Murata Manufacturing plans to expand production lines in Okayama, Japan by the end of 2020 to increase the supply of raw materials for products such as MLCC. In addition, Murata's production facilities in Shimane, Japan and Thailand will also be expanded to meet the high growth demand driven by 5G and miniaturization of electronic products.
According to reports, the Murata plant in Okayama prefecture mainly produces barium titanate, which is the main raw material for the production of MLCC. The total investment for the expansion is 16 billion yen (approximately $ 145 million). In addition to the expansion of production facilities and ancillary energy facilities, it also includes the expansion of employee buildings and the enhancement of employee benefits and salaries.
With the full launch of 5G networks in Japan in 2020, the demand for 5G base stations will increase rapidly, and 5G mobile phone manufacturing and sales will also increase. As a result, Murata will start producing ultra-small MLCCs with the same capacitance but only one-fifth the size since the first quarter of 2020.