(CTN News) – In an effort to ensure a steady supply of semiconductors, Honda announced on Wednesday that it has signed a strategic collaboration agreement with Taiwan Semiconductor Manufacturing Co. (TSMC).
Despite easing, the pandemic’s tight global chip and components supply has made it difficult for Japanese automakers to recover fully.
Honda will build direct relationships with chip producers for the long-term stable supply of chips
For a long-term reliable supply of chips, Honda will establish direct ties with chip producers, according to Chief Executive Toshihiro Mibe, who also provided an update on the automaker’s business strategy.
Mibe stated that Honda would “work closely with Tier 1 suppliers and semiconductor makers and move forward with drastic steps,” adding that the company had established a fundamental understanding regarding strategic cooperation with TSMC.
Honda Aim Of Making EVs And Fuel Cells Represent 100% Of Its Vehicle Sales By 2040
Honda and chip manufacturers likely didn’t have many direct conversations with automakers in the past, he added.
According to Chief Operating Officer Shinji Aoyama, the partnership with TSMC was expected to begin having an effect on the business in the 2025 fiscal year.
With a focus on securing integrated circuits and other parts, he added, the agreement included information sharing concerning production and parts supply.
As part of its new “electric and electronic” design platform, Honda also announced plans to introduce a mid- to large-size electric vehicle (EV) in the United States in 2025.
By 2040, it remained committed to selling only electric and fuel cell vehicles, and it announced plans to launch four new EV models in Japan by 2026.
According to Mibe, the corporation is thinking about increasing revenue from EVs by charging for software and digital services.
Mibe remarked, without going into any detail, “I don’t think things are as simple as they used to be where we can just increase the number of units to grow profits.”