Electronics Supply Chain Weekly Digest: September 12, 2025
09/19/2025 //
DATAPOINT OF THE WEEK: Passenger car retail sales in China reached 1.885M in August, increasing 4.7% Y/Y and 9.3% M/M marking the second straight month of single digit Y/Y growth following 5 straight months of double-digit Y/Y growth, according to the China Passenger Car Association (CPCA). NEV retails sales came in at 1.1M units in August, surpassing 1M level after not reaching that in July. NEVs were up 11.6% M/M and 7% Y/Y in August. BEV sales totaled 686k units and increasing 13% M/M and 18% Y/Y, which is the slowest Y/Y growth in a month since January. PHEVs totaled 414k units, up 8.9% M/M, but down 7% Y/Y. August marked the second consecutive month of Y/Y declines in Hybrid vehicles, which are the only two months with Y/Y decline in our dataset. NEV penetration stood at 55.2%, up 1.3 percentage points Y/Y, and 1.1 percentage points M/M. NEV exports totaled 204k, down 9k units M/M, but more than double Y/Y. CAAM data for August came in much higher than CPCA, with total sales amounting to 2.857M units, NEV sales at 1.395M, BEV at 908k, and PHEVs at 487k.
Headlines:
Auto/Transportation
- Bosch CEO flags Auto sector pressure to continue into 2026, notes trade uncertainties could weigh on 2025 sales growth
- BYD to start local EV production in Hungary by end of year, Turkey in 2026, launches Seagull hatchback and expands PHEV lineup
- CATL’s Jianxiawo lithium mine in China set to restart production sooner than expected, potentially impacting battery-metal market balance, says Bloomberg
- Valeo CEO urges minimum EU content rules for cars to boost competitiveness amid EV transition, Chinese competition, and tariff uncertainty
- Stellantis abandons 2030 all-EV target as EU 2035 CO₂ rules seen unachievable; Volvo, Polestar warn weakening targets risks market confidence and benefits China
- Hongqi plans 15 EV and hybrid models in 25 European markets by 2028, debuts EHS5 SUV with 550 km range, 20-min fast charging, and 200+ dealers planned
- Hyundai delays Georgia battery plant 2–3 months after US immigration raid arrests 475 foreign workers, secures alternate battery sourcing meanwhile
- European automakers focus on affordable EVs at Munich IAA, scale back pure EV plans amid weak demand, US tariffs, and Chinese competition
- Leapmotor targets 1M global sales in 2026, 4M within a decade, 60% from overseas; expands to 15 models by 2027 with Stellantis partnership
- Mexico to raise tariffs on Chinese and Asian cars to 50%, plus steel, textiles, toys, and motorcycles, protecting 325k local jobs amid US pressure and trade pact review
- Stellantis prepares for US tariff impact, plans revenue boost with new launches and popular model reintroductions, US market top priority
- US new-vehicle inventory falls to 2.76M in September, days’ supply rises to 77; sales supported by EV incentives, average price $48,697, according to Cox
- US EV adoption set to slow after $7.5k tax credit expires, projected to reach 11% by 2029, says Bloomberg
- VW to invest €1B in AI by 2030, targeting €4B savings by 2035, apply tech across vehicle development, operations, and IT; unveils ID.CROSS electric SUV
Datacenter
- Google Cloud secures $58B in future revenue over two years, serves top AI labs, surpasses $50B annual run rate; Alphabet raises 2025 capex to $85B
- OpenAI to buy $300B in computing power from Oracle over five years; OCI revenue forecast to grow 77% Y/Y to $18B, multi-cloud deals drive long-term expansion
- Spain’s power grid nears saturation, threatening data center growth; demand set to double by 2028, €58B investment projected through 2030
Industrial
- Airbus targets 820 jet deliveries in 2025, engine supply remains key challenge; expands in China with second assembly line amid sector pressures
- US solar installations could drop 27% from 2026–2030 after clean energy subsidy rollbacks; costs rise and investment slows despite 82% of new capacity in 2H25, says SEIA
Semiconductors
- Alibaba and Baidu adopt homegrown AI chips for model training, partially replacing Nvidia amid US export restrictions, according to The Information
- Ayar Labs and Alchip partner to advance CPO for AI accelerators, combining optical I/O and advanced packaging with TSMC tech to boost efficiency and scalability
- Kioxia and Nvidia plan ultra-fast SSDs by 2027 for AI servers, bypassing CPUs with direct GPU connection, AI-driven NAND demand could reach $29B by 2029, says Nikkei
- Apple to use MediaTek 5G RedCap modems in next-gen Apple Watch Ultra, first major MediaTek component adoption; 5M units allocated to meet demand, according to TrendForce
- Nvidia’s shift from GB200 to GB300 server racks slows ODM revenues in July–August, with Quanta and Wistron down but growth expected to resume in 4Q, says DigiTimes
- Nvidia to launch Rubin CPX AI chip by end of next year, succeeding Blackwell series
- NXP appoints Sandy Hu, ex-TI China president, as SVP of sales and marketing for Greater China to boost local strategy amid geopolitical and competitive challenges
- Panasonic to invest $115M in Thailand plant for copper materials for AI servers, starting 2027, doubling output by 2029; AI server product sales target $678M by 2030, says Nikkei
- Globalwafers chair Doris Hsu stresses semiconductor leadership hinges on critical materials access and supply-chain resilience
- South Korea aims to double SiC semiconductor self-sufficiency to 20% by 2030 with $66M funding
- STMicro extends SPC58 automotive microcontroller longevity program to 20 years, guaranteeing supply through 2038–2041
- Synopsys 3Q revenue misses at $1.74B due to Design IP slowdown and major foundry client challenges; China cautious despite eased US export rules; 10% workforce cut planned through FY26
- US Commerce proposes annual approvals for Samsung and SK Hynix chip exports to China, replacing indefinite VEUs and introducing new site license regulatory steps
- US court approved Wolfspeed’s Chapter 11 plan, cutting debt ~70% ($4.6B) and annual interest ~60%
Consumer/Other
- Apple launched new iPhone Air that includes A19 Pro chip, N1 Wi-Fi, C1X cellular, AirPods Pro 3, and new Watch; prices unchanged despite US tariffs
- Apple likely to delay China shipments of iPhone Air over eSIM regulatory approval, while iPhone 17 models launch Sept 19, says Nikkei
- EU states debate 2040 net-90% target, carbon credit imports, and free allowance phase-out
- German exports in July fell 0.6% M/M as US shipments dropped 7.9% on new tariffs, partly offset by 2.5% growth to EU markets
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Dennis Reed
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 an 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.