The italicized text is taken from Vishay Q2 2024 earnings call transcript that took place on Aug 7, 2024.
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“Based on input from our customers in Europe and the Americas, we’re seeing flat automotive demand tied to persistent high interest rates, driving consumers to look towards purchasing less expensive compact cars, containing less electronic content.”
[Q] Are there indications that the worst of the demand decline has passed now that the Fed, ECB, and China have started reducing interest rates? -
“Even though sales were lower, design activity continued on all automotive electronics, including BMS, ADAS and with the increasing discussion around AI chipsets. We also stepped up our engagement with automotive OEMs and Tier 1s.”
[Q] Could you provide some insights into the trend regarding the level of design activity for automotive electronics related to the customer programs planned for launches in 2026 and 2027 and beyond? -
“We have decided to guide it flat even though we see scheduling agreements with increasing demand in Q3. We saw what happened in Q2. We had Q2 with a positive move from auto in their schedule agreements and they readjusted. So the week-by-week demand pulls that are forecasted would show a positive Q3 over Q2 for auto. But at this point, we’ve decided to guide it flat, fewer workdays in Q3 seasonal holidays in Europe, seeing automotive car count declining a bit. We decided to go flat even though the signals from the auto customers are a bit up.”
[Q] What is our guidance for the shunt business segment in the near to mid term? Are we seeing an increase in orders? Or the continued softness sideways market for another quarter or two longer?
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