Japan's Murata Manufacturing Co., Ltd. plans to expand the production capacity of MLCC raw materials for passive components. It is expected to build a new production building in November and complete it in October next year to meet the MLCC market demand.
Murata, Japan announced on the 15th that it plans to expand the production scale of Okayama Murata, a subsidiary of Setouchi City, Okayama Prefecture. It plans to build a new production building from November this year, and is scheduled to complete in October 2019.
Murata Manufacturing Co., Ltd. said that the construction of the new production building is mainly to expand production in response to increased demand for multilayer ceramic capacitors (MLCC).
According to information, Okayama Murata Manufacturing Co., Ltd. was established in April 1992 and employs 1,994 people. It is mainly engaged in the manufacture of ceramic materials and related equipment sensors.
Nikkei Asian Review recently reported that, in response to the needs of multilayer ceramic capacitors for electric vehicles and iPhones, Murata plans to build a new plant in Japan and rebuild existing plants in Japan and the Philippines. The investment amount of the new plant in Japan is estimated to be about 354 million US dollars, and it is estimated that by 2019, the production capacity can be increased by about 20%.
Global MLCC market conditions continue to outstrip supply. European foreign-funded corporations have recently predicted that South Korea's SEMCO and Yageo will be the main beneficiaries. Yageo has signed long-term contracts with major OEMs and will contribute performance in October.
Yageo will continue to expand MLCC production capacity in the next 2 years. It is estimated that the monthly production capacity of MLCC will reach 50 billion units at the end of this year, the monthly production capacity will reach 60 billion units at the end of 2019, and the monthly production capacity will reach 70 billion units at the end of 2020.
Major global manufacturers of multilayer ceramic capacitors include Murata from Japan, SEMCO from South Korea, Taiyo Yuden from TDK, TDK, Kyocera, KEMET, and AVX; Taiwanese manufacturers Yageo and Huaxinke.
The report of a US-based foreign legal person states that Murata has a global market share of approximately 40%, SEMCO accounts for approximately 21%, Taiyo Yuden accounts for approximately 12%, and TDK accounts for approximately 8%.
Automotive electronics applications are driving demand growth for automotive MLCCs, outpacing supply growth, making the overall MLCC market tight and product prices rising. The design trend of automotive electronics and autonomous driving is the main reason for the huge demand for automotive MLCCs.
Electric car pulls MLCC, Japanese and South Korean manufacturers of passive components rush to expand production
The trend of automotive electronics drives the demand for passive components. The demand for electric vehicle multilayer ceramic capacitors (MLCC) is expected to increase nearly 6 times compared to ordinary fuel vehicles, including Japanese manufacturers Murata, TDK, and South Korean manufacturer SEMCO, etc., and actively expand the production of layout vehicles Use MLCC.
The automotive electronics market includes active and passive safety assistance, electric vehicles, telematics and entertainment systems, and automotive driver assistance systems, which have strong demand and account for an increase in the cost of the entire vehicle, driving the global passive component industry to continue to grow. (MLCC) supply is tight, and in addition, demand for resistors and inductive components continues to increase.
Among them, the growth in sales of electric vehicles has also driven strong demand for MLCCs. According to statistics, each pure electric vehicle needs 17,000 to 18,000, an increase of nearly 6 times compared to 3,000 to 3,700 ordinary fuel vehicles.
Industry sources point out that the demand period for automotive passive components is longer, the industry has fewer competitors, and the gross profit margin is relatively high, but the entry barrier is also high, and it needs to pass the strict vehicle regulations verification of the brand car factory or the first-tier supplier.
The legal person quoted market research institution Paumanok expects that the global passive component terminal industry demand will reach 28.6 billion US dollars by 2022, of which the expected growth of automotive use will increase 31% to 4.6 billion US dollars.
According to Frost & Sullivan's forecast, by 2020, electric vehicles can reach 2.41 million, which is expected to multiply.
From the perspective of the layout of major manufacturers, South Korean media have recently quoted industry sources as reporting that, in response to automotive demand, Samsung Electro-Mechanics may increase the MLCC production line in Tianjin and may begin construction at the end of this year. It is estimated that by the end of next year Completion, industry people are expected to enter the mass production phase in 2020.
In addition, Japanese media recently reported that, in response to the MLCC demand for electric vehicles and iPhones, Japan's Murata Manufacturing Co., Ltd. plans to build a new plant in Japan and rebuild existing plants in Japan and the Philippines. The investment amount of the new plant in Japan is estimated to be about 354 million US dollars, and it is estimated that by 2019, the production capacity can be increased by about 20%.
The legal person pointed out that Japan's TDK and Murata passive component products accelerated to the automotive electronics market, and gradually withdrew from the general passive component market. Among them, Murata ships about 1 trillion MLCC products each year, with a global market share of 40%. It is expected that Japanese and Korean manufacturers will not easily return to the general consumer application market after shifting to the high-end high-margin automotive market.