Honda strikes collaboration deal with TSMC for stable semiconductor supply

Japan's Honda on Wednesday unveiled it struck a strategic collaboration agreement with Taiwan Semiconductor Manufacturing Company (TSMC) as part of steps the company was taking to secure a stable supply of semiconductors.

Honda will build direct relationships with chip producers for the long-term stable supply of chips, CEO Toshihiro Mibe said at a news conference where he laid out thecarmaker's business strategy.

“Honda will work closely together with Tier 1 suppliers and semiconductor makers and move forward with drastic steps,” Mibe said, adding it had reached a basic agreement on strategic collaboration with TSMC.

The company expects to start seeing an impact from the tie-up with TSMC from the 2025 financial year, COO Shinji Aoyama said.

Honda also said it planned to introduce four new electric vehicle models in Japan by 2026.