1. Global Automotive Sector:

• China Auto Market (November 2024):
  • Passenger Vehicle Sales: Reached a record high of over 3 million units, growing 15% YoY. This surpassed the previous peak of 2.6 million units set in December 2023, fueled by government trade-in policies and continued price discounts.
  • NEV Sales (November 2024):
    • Total sales reached 1.5 million units, up 47% YoY.
    • BEVs (Battery Electric Vehicles): Increased by 38% YoY to 908,000 units.
    • PHEVs (Plug-in Hybrid Electric Vehicles): Surged by 89% YoY to 604,000 units.
  • Commercial Vehicle Market: Declined by 15% in both production and sales.
  • NEV Exports: Dropped 12% YoY, while overall auto exports slowed, growing only 3% YoY, following double-digit growth throughout 2024.
• Brazil’s EV Market:
  • Chinese automakers such as BYD and Great Wall Motor are expanding aggressively in Brazil, causing a glut of 70,000 unsold vehicles at ports.
  • Brazil reinstated import taxes on foreign-made EVs, leading to price pressures and unsold inventories. Both Chinese and domestic automakers like VW and Toyota are ramping up local production to compete.
• Global EV Sales (November 2024):
  • Global sales rose 32.3% YoY, marking a third consecutive record high.
  • China accounted for 70% of total global EV sales, growing 50% YoY.
  • In contrast, Europe saw a slight decline in EV sales, while the U.S. and Canada recorded a 16.8% YoY increase.
  • EV Penetration in China: Remained around 50% for several consecutive months, supported by government incentives.
  • EV Traction Inverter Market:
    • Global shipments reached 6.87 million units (+7% QoQ).
    • China captured 61% of global EV traction inverter installations, with 65% of global SiC (Silicon Carbide) inverter installations.
    • Chinese supplier BYD surpassed Denso (Japan) as the world leader in traction inverter installations.

2. Key Auto Company Developments:

• BYD (November 2024): Sold 504,003 vehicles, making it the leader in China’s NEV market. Tesla China sold 78,856 vehicles in the same period.
• Hyundai and BAIC: Committed to investing $1.1 billion into their Beijing Hyundai venture to accelerate EV production and stabilize finances. Hyundai’s sales dropped 41% YoY, leading to a loss of $358 million in the first nine months of 2024.
• GM (General Motors): Decided to halt its robotaxi development at Cruise, its autonomous driving subsidiary, due to high costs and increasing competition. This decision impacted partners like Microsoft, which took an $800 million charge on its investment.
• Stellantis and CATL: Announced a joint investment of up to €4.1 billion in a battery plant in Zaragoza, Spain, to produce lithium-iron phosphate (LFP) batteries by 2026, aiming for a capacity of 50 GWh.
• VW: Faced ongoing cost issues in Germany. Unions and management remain divided, and over 68,000 workers across nine sites participated in strikes. The company is exploring cost and capacity reductions, but tensions remain high.

3. Semiconductor Sector:

• Global Semiconductor Market (2025): Projected to grow by 15% YoY, driven by demand for AI, high-performance computing (HPC), and 2nm technology, according to IDC.
• China Semiconductor Market:
  • Overcapacity in Chinese foundries has led to aggressive discounts of up to 40% for 12-inch wafers and 20-30% for 8-inch wafers, affecting Taiwanese foundries like TSMC and UMC.
  • Chinese foundries are focusing on filling capacity gaps for driver ICs, PMICs, and MCUs, but market recovery has been slow.
• Broadcom (Q4 2024): Reported revenue of $14.05 billion, in line with expectations. AI-related revenue grew by 220% YoY, reaching $12.2 billion for FY24.
• Ayar Labs: Raised $155 million in funding from Nvidia, AMD Ventures, and Intel Capital, valuing the company at over $1 billion. Ayar Labs focuses on using light (photons) to transmit data between chips, aiming to address data transfer and power challenges in AI workloads.
• TSMC:
  • November 2024 revenue was $8.8 billion, down 12.2% MoM but up 34% YoY.
  • TSMC’s Q4 revenue forecast is $26.1B-$26.9B, representing a 9.93%-13.3% increase from Q3.
  • The Arizona plant’s progress is on track, and TSMC plans to produce advanced 4nm GPUs for Nvidia’s Blackwell architecture in 2025.
• Infineon: Plans to localize production of commodity-grade products in China to secure supply chains. Infineon also expects AI-related sales to exceed €1 billion within two years.

4. Government and Policy Impact:

• U.S. CHIPS Act:
  • Preliminary funding under the CHIPS Act includes $33 million for Coherent to build a 150mm indium phosphide production line in Texas, $16 million for SkyWater Technology Foundry to modernize its Minnesota facility, and $50 million for X-Fab to expand its SiC foundry in Texas.
  • Micron received a $6.2 billion subsidy to support its semiconductor manufacturing plans in New York and Idaho, part of a broader $100 billion investment plan.
• EU Green Hydrogen Subsidies: The EU is tightening subsidies for green hydrogen production, limiting support for operators using Chinese-manufactured electrolyzer stacks exceeding 25% of factory capacity. This follows similar efforts by the U.S. and Japan to reduce dependence on Chinese supply chains.

5. Consumer Electronics and Industrial Developments:

• Apple:
  • Plans to introduce its in-house cellular modem (codenamed “Sinope”) in the 2025 iPhone SE, aiming to replace Qualcomm’s chips. Apple intends to phase out Qualcomm’s chips entirely by 2027, starting with Proxima, a homegrown Bluetooth and Wi-Fi chip launching in 2025.
  • Apple is also developing its first in-house AI server chip (codenamed “Baltra”), set for production by 2026, in collaboration with Broadcom.
• Boeing:
  • Delivered 13 jets in November 2024 (down from 56 jets a year earlier), facing production issues and strikes.
  • Announced a $1 billion investment to expand 787 Dreamliner production, aiming to reach 10 jets per month by 2026.
• ROHM: Partnered with Valeo to develop SiC power modules for EV inverters, targeting mass production by 2026. Despite a slowdown in EV demand, ROHM’s SiC business continues to grow, with a target of achieving a 30% market share in SiC semiconductors by 2030.

6. Other Market Insights:

• U.S. New Vehicle Prices (November 2024):
  • Average transaction price (ATP) for new vehicles rose to $48,724 (+1.5% YoY). Despite rising prices, sales topped 1.36 million units, supported by incentives averaging 8.0% of ATP.
  • EV Prices: Fell slightly to an ATP of $55,105, with incentives climbing to 14.9% of ATP, driving strong sales in November, marking the second-best EV sales volume on record