Honda Semiconductor Supply Chain 2026: Diversifying to Cut China Risk
Honda is diversifying its semiconductor supply chain to reduce China dependency after losing hundreds of millions in profit. New partnerships include Japan's Rohm.
A single chip shortage cost them hundreds of millions of dollars. Now, Honda is rewriting its supply chain playbook. The Japanese automaker is aggressively diversifying its semiconductor procurement to buffer itself against geopolitical volatility and manufacturing bottlenecks in China.
Honda Semiconductor Supply Chain 2026: The Shift Toward Resilience
According to Nikkei, Honda has secured new procurement agreements with suppliers inside and outside Japan, including the domestic giant Rohm. This strategic pivot follows a disastrous period late last year when supply gaps led to massive operating profit losses. The crisis surrounding Nexperia, a Dutch-based chipmaker with Chinese ownership, served as a wake-up call for the entire industry regarding the risks of concentrated supply lines.
Escaping the 'No. 4' Trap
The chip crunch didn't just hurt the bottom line; it threatened Honda's market standing. At one point, production delays risked pushing the company down to fourth place among Japanese automakers. With new EV models like the P7 hitting the market, ensuring a steady flow of silicon is no longer just a procurement task—it's a survival strategy against Trump tariffs and domestic Chinese competition.
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