An Email that Murata sent to its authorized distributors been disclosed recently, according to this email, Murata is going to reduce the production capability for some old product lines and will increase the price from March 2018.

As the explanation in this mail, Murata’s market strategy is to focus on the production for the products which are advanced with smaller size and higher performance, but due to the high demand of the old products, Murata’s production is now goes far from its strategy and hard to adjust. For leading the production to the right direction, Murata decide to reduce the production by 50% for the old production line (0603/0805, capacitance under 1uf). At the same time, Murata will transfers the orders to Taiwan manufacturers and manufacturers from other regions on purpose of reducing production capability of itself.

Base on the high market demand, Murata now transfer the order to other manufacturer which are already in tight production status, it might lead to a new MLCC price hike.