Murata Manufacturing Co., Ltd. announced that it has invested approximately 14 billion yen to build a new plant in Yasu City, Shiga Prefecture to expand the production capacity of electronic components such as MLCC.

The new MLCC production plant will begin construction this month and will be completed in November next year. According to Japanese media reports, although the demand for smart phones has declined, the demand for electronic components such as MLCC is expected to increase due to the adoption of automotive electronics and 5G. Therefore, Murata is continuing to increase production and it is expected that the capacity of MLCC will increase by 10% this year.

In fact, due to the explosive growth of MLCC demand last year, Murata's production subsidiary Fukui Murata Manufacturing Co., Ltd. and Izumo Murata Manufacturing Co., Ltd. have announced plans to invest 29 billion yen and 40 billion yen respectively to build a new MLCC plant. According to the plan, the two new plants will be completed by the end of this year.

According to supply chain, the demand for MLCC is expected to rise in the second half of this year after a period of stability. Under the drive of 5G and automotive electronics, the medium and long-term demand of MLCC is expected to continue to grow.