Daimler to cut out suppliers to fund software hiring spree

Daimler will cut out traditional parts makers in order to fund a software development push that will involve hiring thousands of coders to build an operating system that rivals Tesla’s.

The Mercedes-Benz owner would buy fewer electronic components and “replace supplier development costs with personnel, building and computing costs”, Ola Kallenius, the company’s chief executive, told the Financial Times.

“Down the road, once we have gotten farther in this endeavour, I believe we could actually operate at a lower fixed cost level,” the Swedish boss added.

We will pay less money to suppliers and then employ people in other places.

The German group, which is in the middle of a painful restructuring as it struggles to pay for a late foray into electric vehicles, wants to own more of the complex technology that powers modern cars.

“We want to have one comprehensive operating system that goes from our

Read More

China new energy shares, Apple suppliers lead gains as U.S. election result awaited

SHANGHAI/HONG KONG (Reuters) – China’s new energy shares and Apple suppliers led the gains in the A-share market on Thursday, while defence companies lost ground, as early returns from the U.S. election pointed to a win for Democratic challenger Joe Biden.

While analysts expect little change in U.S. policy toward China whatever the outcome, a Biden administration is expected to bring a more nuanced, multilateral approach to trade and a less hawkish foreign policy toward developments in the Taiwan Strait.

Democrat Joe Biden on Wednesday predicted a U.S. election win over President Donald Trump after pivotal victories in Michigan and Wisconsin, while the Republican incumbent sought to offset a narrowing path to re-election with lawsuits and demands for a recount.

APPLE SUPPLIERS

China’s Apple suppliers have been sensitive to the ups and downs in the Sino-U.S. trade war, reflecting concerns of possible Chinese restrictions on U.S. tech firms including the

Read More

Business Is Still Good for Skyworks, Cirrus and Other Mobile Chip Suppliers

A few days after Apple (AAPL) reported lower-than-expected iPhone sales for the months preceding its iPhone 12 launches, Skyworks (SWKS) , Cirrus Logic (CRUS) and Silicon Motion (SIMO)  provided reminders that business is still pretty good for most mobile chip suppliers.

All three companies comfortably beat their September quarter estimates and issued strong December quarter guidance, with Skyworks and Cirrus issuing sales guidance ranges that were more than $100 million above consensus estimates. Each company also indicated that (after falling sharply this spring) smartphone demand continues rebounding well ahead of the holiday season.

Moreover, in their own ways, Skyworks, Cirrus and Silicon Motion each provided examples of how technology transitions and rising silicon content within smartphones are helping various mobile chip suppliers grow their top lines at a faster rate than smartphone unit sales.

Skyworks, not surprisingly, reiterated that the demanding RF front-end needs of 5G phones are boosting its

Read More

Earnings Season Has Mostly Looked Good for Chip Suppliers

Outside of one major chip company and one or two end-markets, earnings season has mostly yielded good news from chip suppliers.

Intel (INTC) , as many readers probably know, saw another post-earnings plunge after reporting major near-term pressures for its server CPU division amid both tougher competition from AMD  (AMD) and soft enterprise server demand. And there have also been some other firms, such as Seagate  (STX) and Texas Instruments (TXN) , that have reported seeing weak demand from enterprise hardware clients.

But otherwise, the disclosures and commentary shared by chip suppliers over the last three weeks has been pretty favorable. Here’s a quick recap:

  • Firms such as TI, Intel, STMicroelectronics (STM) and NXP Semiconductors (NXPI) have reported major Q3 rebounds for their automotive chip sales, thanks to both the end of production halts and improving consumer car demand.
  • Intel, AMD, TI, Western Digital  (WDC) and others have indicated PC
Read More