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(MENAFN- KNN India)
New Delhi, Feb 19 (KNN) Japanese Electronics component giant Murata manufacturing Co. is exploring the possibility of relocating some of its production capacity to India, marking a significant shift in global supply chain dynamics toward the world’s most populous nation.
The Kyoto-based company, renowned for its Multilayer Ceramic Capacitors (MLCCs), anticipates growing demand in the Indian market.
According to Murata President Norio Nakajima, the company is currently analysing potential investment scenarios in the region. While nearly 60 percent of Murata’s MLCC production currently takes place in Japan, this figure is expected to decrease to approximately 50 percent in the coming years.
Murata’s components are essential elements in a vast array of electronic devices, from Apple and Samsung smartphones to Nvidia servers and Sony gaming consoles, with their technology even contributing to NASA’s Mars helicopter project.
The company holds a leading position in the global capacitor market, manufacturing crucial components that regulate power distribution to electronic elements.
The decision to expand into India follows broader industry trends, as major technology companies like Apple diversify their production beyond China.
Apple has recently initiated trial production of AirPods in India, while numerous Chinese smartphone manufacturers are establishing facilities in the country, attracted by its substantial workforce and expanding consumer market.
In response to these market shifts and encouraged by Prime Minister Narendra Modi’s administration, Murata has secured a five-year lease worth USD 6.6 million at OneHub Chennai Industrial Park in Tamil Nadu.
The facility, scheduled to begin operations in fiscal year 2026, will initially focus on packaging and shipping ceramic capacitors. This measured approach allows Murata to evaluate long-term market demand before committing to a full-scale manufacturing facility.
Despite its expansion plans in India, Murata has indicated no immediate intentions to establish manufacturing operations in the United States, citing that its components are predominantly integrated into products assembled in Asia before being exported to American markets.
The company remains cautious about potential impacts from global trade tensions, particularly concerning the broader effects of tariff policies on consumer goods prices.
Looking ahead, Murata projects modest growth in global smartphone shipments, anticipating an annual increase of up to 3 percent, primarily driven by emerging markets’ demand for low- and mid-range devices.
The company forecasts smartphone production to reach 1.18 billion units in fiscal 2024, representing a 3 percent year-over-year increase.
Additionally, Murata expects significant growth in the server market, particularly driven by artificial intelligence applications, a prospect that has contributed to a 15 percent increase in the company’s stock value since its February earnings report.
(KNN Bureau)
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