Japanese automakers are teaming up with chipmakers to keep semiconductor supply flowing amid mounting risks from geopolitical tensions and natural disasters.
The details: The push, led by Toyota, Honda, and the Japan Auto Parts Industries Association, is expected to include around 20 suppliers, most notably Japan's Renesas Electronics and Rohm, as well as Germany's Infineon Technologies, reports Nikkei.
The collaborative effort, which excludes Chinese chipmakers, is expected to cover 80%–90% of the semiconductors used by Japanese automakers.
Chipmakers will register data about product specs, production start dates, and origins to make it easier to spot potential supply issues early.
Blockchain tech will be used to prevent information leaks to other automakers, with non-Japanese carmakers able to use the system upon request.
The Automotive and Battery Traceability Center in Tokyo will handle operations for the collaboration.
Why it matters: A more resilient chip supply means fewer surprise production cuts, fewer “built but waiting on parts” units, and more stable availability of feature-rich trims. If Japanese OEMs can avoid the worst of future shortages, their stores may enjoy more reliable inventory, less order chaos, and a stronger value proposition versus brands that remain more exposed to chip shocks.
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Between the lines: Semiconductor shortages have become a major concern for automakers that rely on chips for everything from navigation systems to motors.
China-based Nexperia’s move last year to suspend semiconductor shipments, amid a tug-of-war with the Dutch government, forced Honda and Nissan to cut production.
Honda projects that the chip shortage will gut its operating profit by 150 billion yen (~$950 million) in the year ending 2026, while it and other automakers scramble for alternative suppliers.
The Nexperia crisis has led some carmakers to buy wafers (essentially the building blocks for semiconductors) directly from the chipmaker’s European operation and ship them to the Chinese unit themselves for assembly.
The industry’s shift to autonomous driving and AI is expected to push chip demand even higher, with the global market for automotive semiconductors projected to reach roughly $159.4 billion in 2035, up 80% from 2025.
Bottom line: Chip planning is quickly becoming as strategic as engine and platform planning. Dealers for Japanese brands that lock in more secure semiconductor supply are likely to see fewer production disruptions, more consistent tech content, and a competitive edge when other OEMs are still juggling shortages and de-contented builds.
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