Semiconductors

Japan’s Nidec to Streamline Chip Purchases Amid Supply Woes

 

Japanese electric motor maker Nidec Corp said it plans to streamline group semiconductor purchases into a single procurement unit to cement its relationship with chip makers and ensure the sourcing of key components amid a supply crunch.

“The chip industry environment is more uncertain than it has ever been,” said Ryuji Omura, deputy chief technology officer of Nidec, makes motors for electric vehicles, household appliances and other products.

The company’s decision to centralize procurement is a sign that chip shortages, which have affected automakers in particular, may persist and are forcing companies to implement more aggressive measures to ensure they have enough components to meet demand for their products and devices.

Toyota Motor Corp, the world’s biggest carmaker by volume, cut its global production plan this month by 100,000 vehicles because of chip shortages and other pandemic-related disruptions.

Denso Corp, one of Toyota’s key parts suppliers, in February agreed to buy a 10% stake in a semiconductor plant being built in Japan by Taiwan Semiconductor Manufacturing Co to help secure supply of microcontroller chips.

Omura said that, as part of its “make or buy” procurement strategy, Nidec would also work more closely with suppliers in chip design and production. He spoke during a presentation on the company’s new chip strategy.

The company is expanding production of energy saving e-axle electric-vehicle motors in a bid to capture as much as 45% of the expanding global market by 2030.

 

  • Reuters with additional editing by Sean OMeara

 

 

ALSO READ:

 

Taiwan Tech Firms Step Up Cooperation in Japan – Nikkei

 

Japan’s Factory Output Dips More Than Expected as Risks Emerge

 

China faces challenge as Europe energises EV market

 

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

Recent Posts

Australia Plans Car Emission Rules to Boost EV Sales

Only 2% of cars sold in Australia are electric, compared with 15% in Britain and…

2 hours ago

Huawei Secures $100 Million Solomon Islands Deal – The Age

The deal to build 161 mobile phone towers across the Solomons Islands will be financed…

2 hours ago

UK Blocks Hong Kong Takeover of Chip Parts Firm – Guardian

The decision to stop the buyout is the UK's latest move to protect its technological…

3 hours ago

Taiwan Says It’s Yet to be Told of Asian Chipmakers Meeting

The meeting comes on the heels of a new US CHIPS Act that includes $52…

3 hours ago

Samsung Plans $15bn Spending at New Chip Research Centre

The world's largest memory chipmaker said plans to invest about $15 billion in the centre…

5 hours ago

China Reassures Battered Tech Firms, Wants ‘Can-Do’ Relations

The Cyberspace Administration of China also said it supports overseas listings, and that the aim…

6 hours ago