The Dutch government recently froze China Wingtech Technology’s control over its Dutch subsidiary Nexperia for national security reasons. After that, the Chinese government simultaneously launched countermeasures and listed Nexperia products produced in China as export control objects. Due to the shortage of semiconductors caused by the confrontation between China and the Netherlands, Japanese automobile manufacturer Honda has suspended production at its factory in Mexico, and its factories in the United States and Canada have also reduced production.
According to Japanese media reports, due to the confrontation between China and the Netherlands over Nexperia, resulting in a shortage of semiconductors, Honda stated on the 29th that its factory in Mexico has stopped production, and it is currently unable to determine when it will restart production.
According to Honda, the Celaya plant in central Mexico, which produces the SUV "HR-V" and other models, has suspended production since October 28, and factories in the United States and Canada have also begun production adjustments (production reductions) since October 27. However, Honda did not disclose the specific scale and time of production reduction.
The Celaya plant is Honda's important export base to the United States, with an annual production capacity of 200,000 units and an output of more than 190,000 units in 2024. The North American market accounts for 40% of Honda's global sales, so if North American production is affected for a longer period, it may have an impact on Honda's performance.
Honda ADR, which is listed in the United States, fell 2.32% on the 29th to close at US$31.19.
Further reading: The Dutch government takes over Nexperia, amid fears of dismantling its European business The battle for Nexperia’s dominance raises concerns over the outflow of key semiconductor technologies to China In the battle between China and the Netherlands for control, Nexperia asked Chinese employees to ignore instructions from the Dutch headquarters Refuting rumors about salary suspension and system suspension! Nexperia says business in China is operating as usual and salaries are being paid Sino-Dutch dispute affects automotive chips and may affect U.S. auto production China restricts Nexperia exports, causing automotive supply chain to tremble Europe tightens controls on semiconductor smuggling into China, and the Netherlands rarely imposes controls on Nexperia Semiconductor