Honda continues to wrestle with a semiconductor scarcity that has but to completely stabilise. By Stewart Burnett
Honda has confirmed it would prolong a manufacturing suspension at three Chinese language factories by two weeks on account of ongoing semiconductor shortages, with operations now set to renew on 19 January as an alternative of the initially deliberate 6 January restart date. The vegetation, operated by the GAC-Honda three way partnership, had been shut down on 29 December earlier than the extension was introduced.
The Japanese automaker—the nation’s second-largest—attributed the disruption to delayed chip shipments amid the continued fallout relating to semiconductor agency Nexperia. The corporate was seized by the Dutch authorities in late 2025 on account of issues its expertise could also be shared with Chinese language father or mother firm Wingtech.
The prolonged shutdown impacts amenities that produced roughly 816,597 autos in 2024, equal to roughly 22% of Honda’s international manufacturing output. China additionally served as a significant gross sales marketplace for the corporate throughout the identical interval, with deliveries exceeding 850,000 models, highlighting the nation’s significance to Honda’s total enterprise operations.
Honda additionally suspended operations at two Japanese vegetation—the Suzuka manufacturing unit in Mie prefecture and the Yorii facility in Saitama prefecture—on 5 and 6 January as a part of broader supply-related changes. The automaker lately decreased its international gross sales forecast from 3.62 million to three.34 million autos and expects semiconductor shortages to cut back working revenue by roughly US$960m for the fiscal 12 months ending March 2026. The most recent manufacturing cuts haven’t but been included into earnings projections.
Numerous automakers and Tier 1 suppliers have been pressured to cut back output in current months within the wake of the Nexperia seizure. Ensuing chip shortages have affected Honda’s manufacturing operations past China, forcing manufacturing cuts at North American amenities from late October by November. Past Honda, compatriot automaker Nissan was additionally pressured to modify its manufacturing forecast for the Rogue. Main suppliers like Bosch and ZF have additionally confronted disruptions—the previous furloughing staff, and the latter coming shut—which in flip impacted European OEMs together with Mercedes-Benz, Stellantis, and BMW.
