Amid the booming market of the world's No. 1 MLCC company, Murata of Japan began construction this month to extend its production line.
Japan's Murata recently announced that it will begin construction of additional MLCCs starting this month in Ushi, Jiangsu, China. It is going to invest a total of 14 billion yen (140 billion won). It is scheduled to be completed in December 2019. Murata told that it would seek to increase production capacity in response to increased demand for MLCCs in the future.
MLCC is a key component that controls the constant current flow in electronic circuits. Due to increased demand for electric vehicles and high-performance Smartphones, production volume is also increasing. Murata is expected to prepare for the demand in the 5G era, including Apple`s next-generation iPhone, at its new factory in China. Smartphones have about 1,000 MLCCs.
According to the nikkei, Murata is building MLCC plants in Fukuoka, Shimane and Philippines. It is planning to increase production capability of MLCC by 10% every year. Murata currently has about 40% of the world's shipments. Recently the shortage has been accelerating as demand has exceeded supply.
Samsung Electro-Mechanics, the world`s second-largest MLCC company, also decided to invest in extension of its facilities in September. Like Murata, it aims to be completed by the end of 2019. It is predicted that changes in market environment such as changes in price of MLCC will inevitably be inevitable as number of top and second companies are increasing their supplies during similar period.
Tsuneo Murata, Chairman Murata, said that "Although MLCC manufacturers (including Muraota) have increased production, it is expected that supply of MLCCs will continue to increase."