Honda to halt production in Japan, China as chip shortage bites

Investing.com-- Honda Motor Co (TYO:7267) will temporarily halt and reduce vehicle production at plants in Japan and China in the coming weeks due to a persistent global semiconductor shortage, media reports showed on Thursday.

According to local reports, Honda will suspend operations at three joint-venture plants in China from December 29 to January 2, reflecting ongoing disruptions in chip supply that have affected production schedules.

 In Japan, Honda will suspend output at key domestic plants on January 5 and 6, with reduced operations thereafter as it grapples with insufficient chip supplies for vital automotive systems.

The shutdowns stem from broader semiconductor supply chain strain tied to turmoil around Nexperia, a Netherlands-based chipmaker whose governance disputes and export restrictions have disrupted shipments of legacy semiconductors crucial to vehicle production.

Tokyo-listed shares of the company declined 2.5% on Thursday and were largely unchanged on Friday.