Toyota Monitors Chip Supply Risks Amid China’s Export Ban on Nexperia

Toyota Motor Corp. has stated it is not facing any immediate chip shortages following China’s recent export restrictions involving Dutch chipmaker Nexperia. However, Chief Executive Koji Sato noted the company is closely monitoring potential risks that could affect production. Speaking at the Japan Mobility Show in Tokyo, Sato said, “There’s some risk, but it’s not like we’re facing shortages tomorrow.”

While the Nexperia export ban could eventually impact output, Toyota—the world’s largest automaker—does not anticipate a sudden supply crunch. The industry has been on alert as automakers worldwide scramble to secure semiconductor supplies and assess inventory levels amid growing concerns about a tightening chip market.

China’s decision to ban exports of Nexperia’s products came after the Dutch government seized control of the company last month over national security concerns tied to its Chinese parent, Wingtech. The U.S. has also flagged Wingtech as a potential technology transfer risk.

Sato added that Japanese automakers are working together to standardize legacy semiconductors, a strategy aimed at preventing the severe disruptions experienced during the pandemic when reliance on custom chips left manufacturers vulnerable. Meanwhile, Nissan recently said it has enough chip inventory to last until early November without disruption.

In separate comments, Sato confirmed that Toyota has no plans to revise the tender offer price for Toyota Industries as part of its ongoing buyout. The group plans to take Toyota Industries private through a holding company backed by Toyota Motor, Toyota Fudosan, and Chairman Akio Toyoda.

The 16,300 yen ($108.10) per share offer has faced criticism from investors who argue it undervalues the company. Sato emphasized that Toyota will maintain transparency throughout the process, ensuring that minority shareholders’ interests are respected while seeking broad stakeholder understanding.