MLCC leader releases expansion signal! Executives reveal: optimistic about demand in the AI field, this assessment is "more bold"

According to Nikkei News on September 14, the MLCC leader Murata plans to increase the production capacity of multilayer ceramic capacitors (MLCC), which are essential for AI servers, by 20% in the fiscal year 2028 (ending March 2028) compared to current levels.

Murata's Vice President Masafumi Minamide stated in an interview, "Looking ahead to the next 3 to 5 years, the company is discussing and evaluating capacity expansion plans, including new factories. I believe this evaluation will be bolder than before. The final plan has not yet been finalized internally, but we have entered a deep verification stage. Building large factories in domestic and overseas locations is one of the optional paths."

He expects that the demand for MLCC in the AI sector will continue to grow at least until 2028. In the medium to long term, the market will expand from AI data centers as infrastructure to edge AI devices.

Specifically, the term "edge AI devices" includes physical AI tracks such as robots. So far, Murata has invested in Noetra, a physical AI company co-funded with over 40 companies including SoftBank, and has joined the industry alliance to explore various issues related to component applications and packaging implementation.

Regarding future pricing strategies, Masafumi Minamide stated, "Our basic policy remains unchanged, pricing based on establishing long-term trust relationships with customers. Frequent price adjustments based on supply and demand fluctuations can easily attract new competitors. We believe that a pricing approach prioritizing short-term profits is not conducive to enhancing medium to long-term corporate value."

"On the other hand, if peers significantly adjust their prices, it may affect our established product structure optimization and production delivery arrangements. We will closely monitor industry and market trends," he added.

To achieve product line optimization, Murata has previously discontinued some consumer-grade and automotive-grade products: just this month, Murata announced the discontinuation of certain MLCC products and the expansion of other capacities, informing customers to complete written responses by the end of 2027 and to finalize orders by the end of March 2028. The discontinuation covers specific part numbers in the consumer-grade conventional series and automotive specifications series.

Coincidentally, TrendForce's MLCC industry survey shows that Samsung Electro-Mechanics has dominated the price increase for OEM and ODM customers in the fourth quarter of 2026: it is expected to raise the prices of consumer-grade X5R products for OEM and ODM customers by an average of 25%-30%, a measure aimed at curbing order demand and ensuring the capacity needed for high-end production line expansion.

Guojin Securities believes that Murata's elimination targets mainly large-sized low-capacity MLCCs, shifting focus to small-sized high-capacity and high-margin products. From the price increases by leading MLCC manufacturers and Murata's gradual exit from consumer electronics, automotive, and RF applications, it is evident that the demand for MLCC in AI remains strong, and the expansion speed cannot keep up with the growth of AI demand, continuing to favor the MLCC benefiting industrial chain ShenGang Securities pointed out that AI is driving the demand for high-end MLCC, leading leading manufacturers in Japan and South Korea to shift their production capacity towards high-end specifications. With the increase in penetration rates of intelligent driving, domestic manufacturers are expected to benefit from order overflow and domestic market share replacement. Domestic manufacturers with high capacitance, high voltage, and automotive-grade MLCC mass production capabilities are likely to be the first to benefit