Toyota Sees No Immediate Chip Shortage Despite Nexperia Limits

Toyota does not face an immediate shortage of semiconductors despite recent Chinese export restrictions on chipmaker Nexperia, though the automaker remains vigilant about potential production risks, said President and CEO Koji Sato. “I do think there is some risk, but it is not like we are facing shortages tomorrow,” Sato told reporters during the Japan Mobility Show in Tokyo.

The remarks come amid a new disruption in global semiconductor supply chains following the Dutch government’s seizure of Nexperia in September under national security laws. The Netherlands expressed concern that the company’s Chinese parent, Wingtech Technologies, could transfer intellectual property to another subsidiary. In response, China halted exports from all Nexperia factories on its territory, heightening trade tensions that threaten production across the automotive sector.

Nexperia, which produces more than 100 billion semiconductor components annually, suspended shipments to its own Chinese facility in Dongguan, Guangdong province, citing a “direct consequence of the local management’s recent failure to comply with the agreed contractual payment terms,” according to interim CEO Stefan Tilger. The company said it aims to de-escalate the situation and resume operations once payments are settled.

The supply disruption has raised concerns among global automakers. The German Association of the Automotive Industry (VDA) warned of “significant production restrictions in the near future, and possibly even production stoppages” if the issue persists. The European Commission has also engaged with Chinese officials and Nexperia leadership to mitigate the trade impasse.

Nissan said it has sufficient chip inventory to maintain operations “until the first week of November,” while Honda suspended production at a Mexican plant due to supply constraints. Mercedes-Benz reported being “covered in the short term,” and Volkswagen cautioned that unstable chip supplies could threaten its annual profit targets.