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Due to the semiconductor shortage, Honda’s three factories in China will halt operations and reduce production!
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Industry News
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Release time:
2025-12-18
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According to a Kyodo News report on December 17, Honda revealed on the 17th that, due to the semiconductor shortage, it plans to suspend or reduce vehicle production at its plants in Japan and China from late December through early January next year. Although North American plants, which previously experienced similar situations, have now resumed normal operations, the precarious state of the production system continues.
According to Honda, the joint venture plant with China's state-owned giant GAC Group will halt production for five days starting December 29. The Japanese plants will suspend operations for two days on January 5 and 6 next year, and production from January 7 to 9 will also fall below the original plan.
Honda has not disclosed the specific Japanese plants involved, but the Saitama and Suzuka plants are likely candidates. The full scale of the production adjustments remains unclear. Honda stated that future production levels will be determined based on factors such as the availability of semiconductors.
Honda suspended production at its Mexican plant in October and November, and its U.S. and Canadian plants were also forced to cut output, due to export controls imposed on AmSilicon, a global supplier of electronic components (headquartered in the Netherlands but controlled by Chinese investors). Honda did not specify whether the semiconductors affected by this shortage were products from AmSilicon.
Honda’s consolidated financial results forecast for the fiscal year ending March 2026, released in November, indicate that due to a semiconductor shortage resulting in lower-than-expected production, operating profit—the key indicator of the company’s core business performance—will decline by 150 billion yen (approximately RMB 6.8 billion).
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