Nexperia looks like a tempest in a teapot.
Looks like a good opportunity to put Nexperia out of business.
Trivial !!!!
- Cause: The shortage stems from geopolitical tensions between the Netherlands and China, specifically over the Chinese-owned chipmaker Nexperia. China has blocked exports of Nexperia's products, leading to a semiconductor supply crunch for automakers.
- Mexico: Honda shut down its Celaya Auto Plant in Mexico on Tuesday, October 28, and it is not clear when production will resume. This plant primarily produces HR-V SUVs.
- United States and Canada: Production adjustments, including temporary reductions and suspensions, began at Honda's plants in the U.S. and Canada on Monday, October 27. For example, the company is halving its output at its factory in Canada.
- Other automakers: Other car manufacturers, including Nissan and Mercedes-Benz, are also being affected by the same semiconductor shortage.
AI can make mistakes, so double-check responses
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What's the outlook for Honda's auto production in November 2025?
As of late October 2025, the outlook for Honda's auto production in November is uncertain and dependent on its ability to manage the ongoing semiconductor shortage
. The company has announced it is making "strategic adjustments to production" and that it is a "fluid situation".
Key details on the situation:
- Cause of the shortage: The disruption stems from geopolitical tensions between China and the Netherlands over the Chinese-owned chipmaker Nexperia, which is a key supplier of automotive semiconductors. China has blocked the export of Nexperia's products in response to the Dutch government taking control of the company.
- Known production impacts:
- Mexico: Operations were halted at the Celaya Auto Plant, which builds the HR-V, as of Tuesday, October 28. There is no public timetable for resuming production.
- Canada: Honda has cut output volumes by half at its plant in Canada, which produces the Civic and CR-V.
- United States: Production has been reduced at U.S. plants in Ohio, including those in Anna and Marysville.
- Outlook for November:
- Honda has stated it is trying to minimize the effects of the supply interruption and is working with suppliers to find alternative components.
- However, finding replacement parts and validating them could cause delays.
- Honda has not disclosed the full scope of the planned production cuts or how long they will last.
- Employees at affected U.S. plants have been given options to work, use paid time off, or take unpaid leave, signaling that the company expects the disruption to continue.
Given the ongoing nature of the semiconductor issue and the lack of a clear timeline for a resolution, it is highly likely that Honda's North American auto production will remain reduced throughout November 2025.
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What are Honda's alternatives to Nexperia chips?
Honda has several potential alternative suppliers to Nexperia for the basic semiconductor components affected by the current supply blockage
. The primary challenge is not the availability of alternatives themselves, but the time-consuming process of certifying new components to meet strict automotive safety standards.
Key potential alternatives for Honda include:
- Infineon Technologies: A major European semiconductor manufacturer with a significant automotive presence.
- Advantages: As Europe's largest chipmaker, Infineon offers an extensive portfolio of automotive-grade components, including power MOSFETs and diodes.
- Challenge: New components require time for internal and external validation.
- Onsemi (formerly ON Semiconductor): Offers a broad range of products that compete with Nexperia's portfolio, including power MOSFET and diode technology.
- Advantage: Known for competitive pricing and a strong market presence in North America and Asia.
- Challenge: New packages may require redesigning circuit boards.
- STMicroelectronics: A strong contender with deep expertise in power semiconductors, especially for high-voltage applications.
- Advantage: Vertically integrated manufacturing provides supply chain stability.
- Challenge: Some of its automotive lines focus on higher-voltage applications.
- Texas Instruments: Offers a broad selection of logic and small signal devices that can substitute Nexperia's parts.
- Advantage: Provides extensive cross-reference options for identifying compatible parts.
- Other suppliers: Vishay, Toshiba, and Diodes Incorporated also provide alternative options for diodes and other small signal transistors.
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The challenge of switching suppliers
While these alternative suppliers are available, automakers like Honda cannot simply swap out parts. Each new component must be validated to meet stringent safety and reliability standards before being used in a vehicle. This process includes:
- Internal validation: The car manufacturer's engineers must test the new chip to ensure it functions as intended.
- Supplier validation: Tier 1 parts makers must also validate the new component for the subsystems they manufacture.
- Extended timelines: This entire certification process can take weeks or even months, especially for safety-critical systems.
The widespread and low-tech nature of the affected Nexperia components also complicates the issue. These chips are used in many basic but essential functions throughout a vehicle, from steering wheels to climate control. This makes a quick, temporary fix unlikely for the auto industry.
What non-Chinese alternatives is Honda looking into?
What are Honda's long-term strategies to prevent future chip shortages?
How is the Nexperia chip shortage affecting other automakers?
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