Honda’s Mexican Plant Halts Production Due to Nexperia Semiconductor Dispute

Honda has halted car production in Mexico, announcing the decision on October 29. There is currently no indication of a resumption of production. The dispute between the Netherlands and China over Nexperia, a Dutch-based Chinese semiconductor manufacturer, has led to component shortages. This is the first time a Japanese automaker has been explicitly affected by this issue.

In Mexico, Honda halted production on October 28, and production in the US and Canada began to be adjusted on the 27th. Honda has not disclosed the scale or duration of the production cuts. North America accounts for 40% of Honda’s global sales; prolonged disruptions to North American production could lead to a decline in performance.

The plant halted is the Celaya plant in central Mexico, a key base for Honda’s car exports to the US. The plant has an annual capacity of 200,000 vehicles, primarily producing models such as the HR-V SUV.

Honda uses general-purpose semiconductors manufactured by Nexperia in some of its components. Another plant in Mexico, reportedly producing motorcycles, is still operating normally. The Dutch government took over Nexperia, a Chinese company, citing national security concerns. The Chinese government retaliated by imposing export controls on Nexperia’s products manufactured in China.