February 7, 2024 /SemiMedia/ -- Izumo Murata Manufacturing Co., Ltd., a manufacturing subsidiary of Murata Manufacturing Co., Ltd., located in Izumo City, Shimane Prefecture, announced that it will start construction of a new production building in March 2024. The construction of the new production building is aimed at establishing a system to respond to increased demand for multilayer ceramic capacitors over the medium and long term.

The new production building covers an area of 10,742 square meters and has a total floor area of 69,676 square meters. The building will break ground in March and is scheduled to be completed in March 2026 and start producing MLCCs once the equipment is in place.

The passive component market believes that the mid- to long-term demand for MLCC will maintain growth. As the demand for terminals such as smartphones, automobiles, communication equipment, IoT, and AI servers increases, the demand for various types of MLCC capacitors will be boosted.

According to reports, an AI server requires 3,000 MLCCs; an electric car uses 10,000 to 15,000 MLCCs; a smartphone uses about 12,000 MLCCs, and a general laptop uses about 1,000 MLCCs.

According to the passive component supply chain, the MLCC market demand is expected to be approximately 5 trillion units in 2023 and will climb to 6 trillion units by 2026, with high-end applications such as AI servers and electric vehicles being the main driving force.