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Honda Pauses Production in Japan and China Over Chip Shortages

Industry reports tie the legacy-chip shortfall to disruption at Nexperia after a Dutch seizure.

Overview

  • Honda will halt output at all three Guangqi Honda plants in China from December 29 to January 2 and stop domestic production on January 5–6.
  • The company did not specify the Japanese sites, with Tom’s Hardware reporting reduced operations through January 9 and estimates pointing to Suzuka and Saitama.
  • Honda cited semiconductor shortages as the reason, highlighting persistent constraints on lower-end chips used in key vehicle systems.
  • The pauses follow guidance that production would normalize from late November, indicating unresolved supply issues and potential inventory alignment reported by market watchers.
  • Honda shares fell about 1.5% in Tokyo trading after the announcements, reflecting investor concern over near-term output and sales momentum.