Honda announced production suspensions at several Japanese sites on January 5 and 6, with reduced operations until January 9, due to a shortage of legacy chips from Nexperia, stemming from a Dutch government seizure of the company from its Chinese owner Wingtech over illegal technology transfer concerns.
The Japanese automaker specified that three factories in China would close from December 29 through January 2. Estimates indicate that Honda’s Suzuka and Saitama plants, which mainly produce vehicles for the domestic Japanese market, could be among the affected facilities in Japan.
Operational reductions or halts result directly from insufficient supplies of legacy chips produced by Nexperia. This company ranks as one of the largest manufacturers of legacy semiconductors worldwide, distinct from advanced producers such as TSMC or Samsung.
These legacy chips consist of inexpensive components integral to every vehicle. They function in critical systems including power steering and automatic windows, making their scarcity a direct threat to automotive assembly lines.
The disruption originated in mid-October when the Dutch government took control of Nexperia from Wingtech, its China-based parent company. Authorities cited concerns over illegal transfers of technology from the Netherlands operations to the Chinese entity.
Beijing responded by imposing export bans on specific Nexperia products. This action triggered a broader global automotive chip shortage, as Nexperia’s components became unavailable, affecting supply chains dependent on these parts.
Reports also surfaced that Washington influenced the seizure. Wingtech appeared on the U.S. entity list in 2024, heightening scrutiny on the Chinese firm’s activities.
The Japanese automotive sector issued warnings about prolonged disruptions. Industry representatives noted that securing renewed components from Nexperia or alternative suppliers could require months.
In late October, Volkswagen and BMW initiated production slowdowns. By mid-November, car manufacturers across the sector continued to highlight the persistent automotive chip shortage.
Progress occurred when China permitted Nexperia to resume exports. This decision followed discussions between Chinese President Xi Jinping and U.S. President Donald Trump.
The Dutch government expressed willingness to return control of Nexperia to its prior ownership. This step depends on the restart of chip shipments from the company’s China unit and resolution of its financial challenges.
Even with these measures, certain matters persist without resolution. The automotive industry’s chip supply chain endures ongoing effects from the Nexperia dispute.
