Honda extends China production halt over chip shortage

Honda Motor will extend a production suspension at three car plants in China for two more weeks due to a semiconductor shortage.

The factories, operated jointly with Guangzhou Automobile Group, were originally scheduled to resume on January 5, but will now restart on January 19, a spokesperson said.

Recent delays in chip shipments from Nexperia, a Dutch subsidiary of China’s Wingtech, have caused supply issues for several automakers, though Honda did not directly cite Nexperia for the latest disruption.

Honda also reduced or halted production at its North American facilities from late October to November 2025 because of similar chip shortages.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

GAC Honda runs about 600,000 units a year, so two weeks idle cuts roughly 23,000 vehicles from China output

Two legacy GAC Honda sites had a combined 480,000 units of capacity as of 2011 1, and the new Development District NEV Factory adds 120,000 a year 2, which brings the three sites to about 600,000.
The two older plants likely split the 480,000 figure at roughly 240,000 each, while the NEV factory contributes 120,000 2.
A two week halt erases about 23,000 vehicles from output based on 600,000 ÷ 52 weeks × 2, which adds to Honda’s 30.7% year over year sales slide in China through November 2024 2.

Suppliers of discrete parts (makers of basic components such as diodes and transistors) with auto qualifications can challenge Nexperia’s 40% share in transistors and diodes

Nexperia holds about 40% of basic transistors and diodes 3, so qualified rivals have an opening as automakers seek backups to keep lines running.
Chip makers with Automotive Electronics Council (AEC) Q100 or Q101 can pitch OEMs such as Honda, Volkswagen, or Mercedes-Benz. These buyers are reviewing replacements 3 while hearing warnings that parts on hand may cover only several weeks 4.
Supply chain risk software providers can work with automaker purchasing teams that are adding buffer stock and supplier diversification 5. This shift follows ongoing swings in discrete part supply.