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Supply Chain

Honda follows Apple model on EVs, working directly with suppliers

New supply chain puts emphasis on batteries, semiconductors

Honda CEO Toshihiro Mibe is presiding over a major shift in Honda's EV supply chain. (Photo by Tetsuya Kitayama) 

TOKYO -- Honda is ramping up investment in domestic battery production and moving to partner directly with Taiwan Semiconductor Manufacturing Co. (TSMC) on procurement, part of a supply chain overhaul it hopes will supercharge its pivot to electric vehicles.

The automaker's new supply chain structure echoes that of tech giant Apple, which works directly with parts suppliers on development and production in order to control quality and bring down costs.

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