Friday, December 19, 2025

Honda has announced that it will suspend production at several sites in Japan on January 5 and 6, with reduced operations until January 9., and close three factories in China from December 29 through January 2. Honda had to reduce or halt its operations because of the lack of supply of legacy chips

The trouble began in mid-October when the Dutch government seized it from Wingtech, its Chinese owner, following concerns of illegal technology transfers from the Netherlands unit to its China-based parent company. 

This move led to an ongoing spat, which involved Beijing, as it blocked the export of certain Nexperia products, negatively impacting the global automotive supply chain.

It was also revealed that Washington may have had a hand in the takeover, especially as Wingtech was put on its entity list since 2024. 

As the weeks rolled by, the Japanese automotive industry said that the conflict could lead to disruption, especially as it can take time before they can either receive components from Nexperia again or find new chip sources. 

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