Honda Diversifies Semiconductor Supply Chain... Reduces Dependence on China After Nexperia Disruption

According to a report by the Nihon Keizai Shimbun (Nikkei) on January 11, Japanese automaker Honda is diversifying its semiconductor supply chain.

Honda.

Honda plans to procure semiconductors from various domestic and international companies in Japan and gradually install them in its vehicles starting from mid-January.

Previously, Honda relied solely on Nexperia for certain semiconductors. When supply disruptions occurred due to conflicts between China and the Netherlands over management control of Nexperia, the company was forced to temporarily halt factory operations or reduce production volumes.

Nexperia is a global leader in automotive semiconductors and became a Chinese company after being acquired by Chinese semiconductor firm Wingtech in 2019.

Nikkei stated, "This is the first time Japanese automakers have begun diversifying semiconductor procurement following a temporary suspension of shipments from Nexperia," and noted that other companies such as Nissan are also showing a trend toward reducing their dependence on China.