According to Nikkei News recently, Murata plans to invest 14 billion yen to build a new MLCC plant near an existing plant in Wuxi, Jiangsu Province, China.

According to the report, the new plant is expected to be completed in December 2019, this new MLCC plant in China mainly for the MLCC demands of Apple’s new iPhone, car and 5G.

At the same time, Murata is withdrawing from the general passive component market and accelerating the transfer of products to the automotive electronics market. For this reason, Murata has renovated its plants in the Philippines and Japan in addition to building new plants in Japan. According to Murata, the production capacity will increase by about 20% in 2019.

In terms of production capacity expansion, although Murata’s annual expansion at 10% may affect the price of passive components, what Murata wants is to continue to be the world’s number one position. Murata has announced the latest expansion at the beginning of June and the end of September respectively. It is expected to be completed around the end of next year and will be officially operational by the end of next year, which will affect the price of passive components from the following year.