Global Chip Shortage Persists as Honda Faces Production Hurdles

Honda has announced a temporary halt in production at several facilities in Japan from January 5-6, followed by reduced operations until January 9. The company did not specify which plants are affected; however, sources suggest that Suzuka and Saitama facilities, primarily focusing on the domestic market, may be involved. In addition, Honda plans to close three plants in China from December 29 to January 2.

According to Digitimes, these restrictions stem from a shortage of chips that Honda sourced from Nexperia. While these chips are not cutting-edge like those produced by TSMC or Samsung, they are crucial for vehicles, being used in systems such as power steering and power windows. The situation worsened mid-October when Dutch authorities seized Nexperia from its Chinese owner, Wingtech, amid suspicions of illegal technology transfers.

In response, China restricted the export of certain Nexperia products, negatively impacting global automotive supply chains. The industry warned of potential disruptions: Volkswagen and BMW reported production slowdowns at the end of October, and mid-November saw renewed reports of chip shortages in the automotive sector. Recently, there have been signs of improvement: China permitted Nexperia to resume exports after talks between Chinese President Xi Jinping and U.S. President Donald Trump, and Dutch authorities expressed willingness to relinquish control over the company, contingent on supply restoration and financial issues being resolved.

Nonetheless, the issue appears unresolved, with its impacts still felt across the automotive industry. As 2025 ends, experts indicate that supply chain volatility remains, with tensions between the Netherlands, China, and the semiconductor industry still palpable. Furthermore, the global automotive market is still recovering from the pandemic-induced disruptions, with some manufacturers turning to alternative suppliers to mitigate these ongoing challenges.