Due to the strong demand for smart phones, tablet computers, automobiles and other related downstream markets, Murata decided to expand the production of multilayer ceramic capacitors (MLCC) and surface wave filters (SAWF). According to Murata's 2014 fiscal year goal, the production capacity of multilayer ceramic capacitors needs to increase by 5%, and the production of surface wave filters has been expanded and increased in 2013 fiscal year. At that time, the production capacity increased Add 30% and the capacity will be increased by 15% in 2014. In order to meet the target of increasing production capacity, Murata's investment in equipment will reach 80 billion yen (about $700 million) in fiscal year 2014, 18% more than 68 billion yen in fiscal year 2013.
Mr. Murata Hengfu, President of Murata production Institute, said that due to the 4G subsidy policy in mainland China, the MLCC demand for LTE mobile phones began to increase, and the orders of Murata MLCC increased significantly from April to June 2014, especially the demand for 5mode LTE mobile phones grew faster
Murata Hengfu said that as China Mobile changed its subsidy policy from 5mode to 3mode in July September 2014, Murata's orders for LTE related components declined slightly. However, with the popularity of 3mode LTE phones, Murata estimated that with the demand for LTE phones in mainland China, the total sales amount of MLCC in fiscal year 2014 will still grow significantly.
Among Murata's total revenue of communication parts, the proportion of the mainland market accounted for about 7% in April September 2013 and 12% in April September 2014, and the proportion of the mainland market is still rising steadily. Therefore, Murata estimates that MLCC needs to increase production to meet the needs of the mainland market. The market situation of SAWF is similar to that of MLCC, which is driven by the demand of the mainland market.
At present, Murata invests in production increasing factories. MLCC is a factory in Japan, the mainland and the Philippines. It is mainly to modify large MLCC production lines so that these production lines can concurrently produce small high capacitance products. SAWF is mainly composed of two factories in Japan.
Murata has invested 45 billion yen in various equipment plants from April to September 2014. From October 2014 to March 2015, Murata is expected to invest 35 billion yen in equipment. In addition to MLCC and SAWF, there are other communication modules and multi-layer components to meet the market demand. With the growth of mobile phone and automobile market, the market of related components will still maintain a high growth.