Photographer: Andrey Rudakov / Bloomberg
Photographer: Andrey Rudakov / Bloomberg
Murata Manufacturing Co., the world’s largest manufacturer of ceramic capacitors for Apple Inc. and other smartphone brands expect demand for fifth-generation wireless devices to exceed 500 million handsets in the coming fiscal year, building on a rush to replace Huawei Technologies Co. in the global consumer arena.
Apple, Samsung Electronics Co. and Chinese rivals Xiaomi Corp., Oppo and Vivo compete for components for their devices, hoping to fill a void as Huawei’s mobile business shrinks under the weight of US sanctions. President Norio Nakajima said in a December interview that Murata’s factories will not be taking a vacation break as they work to catch up with rising orders, adding that “the situation is most dire with our advanced smartphone-use capacitors.”
“These cell phone manufacturers are competing to grab our delivery capacity once occupied by Huawei, and I’m not sure how much of that is supported by their actual production forecast,” Nakajima said. “I to feel as if the move has overheated, so expect their orders to drop in February and March. “
Photographer: Kiyoshi Ota / Bloomberg
Murata is the world leader in MLCC, or multilayer ceramic capacitors, used to control the electrical current in printed circuit boards. Hundreds, sometimes thousands, are connected to electronics, from smartphones to cars.
“The industry had 300 million 5G smartphones in the current fiscal year, and I expect this to increase to at least 500 million in the next fiscal year,” said the president of the Kyoto-based company. “We will continue to spend capital to keep up with growing demand.”
Analysts think the Murata chief’s attitude is too conservative. Ace Research Institute’s Hideki Yasuda does not expect demand from Apple and its peers to decline at any point in this calendar year, fueled by greater than expected consumer hunger for 5G phones. Handsets to be released this year will also be compatible with a wider range of frequencies, increasing the need for Murata-made components to adjust the flow of electricity.
Yasuda said Murata’s manufacturing problems are representative of severe shortages in the electronics supply chain, affecting the assembly of many products, including video game consoles. Sony Corp.’s PlayStation 5 and The Xbox series from Microsoft Corp. X both remain in limited stock, almost two months after their first introduction.
Murata’s Nakajima does not dispute that demand for his MLCC would remain strong throughout the year, though he said he expected a short reprieve after the Chinese New Year holiday. He said the company’s MLCC sales would increase by 10% in the next fiscal year from April, largely thanks to 5G phones.