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 phones in the next fiscal year, based on a replacement rush Huawei Technologies Co. in the global consumer arena.
Apple, Samsung Electronics Co. and Chinese rivals Xiaomi Corp., Oppo and Vivo are struggling to secure components for their devices, hoping to fill a gap as Huawei’s mobile business shrinks under weight US sanctions. President Norio Nakajima said in a December interview that Murata’s factories will not take a vacation break while working to reach rising orders, adding that “the situation is the most severe with our state-of-the-art capacitors for smartphone use. CEs “.
“These mobile phone manufacturers are competing to take over our supply capacity once taken over by Huawei and I’m not sure how much it is backed by their actual production forecasts,” Nakajima said. “I sense as if the movement is overheated and thus waiting for their orders to drop in February and March.
Photographer: Kiyoshi Ota / Bloomberg
Murata is the global leader in MLCC or multilayer ceramic capacitors, used to regulate the electrical flow in circuit boards. Hundreds, sometimes thousands of them are attached to electronics, from smartphones to cars.
“The industry had 300 million units of 5G smartphones during the current fiscal year and I expect it to grow to at least 500 million next fiscal year,” said the president of the Kyoto-based company. “We will continue to make capital expenditures to keep pace with growing demand.”
Analysts consider Chief Murata’s position too conservative. Hideki Yasuda of the Ace Research Institute does not expect demand from Apple and the like to decline at any time this calendar year, fueled by consumers’ appetite stronger than anticipated for 5G phones. The phones to be launched this year will also be compatible with a wider set of frequencies, extending the need for components manufactured by Murata to regulate the flow of electricity.
Yasuda said Murata’s production hiccups are representative of severe shortages in the electronics supply chain, affecting many products, including video game consoles. PlayStation 5 and Sony Corp. Xbox series to Microsoft Corp. X both remain limited in supply, almost two months after the initial launch.
Nakajima of Murata does not dispute that the demand for MLCC will remain strong throughout this year, although he said that he expects a short respite after the Chinese Lunar New Year holiday. He said MLCC’s sales will increase by 10% in the next fiscal year, starting in April, largely due to 5G phones.