Honda Motors Form Strategic Partnership With Taiwan's TSMC To Source Semiconductors

Honda Motor Co. of Japan announced on Wednesday that it has signed a strategic collaboration agreement with Taiwan Semiconductor Manufacturing Co. (TSMC) as part of its efforts to secure a reliable supply of semiconductors.

Honda will establish direct partnerships with chip manufacturers to ensure a long-term stable supply of processors, said CEO Toshihiro Mibe at a news conference outlining the automaker's business plan.

"Honda will work closely with Tier 1 suppliers and semiconductor makers to take drastic steps," Mibe said, adding that the company had achieved a fundamental agreement on strategic partnership with TSMC.

According to chief operating officer Shinji Aoyama, the business hopes to reap the benefits of its partnership with TSMC beginning in the fiscal year 2025.

Honda also announced plans to launch four new electric vehicle (EV) models in Japan by 2026.

Honda Motor Co., Ltd., headquartered in Minato, Tokyo, Japan, is a Japanese public multinational conglomerate producer of vehicles, motorbikes, and power equipment.

Honda spent roughly 5.7% (US$6.8 billion) of its revenue on research & development in 2013. Honda was also the first Japanese carmaker to be a net exporter from the United States in 2013, exporting 108,705 Honda and Acura cars while importing only 88,357.