Nissan faces renewed production cuts from chip shortages

November 19, 2025 /SemiMedia/ — Nissan Motor is preparing another production cut at its Kyushu plant next week as the impact of a chip shortage linked to Nexperia continues to disrupt its domestic operations, according to people familiar with the matter. The reduction, estimated at around 1,400 vehicles, follows a previous cut of 900 units and will affect models including the Serena and the locally marketed X-Trail.

One of the sources said the Kyushu facility briefly resumed normal operations earlier this week but will scale back output again starting November 24. Nissan’s Oppama plant near Tokyo is also expected to produce fewer Note compact cars for a second consecutive week, and December production plans at both factories remain under review.

Broader supply-chain strain weighs on Japan’s auto sector

In a statement, Nissan said it is working to minimize the effect on customer deliveries once supply stabilizes, adding that it has introduced operational adjustments to manage risks. The company noted that plans could change if replacement components become available.

Japan’s auto sector has been under pressure from the semiconductor bottleneck, with Nissan reporting a 16.5% drop in domestic retail sales in the first half of the year. Supply uncertainty has been cited as a key factor weighing on performance.

Nexperia dispute adds complexity to global automotive supply

The disruption has been felt across the industry. Several global automakers have reduced or halted output in recent weeks, though some have managed to secure alternative chip sources. Honda said it will return its North American plants to normal operations after receiving additional general-purpose semiconductors.

Nexperia said last week that it will continue offering alternative sourcing options to customers as it deals with the regulatory dispute between the Dutch government and China. The Netherlands placed the company under government oversight in September citing security concerns, prompting temporary export restrictions on its China-based facilities.