A supply crisis involving Nexperia, a leading global automotive-grade discrete device supplier (headquartered in the Netherlands and controlled by China’s Wingtech Technology), has inflicted heavy losses on Honda Motor. Due to geopolitical tensions, Nexperia suspended shipments, severely disrupting Honda’s global production capacity.

From October to November last year, Honda was forced to cut output at its U.S. plants. In China, GAC Honda’s three factories halted operations for three days, while Dongfeng Honda adjusted production, with subsequent stoppages extending to two weeks. In Japan, key plants also partially shut down or reduced output by 30%, extending delivery times for popular models from one month to two months. The crisis is projected to reduce Honda’s operating profit by 150 billion yen (approx. $950 million), with global sales targets lowered by nearly 8%.

As the first Japanese automaker to actively pursue chip supply diversification, Honda has begun restructuring its supply chain. Starting this month, vehicles in mass production will use chips from new suppliers, with Japanese semiconductor giant ROHM as a core partner. ROHM’s end-to-end capabilities—from design to production—through a “local front-end + Southeast Asia back-end” model will help Honda reduce dependency risks. Additionally, Honda plans to invest in Japanese chipmaker Rapidus and deepen strategic cooperation with TSMC to ensure long-term chip supply stability.

Although the specific dispute has been resolved, global automotive-grade chip supply remains tight, with many automakers still racing to replenish inventory. This crisis has exposed the industry’s vulnerability—“one missing chip can halt a production line”—accelerating efforts across the sector to build more resilient supply chains.

ICgoodFind Perspective: Honda’s strategic shift offers a reference for automakers optimizing supply chains, with automotive chip supply diversification set to become an industry trend.