Honda Extends Production Suspension in China Amid Semiconductor Shortage Driven by AI Demand
Honda Motor has extended a production suspension at three plants in China for an additional two weeks, now set to resume on January 19, due to semiconductor shortages caused by suppliers prioritizing AI data center demands. This disruption reflects broader challenges in the automotive industry, as manufacturers face ongoing difficulties accessing mature-node chips, which could have long-term implications for production. The Society of Motor Manufacturers and Traders has highlighted the need for improved supply chain collaboration as the demand imbalance between automotive and AI sectors is expected to continue.
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Global automotive production is facing renewed disruption as semiconductor suppliers prioritize AI data center demand, impacting carmakers' access to mature-node chips. Honda Motor extended a production suspension at three of its China-based plants by two weeks, now set to resume on 19 January, due to semiconductor shortages.
This disruption follows similar production curbs at Honda's North American plants in late 2025. While specific suppliers were not named, delays have been linked to Nexperia, a Dutch semiconductor firm.
The Society of Motor Manufacturers and Traders (SMMT) warned that the focus on high-margin AI products by chip manufacturers could pose structural risks to automotive production, as mature process nodes for automotive chips become less attractive. The situation emphasizes the need for automakers to enhance supply chain visibility and collaboration with semiconductor partners, as the imbalance between automotive and AI demand is expected to persist beyond 2026.
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