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Edgewater Research: Electronics Weekly Digest - June 10

Dennis Reed
|  Created: June 7, 2024  |  Updated: August 14, 2024

 

Edgewater Research​

This week, we bring you a curated collection of news summaries, survey results, and channel insights, along with key report summaries.

Data Point of the Week:

US May Manufacturing PMI: The data is mixed. The S&P Global report shows an expansion with a PMI of 51.3, up from 50.0 in April. However, the ISM report indicates a contraction, with a PMI of 48.7, down from 49.2 in April. Notably, new orders and output worsened month-over-month, while the employment index showed improvement.

Eurozone: S&P Global reports a slight improvement in May, with a PMI of 47.3, up from 45.7 in April. Peripheral eurozone countries saw expansion, while the contraction in France and Germany slowed. Overall, output in the Eurozone nearly stabilized, though new orders and purchasing activity continued to decline. Positively, expectations for the next 12 months showed strong optimism.

China: The official manufacturing PMI dipped unexpectedly to 49.5 in May from 50.4 in April, reflecting a renewed contraction in new domestic and export orders. However, the private Caixin China PMI showed an expansion to 51.7, the strongest in over 23 months, driven by increased production and new orders.

Headlines:

Auto Industry:

  • Audi: Cuts shifts due to severe flooding in southern Germany.
  • China Auto Sales: Improved in May compared to the previous month, but remained down year-on-year. NEV (New Energy Vehicle) retail sales remained stable with a 34% increase.
  • BYD: May shipments rose by 6% month-on-month and 38% year-on-year, driven by plug-in hybrid electric vehicles (PHEVs).
  • Ford: Announced that drivers will be able to take their eyes off the road within two years. US auto sales increased by 11% in May.
  • Japan: Japanese automakers are involved in a safety scandal. Toyota has halted some shipments.
  • Stellantis: Expects plug-in hybrid SUV sales to grow by up to 50% and may drop some suppliers to cut EV costs.
  • Tesla: Plans to halt production at its German plant for five days in June. China-made EV sales continued to decline in May amid production cuts.
  • US Auto Sales: New auto sales in May were stronger than expected, reaching a seasonally adjusted annual rate (SAAR) of 15.9 million units.

Industrial Sector:

  • Deere: Announced job cuts in response to slowing farm equipment demand.
  • Germany: Industrial orders fell unexpectedly in April.

Data Centers:

  • Google: Plans to lay off 100 employees in its cloud unit.
  • Microsoft: Laying off 1,500 jobs in the cloud division.
  • HPE: Raised its FY24 forecast due to strong AI server demand and improved Nvidia supply.

Semiconductors:

  • AMD: Launched a new AI chip and revealed its AI roadmap through 2026.
  • ADI and LG Energy: Signed a memorandum of understanding (MoU) to co-develop advanced charging technologies.
  • Chinese AI Chip Firms: Are downgrading designs to secure production from TSMC.
  • Lattice Semiconductor: CEO left to run Coherent.
  • Indie Semiconductor: Exploring a sale.
  • Nvidia: Announced its latest AI GPU platform, Rubin, and is working to certify Samsung’s AI memory chips. A strike at Samsung is not expected to impact memory production.
  • ZF and NXP: Collaborating on SiC gate drivers.
  • STM and Geely: Set up an SiC lab and agreed on a long-term supply deal.
  • SMIC: Pivoting to domestic semi-equipment suppliers for chip processes up to 28nm.
  • Intel: Apollo agreed to pay $11 billion for a 49% stake in Intel's Ireland factory joint venture.
  • Infineon: Launched 650V SiC MOSFETs for industrial and AI power supplies.
  • NXP and Vanguard: Plan to build a $7.8 billion wafer fab in Singapore for automotive, industrial, and consumer applications.
  • Vishay: Acquired Ametherm for $31.5 million.
  • WSTS: Raised its global semiconductor market forecast for 2024 to 16% from 13%, citing stronger computing demand.
  • IC Wafer Capacity: A record volume is expected to come online in 2025.
  • Samtech: Guided a 3% revenue increase for the next quarter; the CEO left abruptly due to a board disagreement.

Other:

  • Maersk: Raised its profit outlook again due to the deeper impact of Red Sea disruptions on world trade.
  • Ciena: Cut its full-year outlook due to continued macroeconomic uncertainty.

This weekly collection from Edgewater Research aims to keep you updated on the latest trends and developments in various sectors.

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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