Honda is suspending production at several Japanese sites on January 5 and 6, with reduced operations continuing until January 9, due to a shortage of legacy chips from Nexperia.
The shortage is affecting Honda’s Suzuka and Saitama plants, which primarily produce vehicles for the domestic market. Additionally, three Honda factories in China will be closed from December 29 through January 2.
The disruptions stem from a shortage of legacy chips supplied by Nexperia, a leading producer of legacy semiconductors used in essential vehicle systems such as power steering and automatic windows. The supply issues began in mid-October when the Dutch government seized control of Nexperia from its Chinese owner, Wingtech, citing concerns over illegal technology transfers.
Beijing responded by blocking exports of certain Nexperia products, disrupting the global automotive supply chain. Reports suggest that Washington influenced the takeover, as Wingtech was added to the U.S. entity list in 2024, restricting American dealings with the firm.
The fallout has had a ripple effect through the auto sector, with Volkswagen and BMW reducing production in late October. Japanese carmakers warned of months-long delays in securing Nexperia components or alternatives, and by mid-November, manufacturers were still highlighting the risks of an automotive chip shortage.
Recent developments include China’s approval for Nexperia to resume exports, following discussions between Chinese President Xi Jinping and U.S. President Donald Trump. The Dutch government has stated that it will return control of Nexperia once shipments from its China unit restart and financial problems are addressed.
Despite these advances, unresolved matters persist, and the automotive chip supply chain continues to face the ongoing effects of the Nexperia dispute.
