1. Global Manufacturing Insights:

• US ISM Manufacturing PMI (Oct): Dropped to 46.5 (down from 47.6 in Sep), signaling an accelerating decline in production, new orders, and employment in the manufacturing sector.
• S&P US Manufacturing PMI (Oct): 48.5 (up from 47.3 in Sep), reflecting continued contraction in output and new orders, though at a slower rate compared to September.
• China Manufacturing PMI (Official): Reached 50.1 in October (up from 49.8 in Sep), showing growth for the first time in six months, largely driven by large enterprises.
• China S&P/Caixin Manufacturing PMI (Oct): 50.3 (up from 49.3 in Sep), indicating growth in new orders and output.
• Japan Manufacturing PMI (Oct): Dropped to 49.2 (down from 49.8 in Sep), marking the fastest contraction in three months, largely due to weak domestic and export demand, particularly in the automotive and semiconductor sectors.
• South Korea Manufacturing PMI (Oct): Stayed at 48.3, marking the second consecutive month of contraction, with factory activity remaining weak due to sluggish demand across key sectors.
• Southeast Asia: Factory activity in Malaysia and Indonesia contracted in October, while Taiwan and Vietnam reported continued expansion.

2. Automotive Sector:

• BYD: Posted a 24% increase in Q3 revenue, reaching 201.1 billion yuan ($28.2 billion), surpassing Tesla’s $25.2 billion. Passenger car sales in October hit a record 500,526 units (+66% YoY), driven by hybrids with enhanced powertrains offering ranges exceeding 2,000 km.
• China EV Market (Q4 Surge): Driven by increased national and local subsidies, sales of electric vehicles (EVs) are expected to rise significantly in Q4. Major domestic brands like BYD and Geely are on track to meet annual sales targets, while foreign brands are maintaining steep discounts to avoid losing market share.
• Chinese EVs in Europe: Chinese EV brands captured 8.5% of the European EV market in September, down from 9.6% YoY, indicating the impact of looming higher import tariffs.
• Volkswagen (VW): VW plans to close at least three factories in Germany and lay off tens of thousands of workers as part of a more significant restructuring. This includes exploring a 10% wage cut and a potential two-year wage freeze across Europe. VW is also downsizing its remaining plants to adapt to the changing market dynamics.
• Ford: Reduced its full-year profit outlook to $10 billion (down from $10-12 billion). The company is struggling with a $5 billion loss on its EV business in 2024, largely due to overcapacity, intense price competition, and disruptions tied to supply chain issues caused by recent hurricanes.
  • F-150 Lightning: Ford has decided to temporarily shut down its Michigan plant that produces the F-150 Lightning plug-in pickup truck through the end of the year, citing weakening EV demand. While sales of the Lightning are up, they fall short of expectations due to high prices and insufficient charging infrastructure.
• Li Auto (Q4 2024 Deliveries): The company expects to deliver between 160,000 and 170,000 units in Q4, representing a 21.4% YoY growth.
• Stellantis (Q3 2024 Revenue): Stellantis’ revenue fell by 27% due to reduced shipments, weaker pricing power, and bloated inventories. The company aims to reduce inventories at U.S. dealers by 100,000 vehicles by November-end, faster than expected.

3. Semiconductor Sector:

• AMD: Exceeded Q3 expectations due to strong datacenter and PC sales. The company raised its datacenter GPU outlook for 2024 to $5 billion, an increase from the previous $4.5 billion projection. AMD’s total addressable market (TAM) for AI accelerators is expected to reach $500 billion by 2028, marking a strategic shift.
• Intel (Q3 2024): Despite reporting better-than-expected results, Intel still posted a $16.6 billion net loss. It recognized $2.8 billion in restructuring charges and $15.9 billion in impairment charges related to its Intel 7 process node and goodwill impairments from the Mobileye unit. Intel plans to ship 100 million AI PCs by the end of 2025 and is optimistic about the competitive potential of its upcoming 18A process node.
• TSMC (Taiwan Semiconductor Manufacturing Company): Announced a price increase for its 5nm, 4nm, and 3nm nodes by 4% starting in 2025. It plans to raise prices by 8-10% for high-performance computing (HPC) products and by 6% for mobile communication clients.
  • TSMC is also expanding its CoWoS (Chip-on-Wafer-on-Substrate) packaging capacity, with plans to handle 65,000 wafers per month by Q4 2025. This represents a 113% surge in global demand, with CoWoS-L accounting for 54.6% of TSMC’s capacity.
• onsemi: Received Category 1A Trusted Supplier accreditation from the U.S. Department of Defense, which allows the company to manufacture advanced, secure semiconductors for aerospace and defense sectors.
• Infineon: Developed the world’s thinnest silicon power wafer at just 20µm, improving energy efficiency, power density, and reliability for power conversion solutions. This innovation reduces power loss by over 15%.

4. Consumer Electronics and Industrial Developments:

• Philips: Slashed its 2024 sales outlook, with shares dropping 16% after reporting a significant decline in demand from China. This drop was attributed to weaker consumer confidence and a state-led anti-corruption campaign impacting hospital orders.
• Apple (Q3 2024): Reported a 2% increase in iPhone sales, while other product lines (Mac, iPad, and wearables) underperformed. Total sales rose 6.1% to $94.9 billion, but revenue from China missed expectations.
• Samsung (Q3 2024): Semiconductor business profit dropped 40% QoQ due to weaker demand for AI chips. However, the company expects HBM3E sales to improve in Q4, driven by continued qualification progress at Nvidia.

5. Global Supply Chain Developments:

• China Industrial Profits (Sep 2024): Industrial profits plunged 27.1% YoY, following a 17.8% decline in August. The National Bureau of Statistics attributed the slump to weaker demand and a sharper drop in producer prices. This downturn in profits has heightened concerns about China’s economic recovery, further compounded by deflationary pressures, subdued loan demand, and softer export growth.
• SiC (Silicon Carbide) Market (China): SiC prices have fallen sharply due to rapid capacity expansion. Chinese manufacturers are ramping up production to capture future market share, though the SiC market remains highly concentrated, with the top five players controlling 92% of the market.
• Gartner Semiconductor Forecast (2024): Raised its global semiconductor sales forecast for 2024 to 18.8% (up from 16.8%) due to strong demand for AI chips.

6. Regulatory and Policy Impact:

• US Restrictions on Chinese Tech Investments: The Biden administration finalized rules limiting U.S. investments in Chinese AI, semiconductor, and quantum technology sectors, effective January 2, 2025. These restrictions aim to curb Chinese advancements in high-tech and military capabilities.
• US Semiconductor Investment: The U.S. government announced an $825 million investment in a new semiconductor R&D facility in Albany, NY, aimed at fostering innovation in EUV technology.