R&A Electronics Weekly News 09

Catalog

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1.?Tata Motors in talks to raise $1 billion via stake sale in EV business

2.?GM will shut down Indiana plant for 2 weeks

3. NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2023

4.?Microchip to invest US$880 million to expand SiC and Si capacity in Colorado

5.Passenger car registrations: +11.3% in January 2023

01?Tata Motors in talks to raise $1 billion via stake sale in EV business

(Gasgoo News) Tata Motors has begun talks with sovereign wealth funds and private equity investors to raise up to $1 billion via a stake sale in its electric vehicle (EV) business, media reported, citing sources.

Tata Motors plans to sell a significant minority stake eyeing a valuation of about $10.5 billion. The company plans to use the bulk of the proceeds to retire a part of its outstanding debt and infuse a small portion as primary equity in the EV business. At present, the funds and investors include the UAE-based Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, the Saudi Arabia-headquartered Public Investment Fund, Singapore's Temasek Holdings, and KKR and General Atlantic. Tata Motors and some of the companies did not immediately respond to the request for comment.

Comment:

India's car market is tiny, with electric models making up just 1% of total car sales of about 3 million a year. The Indian government wants to grow this to 30% by 2030. Therefore, the Indian EV market will encounter huge development opportunities in the next few years.

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02?GM will shut down Indiana plant for 2 weeks

General Motors has announced plans to shutter production at its Fort Wayne Assembly truck plant in Indiana for two weeks next month as inventory levels pick up and exceed demand. The Fort Wayne Assembly plant is responsible for the production of pickup trucks.

Employees were notified on February 22 that production would be shut down starting March 27, GM spokesman Dan Flores said in a statement. Flores said the two-week shutdown at the plant is to maintain optimal inventory levels with dealerships. The plant constantly reviews and adjusts production schedules according to customers’ needs. The Fort Wayne Assembly truck plant is responsible for building Chevrolet Silverado and GMC Sierra pickups.

Comment:

Earlier this week, General Motors' Corvette assembly plant was idle this week due to a temporary parts shortage. GM spokesman Dan Flores said the parts shortage was not related to semiconductors and the production was expected to restart on February 27.

03?NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2023

NVIDIA today reported revenue for the fourth quarter ended January 29, 2023, of $6.05 billion, down 21% from a year ago and up 2% from the previous quarter. For fiscal 2023, revenue was $26.97 billion, flat from a year ago. GAAP earnings per diluted share were $1.74, down 55% from a year ago. Non-GAAP earnings per diluted share were $3.34, down 25% from a year ago. Nvidia stated its guidance for Q1 2023. The company expects revenue to be around $6.5 billion, implying sequential growth in the high single-digit range.

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Comment:

For revenue structure, the data center and game business remains dominant and the main source of income for Nvidia. The revenue is still higher than the expectation of analyst despite a sharp fall of 21% year-on-year and satisfies market because the market has actively lowered its expectations before. Nvidia’s share price rose by more than 8% after the release of the financial report.

04?Microchip to invest US$880 million to expand SiC and Si capacity in Colorado

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In February 20th, Microchip Technology has announced plans to invest US$880 million over the next several years to increase its silicon carbide (SiC) and silicon (Si) production capacity at its Colorado Springs, Colo. manufacturing facility. According to the company, one significant phase of the expansion is the development and upgrade of its 50-acre, 580,000-square-foot Colorado Springs campus for increased SiC manufacturing targeting automotive/E-Mobility, grid infrastructure, green energy, and aerospace and defense applications.

The Colorado Springs campus currently employs more than 850 people and produces products from 6-inch wafers. The manufacturing technology that Microchip is installing will run on 8-inch wafers, which will significantly increase the number of chips produced at this location. The additional 400 jobs anticipated at the facility will range from production specialists to technical roles in equipment procurement and management, process control and test engineering.

Comment:

With over two-decades of investment in silicon carbide, Microchip's portfolio is designed to provide customers with innovative power solutions. This campus is an integral part of producing its SiC technology to assure customers with supply certainty as they transition to SiC solutions.

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05?Passenger car registrations: +11.3% in January 2023

In January 2023, the region’s positive performance was reflected in three of the four key markets. The strongest gains were seen in Spain (+51.4%) and Italy (+19.0%), followed by France, with a more modest but still solid growth (+8.8%). The exception to this trend was Germany, which recorded a 2.6% decline last month owing to a reduction of electric vehicle subsidy policy.

The best-selling vehicles of Europe are Volkswagen, Stellantis and Renault in January. The European sales of Volkswagen rose by 11.9% year-on-year to 238,000 vehicles, which is far ahead; the sales volume of Stellantis was basically the same as that of the same period last year; while Renault’s soared by 24% year-on-year, beating Hyundai Motor by more than 9,000 vehicles to take third place. Volkswagen and Renault attributed their sales growth to surging orders and new models.

Comment:

European sales of new car grew for the sixth month in a row, helped by rapid growth in new car sales in Spain and Italy. Supply issues for semiconductors and other components, though, have eased, automakers are still grappling with inflation and economic recession. Still, a six-month growth trend in Europe's auto market has fueled hopes of a rebound from the economic downturn due to COVID-19.

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