst in Technology. Dennis started in the industry in 2005 at FTN Midwest Research on the technology & semiconductor team. In 2006, he was a founding member of Cleveland Research Company and continued to develop and extensive network of technology industry professionals in the semiconductor, distribution, memory and HDD industries throughout the world. Dennis worked at KeyBanc Capital markets in New York, on teams covering Consumer Staples and Paper & Packing companies. Dennis also brings wide level of experience working in various roles with Travelers Insurance, including Market Research and various product roles supporting business unit growth in targeted end markets. Dennis is a 2002 graduate of Ohio University with a major in Sports Management.

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