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Semiconductor Shortage Disrupts Global Automakers, Honda Announces Production Cuts
10 Sep 2025 News
In 2025, global automotive chip shortages (due to Nexperia's supply disruption) force Honda production cuts, highlighting supply chain risks and creating substitution opportunities for domestic chips.
The lingering global automotive chip shortage has forced major automakers to adjust production plans, highlighting the strategic importance of supply chain autonomy and creating opportunities for domestic chip substitutes. Honda Motor Co. recently announced plans to suspend or reduce production at its factories in Japan and China from late December to early January due to semiconductor shortages, further exacerbating concerns about the stability of the global automotive supply chain.
According to Honda's statement, its joint venture factory with GAC Group will suspend production for 5 days starting December 29, while its Saitama and Suzuka factories in Japan will halt production for 2 days in January and operate below capacity for the following 3 days. Although North American factories have resumed operations, their production systems remain fragile, and future output will be dynamically adjusted based on chip supply. The shortage was triggered by Nexperia's supply disruption: after the Dutch government froze Nexperia's operations in late September, its Dutch headquarters cut off wafer supply to Nexperia China, affecting the global supply of automotive discrete semiconductors, in which Nexperia holds a 40% global market share.
These semiconductors are core components of electric power steering systems and power control units, adapting to most global vehicle models. Industry analysts point out that the shortage has highlighted the urgency of supply chain diversification. Chinese securities firms believe that the launch of multiple domestic automotive chips at the 2025 Shanghai Auto Show marks key breakthroughs in vehicle certification and performance indicators, ushering in a golden window for the large-scale landing of domestic chips. Enterprises with automotive-grade certification and mass production capabilities are expected to benefit first as automakers prioritize supply chain security.
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