Auto

• BorgWarner announced plans to invest $20 million in Michigan facilities: BorgWarner, an automotive components producer, intends to invest $20 million to enhance their facilities in Michigan. This investment may lead to increased production capabilities, potentially benefiting the company’s revenue and market position. The local economy may also see positive effects due to job creation and increased spending.
• BMW maintained CY23 profit outlook despite stronger 1Q; gave cautious tone and noted may raise some vehicle prices in 2H: BMW had a strong first quarter but is maintaining a cautious outlook for their 2023 profit. They hinted at raising vehicle prices in the second half of the year. This may lead to higher revenue for the company, but could also deter some customers due to increased prices.
• Bosch targeting 6-9% sales growth in 2023: Bosch, an engineering and technology company, aims to achieve a 6-9% increase in sales for 2023. If the company meets this goal, it could positively impact their market position and investor confidence.
• China auto inventory index continued to flash warning signs; China OEM inventory up, offsetting declines in foreign OEM: The rising Chinese auto inventory index signals potential oversupply in the market. As Chinese OEMs increase production, they may be offsetting the decline in foreign OEMs. This could lead to price competition and pressure on profit margins for both domestic and foreign manufacturers.
• Ford cut prices again for Mustang Mach-E EV: Ford has reduced the prices of its electric vehicle, the Mustang Mach-E, for the second time. This move may attract more customers, potentially increasing Ford’s market share in the electric vehicle segment. However, it could also impact their profit margins if the lower price does not lead to a significant sales increase.
• Ford posted strong 1Q results but tempered outlook on rising costs and declining demand in China: Despite reporting strong first-quarter results, Ford expressed concerns about increasing costs and a drop in demand in the Chinese market. This could negatively impact Ford’s future financial performance and market position in China.
• Ford halting F150 ICE and EV factories due to door handle shortages: Ford has temporarily stopped production at their F150 internal combustion engine (ICE) and electric vehicle (EV) factories because of a shortage of door handles. This production halt could lead to delivery delays, potentially affecting customer satisfaction and Ford’s reputation.
• GM has cut several hundred employees in the US: General Motors has laid off hundreds of employees in the United States. While this move may reduce costs in the short term, it could also lead to lower morale among remaining employees and potential negative public perception.
• Japanese automakers struggling in China with sales down 32% Y/Y in 1Q: Japanese car manufacturers are experiencing a significant decline in sales in the Chinese market, with a 32% year-over-year drop in the first quarter. This could negatively impact their market share and profitability in the region.
• Mercedes taps F1 team to build more efficient EVs: Mercedes is collaborating with its Formula 1 team to develop more efficient electric vehicles. This partnership may result in technological advancements and improved EV performance, potentially enhancing Mercedes’ market position in the electric vehicle segment.
• Mercedes CEO says cutting ties with China is unrealistic: The CEO of Mercedes-Benz believes that severing ties with China is not feasible due to the country’s importance in the global auto market. Maintaining a presence in China could provide Mercedes with continued growth opportunities, but may also expose them to potential risks related to geopolitical tensions or changing regulations.
• Neo targets share gains from VW in Europe with new low-cost EV: Neo, an electric vehicle manufacturer, aims to increase its market share in Europe by launching a low-cost EV to compete with Volkswagen. This could lead to increased competition in the EV market, potentially impacting Volkswagen’s market position and providing more affordable options for consumers.
• Lordstown Motors warns of bankruptcy after Foxconn threatens to walk away from crucial funding deal: Lordstown Motors, an electric truck manufacturer, may face bankruptcy if Foxconn, a major technology company, decides not to proceed with a crucial funding deal. This event could impact the electric truck market, as it may reduce the number of available options and potentially increase prices due to decreased competition.
• Stellantis with strong 1Q results and 7% increase of shipments; vehicle inventory noted as back to normal: Stellantis, a multinational automotive company, reported strong first-quarter results and a 7% increase in shipments, with vehicle inventory returning to normal levels. This positive performance may boost investor confidence and signal a healthy automotive market.
• Tesla has resumed taking orders for long-range Model 3: Tesla has started accepting orders for its long-range Model 3 again. This may lead to an increase in Tesla’s market share and sales, as the long-range Model 3 is a popular option for consumers seeking electric vehicles with extended driving range.
• Volvo will lay off 1,300 or 6% of workforce in Sweden: Volvo plans to cut 1,300 jobs, or 6% of its workforce, in Sweden. While this move may reduce costs in the short term, it could also affect employee morale and the company’s public image.
• VW reported 1Q sales grew 22% with stronger US and Europe offsetting declines in China: Volkswagen’s first-quarter sales increased by 22%, with strong performance in the US and Europe compensating for weaker sales in China. This growth may positively impact Volkswagen’s market position and profitability, while also indicating potential challenges in the Chinese market.
• UK auto association lowers outlook for 2023 EV market share: The UK auto association has reduced its forecast for electric vehicle market share in 2023. This lowered outlook may indicate slower adoption of EVs in the UK, potentially affecting the growth prospects of EV manufacturers in the region.
• Used car prices in the US declined by 3% M/M in April; Cox expects declines to continue into the summer: Used car prices in the US fell by 3% month-over-month in April, and Cox, a leading automotive services company, anticipates that this downward trend will persist into the summer. This decline in used car prices may negatively impact the used car market and dealerships, but could also make it more affordable for consumers to purchase used vehicles.

IP&E

• Littelfuse reported 1Q revenue declined 8% Y/Y; inventory correction across distribution and customers expected through 3Q: Littelfuse, a manufacturer of circuit protection, power control, and sensing technologies, reported an 8% year-over-year decline in first-quarter revenue. The company anticipates that inventory correction will occur across distribution channels and customers throughout the third quarter. This decline in revenue may negatively impact Littelfuse’s market position and profitability in the short term. However, the anticipated inventory correction could help stabilize the company’s financial performance and better align supply with demand in the long run.
• Taiwanese passive suppliers expect factory utilization to improve in 2Q: Taiwanese passive component suppliers, which manufacture products like resistors, capacitors, and inductors, predict that factory utilization rates will improve in the second quarter. This expected increase in production may result in a more stable supply of passive components, potentially benefiting electronic device manufacturers that rely on these components. Additionally, the improved factory utilization could positively impact the financial performance and market position of Taiwanese passive suppliers, as they may be able to meet growing demand and capitalize on market opportunities.

Semiconductors

• Microsoft working with AMD to expand into AI processors as an alternative to Nvidia: Microsoft is partnering with AMD to develop AI processors, offering an alternative to Nvidia’s products. This collaboration could increase competition in the AI processor market, potentially driving innovation and providing more options for consumers. It may also impact Nvidia’s market dominance in the AI sector.
• AMD gave weaker 2QCY outlook despite signs of bottoming PCs; datacenter sales expected to recover in 2H on new CPUs: AMD provided a weaker outlook for the second quarter, even as the PC market shows signs of stabilizing. However, they expect datacenter sales to rebound in the second half of the year due to new CPU releases. This mixed outlook could create uncertainty for AMD’s financial performance and market position, but the anticipated recovery in datacenter sales might boost investor confidence.
• NXP with strong 1Q results and 2Q outlook on Auto and Industrial strength: NXP Semiconductors, a leading provider of automotive and industrial electronics, reported strong first-quarter results and a positive outlook for the second quarter. This performance may boost investor confidence and improve NXP’s market position within the automotive and industrial sectors.
• NXP announced it has won 4D image radar solutions design with Neo: NXP has secured a deal with Neo to develop 4D image radar solutions. This collaboration could lead to innovative radar technology that enhances vehicle safety and performance, potentially benefiting both companies’ market positions and revenues.
• Infineon has broken ground on a new Dresden fab: Infineon, a semiconductor manufacturer, has begun construction on a new fabrication facility in Dresden. This expansion may increase Infineon’s production capabilities, potentially improving their market position and financial performance.
• Infineon signs two Chinese SiC suppliers to support China SiC expansion: Infineon has partnered with two Chinese silicon carbide (SiC) suppliers to support its expansion efforts in China. This collaboration may facilitate Infineon’s growth in the Chinese market and strengthen its position in the SiC sector.
• Infineon with strong 1Q results and 2Q guide; warns of moderation in 2H margins due to FX, ramp-up cost, and increased underutilization on signs of inventory build across markets: Infineon reported strong first-quarter results and guidance for the second quarter but warned of potential margin reductions in the second half of the year due to foreign exchange rates, ramp-up costs, and signs of inventory build-up. This mixed outlook may create uncertainty for Infineon’s financial performance and impact investor confidence.
• AMD has placed orders with Samsung Foundry for PC CPUs according to Asian media: AMD is reportedly ordering PC CPUs from Samsung Foundry, indicating a potential expansion of its manufacturing capabilities. This move could help AMD meet growing demand for its products, potentially improving its market position and financial performance.
• Global semi sales declined 8.7% Q/Q (March flat M/M) says SIA: The Semiconductor Industry Association (SIA) reported that global semiconductor sales decreased by 8.7% quarter-over-quarter, with March sales remaining flat month-over-month. This decline could negatively impact the semiconductor market, potentially affecting the revenues and market positions of semiconductor manufacturers.
• Microchip changing strategy, allowing customers to push out orders; targets average lead times at 26w by 2H23; pauses capacity expansion and cuts FY24 capex due to inventory build: Microchip, a semiconductor manufacturer, is modifying its strategy by allowing customers to delay orders and targeting a 26-week average lead time by the second half of 2023. The company is also pausing capacity expansion and reducing capital expenditures for fiscal year 2024 due to inventory buildup. This change in strategy may impact Microchip’s financial performance and market position, as well as affect the semiconductor supply chain.
• onsemi with strong 1Q results and 2Q guidance on Auto, Industrial strength, and faster SiC ramp: onsemi, a semiconductor company, reported strong first-quarter results and positive second-quarter guidance due to strength in the automotive and industrial sectors and a faster silicon carbide (SiC) ramp. This performance may boost investor confidence and improve onsemi’s market position within these sectors.
• Qualcomm with disappointing 2Q outlook; cuts 2023 smartphone shipments forecast to down high-single digit: Qualcomm, a major semiconductor and telecommunications company, provided a disappointing outlook for the second quarter and reduced its 2023 smartphone shipments forecast. This negative outlook could impact Qualcomm’s financial performance, market position, and investor confidence.
• Qualcomm considering dual-sourcing next-gen Snapdragon chips from Samsung and TSMC: Qualcomm is reportedly considering sourcing its next-generation Snapdragon chips from both Samsung and TSMC. This dual-sourcing strategy could help Qualcomm diversify its supply chain and mitigate risks, potentially leading to more stable chip supply and improved financial performance.
• Qualcomm planning 20% layoff in its mobile division according to reports from Asia: Qualcomm is reportedly planning to lay off 20% of its mobile division workforce. While this move may reduce costs in the short term, it could also affect employee morale, company reputation, and potentially impact product development and innovation.
• TSMC oversea pricing expected to be 20-30% above products from Taiwan: TSMC’s overseas pricing is anticipated to be 20-30% higher than its products from Taiwan. This price difference may impact the company’s competitiveness in overseas markets and potentially affect its financial performance and market position.
• TSMC in talks with partners to build $11B fab in Germany: TSMC is discussing plans with partners to construct an $11 billion fabrication facility in Germany. If realized, this expansion could increase TSMC’s production capabilities and enhance its presence in the European market, potentially benefiting its financial performance and market position.
• Global silicon wafer shipments declined 9% Q/Q and 11% Y/Y in 1Q says SEMI: SEMI, an industry association, reported that global silicon wafer shipments decreased by 9% quarter-over-quarter and 11% year-over-year in the first quarter. This decline may negatively impact the semiconductor industry, potentially affecting the revenues and market positions of silicon wafer manufacturers and related companies.

Consumer

• Apple beat 1Q expectations on stronger iPhone sales; Macbooks, wearables weaker: Apple reported first-quarter financial results that exceeded expectations, primarily due to stronger iPhone sales. However, the company experienced weaker sales in its Macbook and wearable product lines. The strong iPhone sales may boost investor confidence in Apple and positively impact its market position in the smartphone industry. On the other hand, the weaker sales in Macbooks and wearables could indicate increased competition or shifting consumer preferences, potentially affecting Apple’s overall market position and financial performance in these product categories.
• Apple iPad orders seen as improving in April says DigiTimes: According to DigiTimes, Apple’s iPad orders are expected to improve in April. This increase in orders may signal higher demand for iPads, potentially resulting in stronger sales and improved financial performance for Apple in the tablet market. An uptick in iPad orders could also positively impact the company’s supply chain partners and related industries.

Distribution

• Arrow component sales flat Q/Q with strength in Europe offsetting weaker Asia, N.A; Arrow inventory up 4% Q/Q and 19% Y/Y to record high: Arrow Electronics, a global provider of electronic components and services, reported flat quarter-over-quarter component sales, with strength in the European market offsetting weaker performance in Asia and North America. Arrow’s inventory increased by 4% quarter-over-quarter and 19% year-over-year to a record high. This flat sales performance may indicate increased competition or market saturation, potentially affecting Arrow’s financial performance and market position. The high inventory levels could also put pressure on Arrow’s supply chain and lead to potential pricing adjustments or sales promotions to reduce excess stock.
• Avnet sales declined 3% Q/Q; Europe, Americas stronger, Asia weak; Avnet inventory up 8% Q/Q and 45% Y/Y to record high: Avnet, another global distributor of electronic components, reported a 3% quarter-over-quarter decline in sales, with stronger performance in Europe and the Americas but weakness in Asia. Avnet’s inventory increased by 8% quarter-over-quarter and 45% year-over-year to a record high. The decline in sales could negatively impact Avnet’s financial performance and market position, while the high inventory levels may lead to supply chain challenges or force the company to adjust pricing or offer sales promotions to clear excess stock. Both Arrow’s and Avnet’s inventory situations may signal broader issues within the electronic components industry, potentially affecting other companies in the sector.