Murata Manufacturing and Taiyo Yuden expect revenue from multi-layer ceramic capacitors (MLCC) to grow by over 10% this year.
The Japanese companies said revenues from this fiscal year __ from April 2022 to March 2023 __ are expected to increase by 11% and 14%, respectively, this year.
Meanwhile, compatriot TDK said it expects revenue growth between 7% to 10% over the same time period.
In the previous fiscal year, Murata marked revenues of 788.5 billion yen while Taiyo Yuden and TDK posted 230.3 billion yen and 198.1 billion yen, respectively.
Samsung Electro-Mechanics’ component business unit, which makes MLCCs, had recorded 4.77 trillion won in revenue last year, coming in second after Murata.
Murata said demand for 5G smartphones and electric vehicles (EV) was leading the growth in MLCCs.
The Japanese company said the global shipment increase in smartphones will only be 1% to 1.37 billion units but 55% of the shipment will come from 5G smartphones.
5G smartphones use 900 to 1100 units of MLCCs, while 4G smartphones use between 700 to 800 units.
The company also said a total of 84 million units of automobiles are expected to be shipped this year, a 10% year-on-year increase, but EV shipment is expected to increase 50% over the same time period to 24 million units.
However, despite the growth, Murata and Taiyo Yuden’s growth projection this year is slower than the previous fiscal year’s 25% and 18%, respectively.