Quick Takeaways
- Production halts at key China plants and delayed restarts show how deeply chip shortages continue to disrupt global auto manufacturing.
- Uneven semiconductor availability is forcing Honda to split operations by region while absorbing significant profit impact.
On January 5, 2026, Honda production suspension amid global semiconductor shortage emerged as a key development affecting the automaker’s China and global operations. Multiple press releases confirmed that three manufacturing plants operated by GAC Honda Automobile Co. Ltd. were unable to resume production as planned due to persistent chip supply constraints.
Honda production suspension amid global semiconductor shortage impacts China plants
The affected GAC Honda facilities had initially scheduled a five-day production halt beginning December 29, 2025. However, the continued lack of semiconductors forced the company to delay the restart of operations, including internal combustion engine vehicle models, until January 16, 2026. Honda expects a complete normalization of output only after January 19, reflecting ongoing supply chain pressure.
Production continuity at other Honda joint ventures
While the GAC Honda sites face delays, Dongfeng Honda Automobile Co. Ltd., Honda’s other major joint venture in China, is continuing production without disruption. This operational split highlights how uneven semiconductor availability is influencing manufacturers differently, even within the same corporate group.
Broader manufacturing disruptions and contingency planning
Earlier, Honda’s Japanese manufacturing operations had also announced a two-day production suspension from January 5 to January 6. In response, the company is accelerating alternative procurement strategies to stabilize component supply and protect downstream production schedules. These efforts underline the urgency of securing reliable semiconductor sources.
Key operational responses include:
Financial implications for North American operations
The semiconductor shortage has not been limited to Asia. Reduced production of key Honda models in North America is expected to weigh on financial performance. The automaker estimates that the disruption could reduce its fiscal year 2026 profit by around JPY 150 billion, underscoring the global scale of the semiconductor challenge facing the automotive industry.
Honda production suspension amid global semiconductor shortage impacts China plants
The affected GAC Honda facilities had initially scheduled a five-day production halt beginning December 29, 2025. However, the continued lack of semiconductors forced the company to delay the restart of operations, including internal combustion engine vehicle models, until January 16, 2026. Honda expects a complete normalization of output only after January 19, reflecting ongoing supply chain pressure.
Production continuity at other Honda joint ventures
While the GAC Honda sites face delays, Dongfeng Honda Automobile Co. Ltd., Honda’s other major joint venture in China, is continuing production without disruption. This operational split highlights how uneven semiconductor availability is influencing manufacturers differently, even within the same corporate group.
Broader manufacturing disruptions and contingency planning
Earlier, Honda’s Japanese manufacturing operations had also announced a two-day production suspension from January 5 to January 6. In response, the company is accelerating alternative procurement strategies to stabilize component supply and protect downstream production schedules. These efforts underline the urgency of securing reliable semiconductor sources.
Key operational responses include:
- Revising supplier sourcing strategies to diversify chip supply
- Adjusting production schedules to prioritize high-demand models
- Strengthening inventory planning to reduce future stoppages
Financial implications for North American operations
The semiconductor shortage has not been limited to Asia. Reduced production of key Honda models in North America is expected to weigh on financial performance. The automaker estimates that the disruption could reduce its fiscal year 2026 profit by around JPY 150 billion, underscoring the global scale of the semiconductor challenge facing the automotive industry.
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