Honda will suspend production at several sites in Japan on January 5 and 6, with reduced operations continuing until January 9. Estimates indicate the Suzuka and Saitama plants, which produce vehicles mainly for the domestic market, could be affected. Separately, three Honda factories in China will close from December 29 through January 2.
The stoppages stem from shortages of legacy chips supplied by Nexperia. This company ranks among the world’s largest producers of legacy semiconductors, though it does not make advanced chips like those from TSMC or Samsung. Nexperia’s low-cost parts appear in essential vehicle systems, including power steering and automatic windows.
The supply issues trace back to mid-October, when the Dutch government seized control of Nexperia from its Chinese owner, Wingtech. Officials cited concerns over illegal technology transfers from the Netherlands unit to the China-based parent. Beijing responded by blocking exports of certain Nexperia products, disrupting the global automotive supply chain.
Reports suggest Washington influenced the takeover. Wingtech joined the U.S. entity list in 2024, restricting American dealings with the firm.
The fallout has rippled through the auto sector. In late October, Volkswagen and BMW reduced production. Japanese carmakers warned of months-long delays in securing Nexperia components or alternatives. By mid-November, manufacturers continued to highlight risks of an automotive chip shortage.
Recent progress includes China’s approval for Nexperia to resume exports, following discussions between Chinese President Xi Jinping and U.S. President Donald Trump. The Dutch government stated it would return control of Nexperia once shipments from its China unit restart and financial problems are addressed.
Even with these advances, unresolved matters persist, and the automotive chip supply chain faces ongoing effects from the Nexperia dispute.
