Major Japanese automakers and suppliers have reported limited disruptions from the recent halt in semiconductor exports by Nexperia, a key chipmaker, as industry players emphasize sufficient inventory and alternative sourcing strategies to maintain stable production.
Denso leverages inventory, alternative sources
Denso, a leading supplier to Toyota Motor Corporation, indicated that it had anticipated the supply interruption and maintained ample stockpiles to avoid production stoppages. According to Reuters and Nikkan Jidosha Shimbun, on October 31, 2025, Denso executive vice president Yasushi Matsui said that shipment disruptions from Nexperia did not materially affect operations. He noted that 99% of the Nexperia chips Denso used were general-purpose products replaced through other suppliers, while the remaining 1% were undergoing design adjustments verified with customers to enable substitution.
Despite the supply issues from Nexperia, Denso affirmed that delivery schedules remain on track but stressed the importance of coordinated efforts across the entire supply chain. Matsui emphasized ongoing collaboration with multiple component suppliers to share alternative resources and enhance inventory management. The company excluded the incident from fiscal year 2025 financial forecasts, citing a low likelihood of any significant decline in vehicle sales due to these supply constraints.
Toyota network stays resilient
Other members of Toyota's supply network also reported minimal operational impact. Toyota Boshoku confirmed the use of some Nexperia parts in overseas products but highlighted sufficient inventory and the initiation of alternative procurement plans. Toyoda Gosei stated that the company's minimal use of Nexperia chips helped avoid production disruptions, though it acknowledged challenges faced by some automakers requiring temporary line suspensions. Aisin Group reported a limited short-term impact but warned of needing risk diversification measures if supply issues continue.
Diversification proves crucial
According to Nikkei Asia, this disruption contrasts with the acute global chip shortage during the 2020 pandemic, as affected components were mostly general-purpose and alternative sources were relatively abundant. An analysis by S&P Global Ratings found that automakers with diversified supply chains experienced milder repercussions than those heavily dependent on single suppliers. Honda Motor Co. and certain European manufacturers faced greater operational challenges, while General Motors and Tesla Inc. were less impacted.
A senior executive from a major Japanese parts manufacturer explained that the degree of disruption correlates with reliance on single-source suppliers. Companies like GM, which have long employed diversified procurement strategies to mitigate risks from geopolitical factors and supply interruptions, maintained more stable supply chain operations during the recent Nexperia export halt.
Overall, the current semiconductor export disruption from Nexperia has not escalated into a widespread automotive chip crisis, as leading Japanese companies and their suppliers appear to have managed the situation through prior preparation, inventory buffers, and alternative sourcing arrangements. Nonetheless, industry executives continue to monitor developments carefully to prevent potential future supply instability.
Article edited by Jerry Chen
