Edgewater Research: Electronics Weekly Digest - June 17

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

DATAPOINT OF THE WEEK:

The European Commission announced on Wednesday that it would impose extra duties of up to 38.1% on imported Chinese electric cars starting in July. Brussels stated it would add tariffs of 17.4% for BYD, 20% for Geely, and 38.1% for SAIC on top of the existing 10%, citing excessive subsidies as the reason. The EU's provisional duties are set to apply by July 4, with the anti-subsidy investigation continuing until November 2, when definitive duties, typically for five years, could be enforced. The Commission indicated it would apply rates of 21% for companies deemed to have cooperated with the investigation and 38.1% for those that had not. China responded by calling the tariffs protectionist behavior. Reports suggest the German government is working to prevent or soften the European Union's new tariffs on Chinese electric vehicles due to concerns that China may retaliate against German automakers operating in China.

Auto

• Audi to invest $1 billion in EV projects in Mexico
• Chinese automakers committed to Europe despite EV tariff probe, industry group says
• European nations compete for Chinese EV factories even as EU weighs tariffs
• Germany new car sales weaken in May; xEV sales trend worsens with YTD sales down 7%
• Germany seeks to prevent or soften EU tariffs on Chinese EVs
• China May retail sales revised higher by CPCA; May exports weaken to the lowest in 4 months
• China urges EU to reverse 'wrong practices' on EV tariffs
• US raises fuel economy rules much less than first proposed
• Volvo shifting EV production to Belgium to avoid China tariffs, The Times reports
• Tesla sales in China rebound strongly in May while exports plummeted
• Tesla expects to raise price of China-made cars in EU after duty increase
• Stellantis may move some EV output to Eeurope over China tariffs
• Cox US dealer sentiment index: As market uncertainty grows, dealers remain pessimistic and cautious
• Nio says commitment to Europe EV market 'unwavering' despite tariff increase
• GM trims 2024 EV forecast amid slower-than-expected demand
• US new Auto inventory units highest since Dec-20; days of supply in-line with Pre-Covid average

Industrial/Aerospace

• ABB considering sale of some electric mobility assets according to Bloomberg
• Boeing plane deliveries drop by half in May year-on-year
• Euro Zone kicked off the second quarter with decline in industrial

Datacenter

• AWS to invest billions into datacenters in Taiwan
• Microsoft to invest $7.16 bln in new data centres in northeastern Spain

Semiconductors

• Broadcom deliveres stronger results and outlook on AI and VMware upside; sees non-AI business modestly recovering in 2H
• GlobalWafers some data systems were attacked by hackers, and some factory production lines were affected
• Intel to halt $25-billion Israel plant
• Vanguard foundry revenue grows 5% M/M in May; 2Q wafer shipments projected to grow 18% Q/Q; 2H demand projected modestly better than 1H
• Vishay launches its first SiC MOSFET line at 1200V
• US weighs more limits on China’s access to chips needed for AI
• MediaTek designs Arm-based chip for Microsoft's AI laptops
• Samsung unveils foundry technology road map to win AI business
• Infineon completes first phase of 200mm SiC wafer fab in Kulim
• onsemi to cut 1,000 jobs worldwide

Other

• Apple unveiled its long-awaited AI features for iOS
• Dragon Boat data show China tourists underspending 2019 levels
• Elon Musk to ban Apple devices if OpenAI is integrated into iOS