Murata Manufacturing announced that its wholly-owned subsidiary, Saitama Murata Manufacturing, will stop production of two wholly-owned production subsidiaries in China in 2019.

According to the registration information, the two factories to be shut down are located in Shantou, Guangdong Province, China. Products manufactured in these two factories include intermediate frequency transformers, coils, tuners, filters, coil modules, power supplies, inductors, Boost module, chip inductor and wireless network card.

According to the announcement, Saitama Murata Manufacturing Group has contributed primarily to the development of the telecommunications market through its design and production of coil products, but due to a diversification of market needs in major markets such as the smartphone market in recent years, an acceleration of the development cycle, and intensifying competition with overseas manufacturers, it is facing a difficult business environment.

Murata's announcement also emphasized that the impact of the closure of the two subsidiaries on its overall financial performance is negligible.