Electronics Supply Chain Weekly Digest: June 27, 2025

DATAPOINT OF THE WEEK: New car registrations in Europe increased 1.9% Y/Y and 3.3% M/M in May off a lower base following a 24.4% M/M decline in April, according to ACEA data. BEV sales increased 27.4% Y/Y and 4.8% M/M, marking the 5th straight month of Y/Y BEV growth. BEVs now account for 17.4% of the market, up from 13.9% in May 2024. PHEV sales increased 46.7% Y/Y and 10.3% M/M growth, reaching its third straight month of strong double digit Y/Y growth. HEVs continued its strong growth, increasing 13.9% Y/Y and 1.7% M/M in May following a decrease of 29.3% Y/Y in April. HEVs now account for 34.1% of the market, up from 30.5% in April 2024. The strong Y/Y growth in EVs has resulted in an acceleration in the decline of ICE vehicle registrations. ICE registrations declined 19.1% Y/Y in May, marking its 12th straight month of Y/Y declines, but did see a 2.5% increase M/M.

Headlines:

Auto/Transportation

• BYD tempers China factory output amid inventory buildup according to Reuters report, but CnEV denies slowdown
• Continental’s Aumovio spin-off targets €24B in sales with 22% growth goal
• Automakers urge faster Autonomous Vehicle rule changes as US risks falling behind China
• US new vehicle sales in June projected to rise 2.5% Y/Y to 1.25M units on an adjusted basis, according to J.D. Power and GlobalData
• Xiaomi undercuts Tesla with $35k YU7 SUV as EV orders surge past 200k
• Xiaomi secures 50-year Beijing site lease to expand EV production despite China Auto overcapacity concerns, according to DigiTimes

Datacenter

• Trump administration readies executive actions to boost energy, AI infrastructure

Industrial

• EU loosens state-aid rules to back clean tech and counter US, China subsidies, according to Bloomberg

Semiconductors

• Ambarella explores sale amid AI growth push and reliance on key distributor, says Bloomberg
• Continental launches in-house chip unit with GlobalFoundries to support Aumovio
• China to lead global foundry capacity by 2030 amid geopolitical shifts, says Yole Group
• Foundry 2.0 revenue grows 13% Y/Y in 1Q25 to $72.3B, driven by AI and HPC, says Counterpoint Research
• Intel to exit automotive chip business to focus on data centers and client computing, reports DigiTimes
• Micron’s HBM sales surge nearly 50% Q/Q as AI datacenter demand drives growth
• Microsoft’s Maia AI chip delayed to 2026, expected to underperform Nvidia’s Blackwell, according to The Information
• Nvidia RTX Pro 6000 shipments expected strong but face challenges in China, TrendForce says
• Renesas scales back power semiconductor ambitions, delays $20B revenue target to 2035, CEO says
• Samsung accelerates 2nm foundry setup in Texas for 2026, according to TrendForce
• Snowcap Compute raises $23M, targets 25x more efficient AI chips by 2026, according to Reuters

Consumer/Other

• China-US rare earths trade dispute reportedly resolved, paving way for expedited mineral and magnet exports, says Bessent
• Taiwan’s export controls on Chinese tech firms provoke sharp Beijing backlash, according to DigiTimes
• US tariff talks aim for completion by September, with deals reached on UK and China, says Treasury Secretary Bessent