February 19, 2025 /SemiMedia/ — Murata Manufacturing is considering relocating part of its production capacity to India in response to a shifting global supply chain and growing market demand. The Japanese company, a leading manufacturer of multi-layer ceramic capacitors (MLCCs), is headquartered in Kyoto.

Murata President Norio Nakajima stated that the company has seen rising demand in India and that customers are requesting more production overseas, particularly for business continuity and supply chain stability. "While most of our latest capacitors are produced in Japan, we may reduce that share from 60% to about 50% in the coming years," Nakajima said.

To support this strategy, Murata has leased a factory in the OneHub Chennai Industrial Park in Tamil Nadu, India, with plans to start packaging and shipping ceramic capacitors in the fiscal year starting April 2026. The ¥10 billion (USD 66 million) investment is a five-year commitment, aimed at assessing long-term demand in the Indian market before deciding whether to build a larger facility with expanded production capabilities.

However, Nakajima indicated that there are currently no plans to establish a manufacturing facility in the United States, as Murata's capacitors are primarily assembled in Asia and then shipped to the U.S.

As demand for advanced chips in artificial intelligence and electric vehicles grows, sales of MLCCs used in these technologies are expected to rise in tandem with the semiconductor market. Murata, with its leading share in the global MLCC and inductor markets, is poised for significant long-term profit growth. Additionally, its RF modules, including the MetroCirc series using multi-layer resin substrates, are expected to see increased sales and profits in the next five to six years as wireless networks transition to 6G.