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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.