Edgewater Research: Electronics Supply Chain Weekly Digest 10-13-23

| Created: October 13, 2023 | Updated: July 1, 2024

Important Disclosures in the Appendix

A weekly collection of news summaries, survey results and channel insights, and report summaries from Edgewater Research

Data Point of the Week: China's Electric Vehicle (NEV) Retail Sales Surge in September

In September, China's New Energy Vehicle (NEV) retail sales soared to 746,000 units, marking the second time it surpassed the 700,000 unit milestone. This information is sourced from the China Passenger Car Association (CPCA) data, indicating a robust 22% year-over-year (Y/Y) growth and a solid 4.2% month-over-month (M/M) increase. It's worth noting that this figure fell just short of the CPCA's estimate of 750,000 units made at the end of August. The breakdown of these sales reveals that Battery Electric Vehicles (BEVs) accounted for 500,000 retail units, with a 9% Y/Y increase and a 1.9% M/M gain. Plug-in Hybrid Electric Vehicles (PHEVs) also performed well, with 246,000 units sold, marking a remarkable 60% Y/Y increase and a 9.2% M/M boost.

Notably, total auto retail sales in September reached 2.018 million units, showcasing a notable 5% Y/Y growth and a similar M/M increase, making it the most significant year-over-year growth since May 2023. NEVs accounted for 37% of all light vehicle sales, maintaining consistency with the previous month's figures but showing a marked increase from the 32% reported a year ago. In the realm of exports, September recorded a significant 50% year-on-year growth, following a 31% gain in August, as indicated by the data. According to the China Association of Automobile Manufacturers (CAAM), production of passenger vehicles in September reached 2.496 million units, reflecting a solid 10% Y/Y increase and a respectable 4% M/M growth. Meanwhile, production of commercial vehicles totaled 350,000 units, posting an impressive 35% Y/Y growth and an 18% M/M surge, surpassing earlier expectations.

CAAM officials predict that China's auto sales will exceed the initial target of 3% growth for the year, and it's likely that the volume will surpass the market peak observed in 2017. In the third quarter of 2023, China's retail sales recorded a 2% Y/Y increase, while wholesale sales remained flat.

Headlines in the Auto Industry

General Motors (GM) Reaches Deal with Canadian Autoworkers After Union Initiates Strikes
The US Proposes a $270,000 Fine for GM Battery Plant Joint Venture Due to Health and Safety Violations
BMW and Mercedes-Benz Report a Decline in 3Q Sales in China Compared to Flat 3Q Sales in the Country
Ford Indicates That It Is Approaching Its Limit with UAW Contract Offer
Electric Vehicle (EV) Sales in the US Surge by 50%, Surpassing 300,000 Units in 3Q; Market Penetration Rises to 8%, According to Cox
SK Warns That US-China Tensions Will Keep EV Battery Costs Elevated
Chinese Raw Material Suppliers for EV Batteries Pursue Deals with US Free Trade Partners to Bypass US Restrictions
Li Auto Sets Aggressive Targets, Aiming for 3 Million Car Sales Assuming 90% EV Penetration in China by 2028
Porsche's Global Shipments Continue to Grow Except in China
Porsche Recalls 2,500 Taycan EVs in China Over Battery Safety Concerns
Stellantis and Samsung Plan to Build a Second EV Battery Plant in Indiana
Stellantis Union in Italy Cuts Its 2023 Production Forecast Citing Weakening Demand
Tesla's China Sales Decline by 11% Year-over-Year in September, But Exports Surge by 50%
UAW Unexpectedly Strikes at Ford's Highly Profitable SUV Plant in Kentucky, Signaling a Setback in Negotiations
UAW Workers Strike at Volvo's Mack Truck Plant, Rejecting Contract Proposal
UAW Warns That New Strikes at Detroit's Big Three Automakers Will Come Without Notice
US Auto Sales Continue to Be Led by Fleet Sales in September, Reports Cox Automotive

In Other Industries

Datacenter/Telco

Ericsson's North America Sales Dip by 60% in 3Q; Takes a $2.9 Billion Impairment Related to a Year-Ago Acquisition

Aerospace

Boeing's Deliveries of 737 MAX Aircraft Fell in September to the Lowest Level Since August 2021

Semiconductors

ASE Records September Revenue at a 10-Month High, but Uncertainty Remains in 4Q Due to Ongoing Inventory Digestion
Amkor Prepares to Open an Advanced Packaging Plant in Vietnam Focusing on CoWoS Capacity
AMD to Acquire Open AI Software Firm Nod.ai
Denso and Mitsubishi Electric Plan to Invest $500 Million Each in Coherent's SiC Business
Onsemi Announces the Hyperlux LP Family of Image Sensors
Littelfuse Introduces IXYS Branded Automotive-Grade P-Channel MOSFET
Microchip Unveils a New Family of PIC 32-bit MCUs with Integrated Hardware Security
SK Hynix, Samsung, and TSMC Receive Approval from the US to Import Advanced Semiconductor Equipment in China
Kioxia and WDC Expected to Agree on a Merger by the End of October, According to a Japanese News Report
Chinese Nexchip Foundry Announces a 10,000 WSPM Expansion of Mature Edge IC Capacity
The Conflict in Israel Poses Risks to the Semiconductor Supply Chain, with Tower Semia and Intel Fabs Most Vulnerable
Samsung's Preliminary 3Q Results Exceed Expectations

Consumer/EMS/Distribution

Apple Plans an OLED iPad Upgrade in 2024
Farnell Partners with Mean Well for the Distribution of Power Supplies
3Q PC Shipments Increase by 11% Quarter-on-Quarter; ODM Forecasts Flat 4Q Shipments; TrendForce Predicts a 2-5% Rebound in 2024
Huawei Stocks Up on Parts to Double Its Mobile Phone Shipments in 2024 to 60-70 Million; Seeks Early Orders from Qualcomm in 1H24
Quanta to Invest $80 Million in AI Server Capacity Expansion in the US
Taiwan Distributors Report Double-Digit Growth in 3Q Sales Due to Increased Demand from Mobile and Consumer Electronics
Wiwinn Opens a Server Assembly Plant in Malaysia and Plans Phase 2 Expansion in 2024

Open as PDF

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.

Related Resources

What Is Allocation in the Semiconductor Industry? From silicon to supply chain: In this article, I’ll give you a better understanding of allocation in the semiconductor industry. Read Article

Where Does Product Lifecycle Management (PLM) Help with Supply Chain Management? PLM is a systematic approach to managing the series of changes a product goes through, from its design and development to its ultimate retirement or disposal. SCM, on the other hand, involves the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. The PLM software market is valued at US$47.3 billion in 2023, and is projected to reach US$80.3 billion by 2030, growing at a CAGR of Read Article

India's New Semiconductor Fab Capacity in 2024 As the global semiconductor industry continues to expand globally, several nations are reassessing and fortifying their roles in this crucial sector. This strategic shift aims to ensure their competitive edge and address the industry's evolving needs. Among these nations, India's strategic move to ramp up its semiconductor fabrication capacity by 2024 stands out as a testament to its ambitions in the global technology arena. India’s initiative is Read Article

How to Create a Global Sourcing Strategy for Parts and Production in PCB Manufacturing A global sourcing strategy should consider four dimensions when being formed (figure 1). These dimensions of geography, compliance and finance, resilience, and responsiveness are critical in building a robust strategy for parts and production in PCB manufacturing. The first dimension, geography, pertains to the physical location of suppliers and manufacturers. It involves considerations such as proximity to raw materials, labor costs, and market Read Article

Ensuring Reliable Sourcing in Medical Device Supply Chains Key complications include the multifaceted complex nature of medical devices, the intricate assembly process, stringent regulatory requirements, import/export restrictions, and a fiercely competitive landscape, and a need for a continuous improvement (CI) system (figure 1). To navigate these challenges, organisations can take actions to invest in research and development, implement strong quality control measures, build robust regulatory teams Read Article

Exploring Octopart’s Powerful Search Filters You may notice something different about our search results pages on occasion: Our filters are periodically redesigned to improve usability and make them more intuitive. Here’s a rundown of our current search views and filters. Two Views to Choose From: Price View and Specs View Whenever you perform a search on Octopart, you’ll be taken to one of two search results views: Price View or Specs View. See Figures 1 and 2. With each view, at the top Read Article

Where Companies Are Going After They Leave China Looking to build resilience through diversity, companies have begun exiting China in favor of friendlier shores. Let's take a look at where companies are going and why. Following economic reforms that provided tax breaks, subsidies, and other incentives and thereby opened China's proverbial doors to foreign investment, China swiftly became the world's most popular manufacturing hub. Low labor costs and a robust infrastructure, including roads Read Article

4 Key Certifications for Electronic Parts Distributors In the rapidly evolving electronics industry landscape, parts distributors are under growing pressure to demonstrate compliance with a range of certifications that are pivotal in ensuring product quality, environmental responsibility and operational safety. These certifications are influencing many facets of electronic parts distribution from supply chain management to end-user satisfaction, with the potential of providing a strategic Read Article

The Chip Demand Rebound is Slower Than Expected; Here's Why While the overall success of the semiconductor industry hinges on teetering supply and demand, the industry strives for equilibrium between them. Particularly in Taiwan, national trade for technology purposes relies heavily on this as chips make up more than 15% of its gross domestic product (GDP). While semiconductor supply increases, reduced purchases of advanced technologies slows demand as companies make cuts in the wake of the global Read Article

Overview of TSCA’s New PFAS Requirements Quick Reference Guide: Important Dates and Resources For most covered entities: The EPA submission period begins on November 12, 2024, and closes on May 8, 2025 Toxic Substances Control Act Section 8(a)(7)- Published October 11, 2023 Central Data Exchange (EPA’s electronic reporting site) Toxic Substances Control Act (TSCA) TSCA Chemical Substance Inventory Instructions for Reporting PFAS Under TSCA Section 8(a)(7) (EPA) FOR FURTHER INFORMATION Read Article

Back to Home

Introduction
- Weekly collection of news, survey results, and insights from Edgewater Research
Data Point of the Week: China's NEV Retail Sales in September
- Highlights of China's NEV retail sales and market trends
Auto Industry Headlines
- Key developments in the automotive sector
Other Industries
- Notable news from datacenter/telco, aerospace, semiconductors, and consumer/EMS/distribution sectors

Take advantage of the world's
most trusted PCB design system.

One interface. One data
model. Endless possibilities.

Effortlessly collaborate with
mechanical designers.

The world's most trusted
PCB design platform

Best in class interactive
routing

View License Options