supply chain

The U.S. is in talks with Taiwan to shift towards a “50-50” split in semiconductor production, aiming to mitigate reliance on Taiwan’s dominance (over 90%) in the global market and bolster domestic chip manufacturing. Citing national security and supply chain resilience, the U.S. seeks to produce roughly half its semiconductor needs domestically, requiring substantial investment (>$500B). While Taiwan’s TSMC, a key player, invests in the US, the move challenges the “Silicon Shield” theory and reflects concerns about geopolitical tensions and potential vulnerabilities.

BYD, the Chinese EV manufacturer, has a contingency plan to address potential disruptions to its Nvidia chip supply, despite no current directive from the Chinese government to cease their use. According to Executive VP Stella Li, BYD’s vertical integration and strong in-house technology offer backup solutions, similar to how they navigated the Covid-19 semiconductor shortage. While Nvidia’s automotive chips are currently unaffected, a potential ban in China could significantly impact the autonomous driving ecosystem, prompting domestic chip development and posing challenges for automakers reliant on Nvidia.

Apple CEO Tim Cook addressed concerns about iPhone 17 price increases, stating they aren’t due to tariffs. This comes after a $100 price hike for the Pro model, despite unchanged entry-level prices. While analysts anticipated tariff-related increases, Cook highlighted Apple’s efforts to mitigate impact, including supply chain diversification by shifting production to India and Vietnam. Apple absorbs significant tariff costs and balances global operations with U.S. investments. The company also faces challenges from competitors and navigating the AI landscape, focusing on practical AI applications rather than overt marketing.

Apple has strategically adjusted iPhone pricing, increasing the iPhone 17 Pro’s starting price to $1,099 and introducing the iPhone 17 Air at $999. These changes address escalating input costs and tariff challenges, despite supply chain diversification. To offset the price increase, base iPhone 17 models now offer 256GB of storage. While the standard iPhone 17 and Pro Max prices remain stable, storage upgrades still boost revenue. Apple maintains consistent pricing for AirPods and Apple Watch, reinforcing brand value.

Luckin Coffee launches its “Just Drink Origin” festival, reinforcing its dedication to sourcing premium ingredients. Actress Tang Wei returns as the “Luckin Coffee Global Origin Advocate,” promoting the initiative. Since 2023, Luckin has invested heavily in its “Global Bean Hunting Program,” establishing offices and partnerships in key coffee-growing regions like Ethiopia and Brazil. This vertical integration ensures quality control and strengthens Luckin’s supply chain for coffee beans, coconuts, and jasmine flowers, solidifying its market position and driving long-term growth.

Sony has completed shifting its PlayStation 5 (PS5) console production for the U.S. market out of China in response to U.S. tariffs. According to CFO Hiroki Totoki, this supply chain realignment aims to mitigate the impact of trade tensions. The production shift for PS5 peripherals is expected to be finalized by the end of September 2025. While current PS5 prices in the U.S. remain stable, Sony will dynamically adjust future pricing based on various factors including profitability and market competitiveness.

In June, 17 Chinese automakers pledged to cap supplier payments at 60 days. Two months later, some companies, including FAW, Dongfeng, and GAC, are actively working towards this goal, with three already achieving it. Companies are adjusting financial strategies and streamlining processes. This commitment aligns with upcoming regulations mandating 60-day payment terms for SMEs, aiming to improve the business environment and alleviate payment arrears. CCID highlights specific initiatives by FAW, GAC, and SERES.

A former Motorola CEO discussed the difficulties of reviving US manufacturing, citing the company’s failed 2013 attempt to assemble Moto X smartphones in Texas. Despite employing 4,000 workers, the factory closed within a year due to disappointing sales. Challenges included a fragmented supply chain reliant on Asian components, leading to high transportation costs. Crucially, talent acquisition proved difficult, with extensive training needed and a prevailing sentiment that factory work isn’t desirable, hindering recruitment and retention.

Southchip introduced the SC77450CQ, its second-generation automotive-grade High-Side Switch (HSD). This product marks a significant advancement, utilizing Southchip’s vertically integrated BCD process and a fully domestic supply chain. As the first high-side switch with complete domestic sourcing and integrated technology, the SC77450CQ challenges overseas dominance. Key features include: quad-channel configuration, low on-resistance (50mΩ), wide voltage range (4V-28V), high-precision current sensing (±4% at 2A), and comprehensive protection mechanisms suitable for automotive and industrial use.

BYD has officially named its first fleet of eight transport vessels, marking a significant step in establishing a global logistics network. Seven ships are operational, with “Jinan” entering sea trials. The standardized design of vessels like “Pioneer 1,” “Shenzhen,” and “Zhengzhou” promises streamlined costs and efficient operations. This dedicated fleet addresses international logistics challenges amid BYD’s surging overseas EV sales and leverages domestic manufacturing hubs, signaling its commitment to global market leadership.