Automotive chip shortages force production halts at Honda

December 19, 2025 /SemiMedia/ — Honda Motor said it will halt and scale back production at several plants in Japan and overseas due to ongoing shortages of automotive semiconductors, keeping close watch on supply progress from key chipmakers such as Nexperia.

The automaker said its Suzuka and Yorii plants in Japan will suspend operations for two days on Jan. 5–6, 2026, and operate at reduced capacity from Jan. 7 to Jan. 9. Production plans beyond early January will be decided later, depending on parts availability.

Honda did not disclose the size of the output cuts, underlining persistent uncertainty surrounding the supply of automotive-grade chips, particularly power and discrete devices used across multiple vehicle platforms.

In its latest earnings report, Honda estimated that semiconductor shortages would reduce operating profit by about 150 billion yen in the fiscal year ending March 2026, while cutting North American vehicle sales by roughly 110,000 units.

The company has lowered its global four-wheel vehicle sales forecast for the current fiscal year to 3.34 million units from 3.62 million previously, representing a year-on-year decline of around 10%.

Honda has faced repeated production disruptions linked to chip shortages. In late October, it suspended output at its Celaya plant in central Mexico, which produces the HR-V model and has an annual capacity of about 200,000 vehicles, mainly for export to the United States. Some North American plants also implemented temporary output cuts.

H2: Nexperia emerges as a key supplier in vehicle production recovery

Honda previously said several North American facilities began returning to normal operations from late November after shipments from Nexperia started to resume. Industry sources said Nexperia, a major supplier of automotive-grade discrete components and power semiconductors, has become a critical variable in stabilizing vehicle production schedules.

However, industry executives cautioned that while shipments from suppliers such as Nexperia are improving, structural tightness in certain automotive semiconductor categories remains, suggesting a full recovery across the supply chain will take longer.