BUSINESS

GAC Honda to Halt Production for Two Days Over Chip Shortage

Published: Dec. 19, 2025 4:10 a.m. GMT+8

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GAC Honda’s factory in Guangzhou.

GAC Honda will suspend production for two days starting Dec. 30 due to a shortage of semiconductor supplies, Honda’s China unit and the joint venture confirmed on Thursday.

The temporary halt reflects ongoing disruptions tied to Nexperia, a major supplier of automotive chips, whose supply constraints have rippled across the global auto industry.

GAC Honda is a 50-50 joint venture between Honda Motor Co. and Guangzhou Automobile Group Co. Ltd. (GAC), operating three vehicle assembly plants in China with combined annual capacity of about 600,000 units. Honda’s other China joint venture, Dongfeng Honda, has not been affected so far.

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GAC Honda will suspend production for two days from Dec. 30, 2025, due to a semiconductor shortage caused by Nexperia’s supply disruptions.
Honda expects a full-year vehicle delivery reduction to 3.34 million units, citing a potential 110,000 unit loss linked to the chip shortage.
Nexperia’s operational strain stems from political tensions between the Netherlands and China, impacting global automotive chip supply and causing ongoing industry uncertainty.

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Who’s Who

GAC Honda: GAC Honda, a 50-50 joint venture between Honda Motor Co. and Guangzhou Automobile Group Co. Ltd. (GAC), will suspend production for two days starting December 30 due to a semiconductor shortage. This temporary halt is linked to supply constraints from Nexperia. GAC Honda operates three assembly plants in China with an annual capacity of about 600,000 units.

Nexperia: Nexperia, a Dutch-headquartered company, specializes in discrete and power semiconductors crucial for vehicles. It's a key supplier for automotive chips, holding about 5% of global automotive discrete semiconductor revenue. Acquired by Wingtech between 2018 and 2020, Nexperia has recently faced significant operational challenges due to political tensions, leading to supply disruptions for various clients, including Honda.

Honda Motor Co.: Honda Motor Co. is a Japanese automaker and a partner in the GAC Honda joint venture in China. This venture operates three vehicle assembly plants with a combined annual capacity of about 600,000 units. The company has faced production issues, including suspensions at its Mexico plant and output cuts in the US and Canada, due to a semiconductor shortage from supplier Nexperia. Honda also lowered its full-year vehicle delivery forecast, anticipating losses of approximately 110,000 vehicles.

Guangzhou Automobile Group Co. Ltd. (GAC): Guangzhou Automobile Group Co. Ltd. (GAC) is a Chinese automotive manufacturer. It is a 50-50 joint venture partner with Honda Motor Co. in GAC Honda, which operates three vehicle assembly plants in China with a combined annual capacity of approximately 600,000 units.

Dongfeng Honda: Dongfeng Honda is one of Honda's joint ventures in China. It has not been affected by the semiconductor supply shortage that has led to production suspensions at GAC Honda. The article doesn't provide further details on its operations or capacity.

NXP Semiconductors NV: NXP Semiconductors NV is the former parent company of Nexperia, from which Nexperia was spun off as the standard products division. Nexperia, now headquartered in the Netherlands, was acquired by Wingtech between 2018 and 2020. This indicates a historical connection between the two semiconductor companies.

Wingtech: Wingtech, a Chinese company, fully acquired Nexperia, a major automotive chip supplier, between 2018 and 2020. Wingtech founder Zhang Xuanzheng's role at Nexperia and the control of Wingtech's shares in Nexperia are currently under dispute by a Dutch enterprise court.

Bosch: Bosch is a client of Nexperia, a major supplier of automotive chips. Nexperia specializes in discrete and power semiconductors, and the ongoing supply constraints from Nexperia have impacted the global auto industry.

Huawei: Huawei is a client of Nexperia, a Dutch-headquartered company specializing in discrete and power semiconductors. Nexperia supplies key components to Huawei, among other tech giants like Apple and Samsung.

Apple: Apple is a client of Nexperia, a Dutch semiconductor company. Nexperia supplies key components to Apple, among other major clients.

Samsung: Samsung is mentioned as one of the clients supplied by Nexperia, a major semiconductor company specializing in discrete and power semiconductors. Nexperia supplies key components to various clients globally, including Samsung.

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What Happened When

Late September 2025：: Nexperia began facing operational strain amid political and regulatory tensions between the Netherlands and China.

Early October 2025：: Chip shortages from Nexperia began, leading to production suspensions at Honda’s Mexico plant and output cuts at factories in the United States and Canada.

Late October 2025：: Honda began warning of production risks as the Nexperia supply crunch intensified.

Nov. 1, 2025：: China’s Ministry of Commerce announced it would ease certain countermeasures to support companies facing genuine supply difficulties.

Nov. 7, 2025：: Honda executives stated that chip shortages from Nexperia began in early October and reported production suspensions and output cuts. Honda also lowered its full-year vehicle delivery forecast to 3.34 million units from 3.62 million.

Nov. 19, 2025：: The Dutch government announced it had suspended a prior 'freeze' order, allowing Nexperia and its subsidiaries to adjust assets, operations, and personnel.

Late November 2025：: Nexperia’s Dutch entity stated that customers worldwide were still at risk of shutdowns due to inadequate supply from China.

Nov. 28, 2025：: Nexperia China claimed it had resumed exports for civilian uses and shipped 7.4 billion chips to 515 customers since mid-October 2025, while accusing the Dutch entity of withholding wafer supplies and delaying contract payments.

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