Honda Halts Vehicle Production as Chip Shortages Hit Power Windows and Steering Systems

Honda has announced a temporary production stoppage at several of its plants in Japan on January 5–6, followed by reduced operations through January 9. The company did not specify which facilities are affected, but industry sources suggest the impact likely includes the Suzuka and Saitama plants, which primarily build vehicles for the domestic market. In addition, Honda plans to shut down three factories in China from December 29 through January 2.

According to Digitimes, the disruptions are tied to a shortage of semiconductors previously supplied by Nexperia. These are not cutting-edge chips like those produced by TSMC or Samsung, but they are essential for modern vehicles, powering systems such as electric power steering and power window controls.

The situation escalated in mid-October, when Dutch authorities seized control of Nexperia from its Chinese parent company, Wingtech, amid concerns over the illegal transfer of sensitive technologies. In response, China imposed export restrictions on certain Nexperia products, disrupting global automotive supply chains. Industry warnings soon followed: Volkswagen and BMW reported slower production in late October, and by mid-November, fresh signs of chip shortages had emerged across the auto sector.

There have been some recent signs of relief. China allowed Nexperia to resume exports following talks between Chinese President Xi Jinping and U.S. President Donald Trump, while Dutch officials signaled they may relinquish control of the company if supply flows are restored and outstanding financial issues are resolved. Still, the problem appears far from fully resolved, with its effects continuing to ripple through the automotive industry.