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Edgewater Research: Electronics Supply Chain Weekly Digest - 8/18/23

Dennis Reed
|  Created: August 21, 2023  |  Updated: July 1, 2024
|  Open as PDF

Important Disclosures in the Appendix

Edgewater Research

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

DATAPOINT OF THE WEEK: According to reports from Asia, TSMC has lowered its foundry quotes for the next few quarters due to lack of order visibility and order momentum from customers. The reports state that TSMC is lowering prices for mature process nodes 65/55/28/22/16/12 nm by as much 10% in return for volume orders while prices for advanced process nodes (7nm and below) have remained unchanged.  This is the first time since the pandemic that TSMC has been noted to have lowered foundry prices for mature process nodes.   

Headlines:

Auto

  • BYD has reportedly given up on the plans to equip its cars with Baidu’s self-driving technology
  • China retail sales of NEVs from Aug 1st to 13th increased 38% Y/Y, consistent with the trend in July
  • CATL announced a next gen LFP battery that can charge in 10 minutes; mass production to start by year end.
  • EV battery imports the latest to face scrutiny under US law on Chinese forced labor
  • Texas approves plan to mandate Tesla tech for EV chargers in the state
  • Global xEV sales increased 43% Y/Y in 2Q says TrendForce; BYD seen closing on Tesla market share
  • Fisker to add Tesla's EV charging connector by 2025
  • Nikola recalls all battery-electric trucks, halts sales after fire probe
  • Tesla cut prices in China twice this week
  • Tesla launched cheaper version of its X and S models in the US
  • Tesla’s new Model 3 has reportedly started production in China; first deliveries expected in October
  • US Auto sales increased 3% M/M on an adjusted basis says US Census Bureau
  • US new vehicle affordability improved in July with higher incentives offsetting higher rates says Cox Automotive
  • UAW members have until Aug. 24 to vote to authorize strikes at the Detroit Three automakers; UAW calls recent talks as slow to progress
  • US used vehicle prices remained flat in the first half of August compared to end of July while used supply declined 3 days says Cox
  • Xpeng reported wider-than-expected quarterly loss as it struggles to ramp up deliveries

Datacenter

  • Dell planning additional lay off at its sales division; rely more on channel partners
  • IBM to close its factory in Hungary and move production to Mexico

IP&E

  • TE announced plans to acquire Swiss electromagnetic specialist Schaffner for $365M

Semiconductors

  • Arrow replaces its head of Global Component a year after recruiting him; promotes head of US Components to lead Global team
  • Avnet reported stronger than expected results and outlook
  • Japan planning to implement tax breaks for EV battery and semi production in 2024, emulating US and Europe
  • South Korean foundries have lowered prices for 8-inch wafers by 10% according to reports from Korea
  • Infineon and Chicony power expanded partnership for use of Infineon’s GaN solutions in next gen CE fast chargers
  • Intel scrapped its plans to acquire Tower Semiconductor due to inability to get regulatory approval from China
  • Taiwan Semi Industry Association lowered its 2023 semi output forecast to down 13% from down 12% prior
  • Saudi Arabia and United Arab Emirates have placed orders for thousands of Nvidia AI GPUs
  • SEMI says the decline in global semi sales is beginning to moderate and industry expected to recover in 2024
  • SMIC reported 18% drop in 2Q revenue noting demand remains below expectations
  • Vishay is opened new resistor factory in Mexico
  • Qualcomm seen as planning to lay off 200 employees in Taiwan
  • Taiwan planning an initiative to increase share of Taiwan IC design houses within next ten years
  • Silicon Motion will seek damages over collapse merger deal with MaxLinear
  • Tier 1 foundries are asking Japanese raw silicon wafer suppliers to revisit LTAs and lower prices for 2024

Consumer

  • China smartphone shipments declined 15% M/M and 24% Y/Y says China Ministry
  • Counterpoint cuts its 2023 global smartphone shipment forecast to 6% Y/Y
  • PC shipments forecasted to remain flat Q/Q and decline single digits in 4Q says DigiTimes research
  • Foxconn cuts its full year revenue forecast on sluggish China and global macro uncertainty
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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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