Auto & Heavy Industry Outlook

OEM verticalization/chip self-reliance & retrenchment/geo-threats/supply resilience incl REE

OEM verticalization/chip self-reliance & retrenchment/geo-threats/supply resilience incl REE

Key Questions

What is causing the helium crisis in chips?

Helium outage of 27-30% drives +40-100% prices, impacting TSMC/Samsung/memory/AI RAM. This tightens global chip supply chains. REE shortages like Nd/Dy halt Toyota production.

How are MI supplier grants supporting transitions?

MI Tier1 grants extended to April 28 for EV pivot/retooling amid verticalization. Prima Power aids sheet metal efficiency for Tier1/heavy equip. This builds supply resilience.

What role does AI play in supply chains?

Supply chain AI spending surges from $2B to $53B by 2030; AI power/supply AI grows. TSMC's advanced chips power global AI. V2X/BGE VPP integrate.

How are tariffs and geo-threats affecting OEMs?

25% tariffs drive reshoring like Tesla-LG/FANUC; Volvo-POSCO steels enhance resilience. Price wars/vertical integration reshape China auto. Aptiv acq aids amid costs.

What is the SiC market projection?

SiC market to $30B by 2034 amid WBG chips/800V systems tipping point. REE strain semiconductors/auto demand. Electric vehicle motors to $34.5B by 2035.

How is Aptiv navigating rising costs?

Aptiv benefits from electrification/connectivity via investments/acquisitions. Zacks highlights BorgWarner/Siemens/Wabtec. SMX's DMPP enables material traceability.

What reshoring efforts involve batteries?

$4.3B battery deal pushes defense shift/reshoring manufacturing. Rare earth/auto demand strains supply. Permanent magnet motors market grows to 2035.

Why are 800V systems pivotal?

800V with WBG chips like SiC are the ultimate tipping point for efficiency. Verticalization/chip self-reliance counter geo-threats/REE risks. Supplier conversions extended.

Helium crisis 27-30% outage/+40-100% prices TSMC/Samsung/memory/AI RAMageddon; REE Nd/Dy/Toyota halt; SiC $30B'34; V2X/BGE VPP; Aptiv acq; AI power/supply AI; MI Tier1 grants EV pivot; Prima Power sheet metal efficiency for Tier1/heavy; Tesla-LG reshoring/FANUC; tariffs 25%; Volvo-POSCO steels.

Sources (50)
Updated Apr 8, 2026