Japanese Firms Craft Mexico Strategy to Boost Chip Supply

Japanese companies operating in Mexico are developing a regional strategy to strengthen semiconductor supply chains and meet the country’s growing chip demand, according to Kozo Honsei, Japan’s Ambassador to Mexico.

“I will speak with federal and state authorities to see how we can move forward on this issue, not only with Japan but also to ensure a stable supply chain, especially in the high-tech industry,” Honsei said during the 31st Mexican Foreign Trade Congress.

The announcement follows Honda’s suspension of operations at its Celaya, Guanajuato plant due to a semiconductor shortage. Honsei confirmed discussions with the Mexican government on possible cooperation. “We are talking with the Mexican government about what can be done, because Honda has stopped operations due to the lack of semiconductors,” he said.

Honda’s production halt is linked to Nexperia, a Netherlands-based semiconductor manufacturer owned by Chinese company Wingtech Technology, which reportedly cannot  guarantee supply  following Beijing’s restrictions on chip exports. The Celaya plant, producing roughly 200,000 HR-V SUVs annually, has paused assembly with no timeline for resuming operations. Honda is seeking alternative suppliers to restore production.

Other automakers, including Volkswagen, Nissan, Mercedes-Benz, and Stellantis, have reported varying impacts but continue to monitor the situation closely. Rogelio Garza, president, Mexican Automotive Industry Association (AMIA), warned that Honda’s suspension highlights a broader risk for the sector. “This issue could replicate among other automakers in the country,” he said, noting that Nexperia’s prior legal and operational challenges in Europe have contributed to the supply disruption.