Toyota Unscathed by Nexperia Chip Export Ban as Global Automakers Face Production Crunch

Toyota CEO Koji Sato confirmed today that the company faces no immediate risk of semiconductor shortage following China's export restrictions on Nexperia, a semiconductor manufacturer owned by China's Wingtech Technology. This announcement comes amid escalating tensions between the Netherlands and China over control of Nexperia B.V., with the Dutch government invoking a 1952 law to seize the company on national grounds, barring changes to management, assets, or IP for one year.

In retaliation, China imposed an export ban on certain Nexperia products and components on October 4, halting shipments from its Chinese subsidiaries and subcontractors. While Toyota remains unaffected, other automakers are grappling with severe shortages. Nissan Motor Co. revealed it has a supply that could last only until the first week of November, and Honda reduced productivity by half at its assembly plant in Alliston, Ontario, with Unifor Local 1285 president Vito Beato predicting continued slowdowns through next Wednesday.

Sato emphasized Toyota's efforts to standardize traditional chips to avoid dependencies on customized semiconductors, a move aimed at mitigating crises like the COVID-19 pandemic shortages. He also reaffirmed plans to proceed with the $108.10 per share buyout of Toyota Industries, despite investor concerns about undervaluation. Globally, the chip crisis is worsening; in Germany, 10.4% of companies in electronic and optical sectors reported raw material shortages in October, up from 7% in July, highlighting broader supply chain vulnerabilities.

Analysts warn that Nexperia could end up on a trade blacklist due to national security concerns, as geopolitical tensions between the U.S., China, and the Netherlands intensify. Toyota's stock price rose 1.24% to 3185 JPY following the announcement, with a year-to-date gain above 5%.