Honda Prolongs China Plant Shutdowns Due to Chip Shortage

• The production halt is linked to delays in chip shipments from Nexperia, a Dutch subsidiary of Chinese firm Wingtech, which has forced multiple automakers to reduce output in recent months
• Honda previously halted or reduced production at North American plants from late October through November 2024 due to similar chip shortages
• The extended shutdown highlights Honda's continued vulnerability to semiconductor supply chain disruptions despite industry-wide efforts to stabilize component availability

Summary

Honda Motor is extending production shutdowns at three Chinese manufacturing plants by two weeks due to ongoing semiconductor shortages, underscoring continued supply chain vulnerabilities for Japan's second-largest automaker.

Key Details

• Timeline: The factories, initially scheduled to restart January 5, will now resume operations on January 19, 2026
• Location: Three plants operated jointly with Guangzhou Automobile Group in China
• Duration: Two-week extension beyond the original restart date

Supply Chain Issues

The disruption stems from delays in chip shipments from Nexperia, a Dutch semiconductor company owned by Chinese firm Wingtech. While Honda did not directly confirm Nexperia as the cause of this specific delay, the supplier has forced multiple automakers to reduce output in recent months.

This is not an isolated incident for Honda. The company also halted or reduced production at North American plants from late October through November 2025 due to similar chip shortages.

Market Implications

• Demonstrates persistent semiconductor supply chain fragility affecting the global automotive sector
• Highlights Honda's particular vulnerability to component supply disruptions across multiple regions
• Reflects broader industry challenges as automakers remain dependent on complex, international semiconductor supply networks
• May impact Honda's production targets and revenue guidance for the fiscal period
• Suggests ongoing geopolitical and supply chain risks in the automotive manufacturing sector, particularly involving China-linked suppliers

The extended shutdown reinforces concerns about semiconductor availability remaining a constraint for automotive production despite industry-wide efforts to stabilize supply chains over the past several years.