--- title: "Apple supplier Murata Manufacturing rents a factory to test the Indian market, and may significantly shift its supply chain in the future" type: "News" locale: "en" url: "https://longbridge.com/en/news/228784168.md" description: "Apple iPhone component manufacturer Murata Manufacturing is considering shifting some of its production capacity to India to respond to growing market demand and business continuity planning. Company President Norio Nakajima stated that the proportion of multilayer ceramic capacitors produced in Japan is expected to drop to 50% in the coming years. Murata Manufacturing has rented a factory in India and plans to start packaging and shipping ceramic capacitors in April 2026. This move reflects the global supply chain's realignment towards India" datetime: "2025-02-19T02:43:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/228784168.md) - [en](https://longbridge.com/en/news/228784168.md) - [zh-HK](https://longbridge.com/zh-HK/news/228784168.md) generator: "portal-rs" --- # Apple supplier Murata Manufacturing rents a factory to test the Indian market, and may significantly shift its supply chain in the future According to Zhitong Finance APP, Apple (AAPL.US) iPhone component manufacturer Murata Manufacturing Co. is considering whether to transfer some of its production capacity to India, reflecting a global supply chain realignment towards the world's most populous country. Murata Manufacturing President Norio Nakajima stated that the Kyoto-based multi-layer ceramic capacitor (MLCC) manufacturer has noticed the growing demand in the Indian market and is simulating the steps needed to increase investment in the country. Nakajima said, "We have been producing the latest capacitors in Japan, but customers are asking us to increase production overseas, partly due to business continuity planning considerations." It is understood that Murata Manufacturing's products are found in nearly all electronic products, from smartphones by Apple and Samsung Electronics (SSNLF.US) to servers by NVIDIA (NVDA.US) and gaming consoles by Sony (SONY.US). The company also assisted NASA in sending a helicopter to Mars. Nakajima stated that currently, nearly 60% of Murata Manufacturing's MLCCs are produced in Japan, but this proportion may drop to around 50% in the coming years. Murata Manufacturing is a leading global supplier of capacitors, which are used to regulate power delivery to electronic components. Apple has been diversifying its production and recently began trial production of AirPods wireless headphones in India. Many Chinese mid-range smartphone manufacturers are also expected to open more factories in India, attracted by the country's abundant labor force and growing consumer spending. These customer initiatives, combined with the support commitments from Prime Minister Modi's government, have prompted Murata Manufacturing to lease a factory in the OneHub Chennai industrial park in Tamil Nadu, the southernmost part of India, with plans to package and ship ceramic capacitors starting in the fiscal year beginning April 2026. Nakajima stated that Murata Manufacturing is using this five-year, 1 billion yen (6.6 million USD) lease contract to test long-term demand in India before deciding whether to build a factory that encompasses more production processes. Nakajima said, "For us, it is still too early to establish an integrated production facility in India, as infrastructure such as electricity has not yet reached the level we require, but as customers shift production to India, we hope to establish some capacity there as soon as possible. The demand for electronic products in India is growing, and we should be prepared to respond quickly when new incentives for domestic manufacturing are introduced in India." However, Nakajima stated that despite Murata Manufacturing expanding its capacity in India, there are currently no plans to build manufacturing facilities in the United States. This is because its capacitors are primarily used in products assembled in Asia and then shipped to the U.S. Despite widespread discussions within Murata Manufacturing regarding the reciprocal tariffs imposed by President Trump, the main concern for the Japanese component manufacturer is the broad and indirect damage that tariffs may bring. Nakajima stated that the surge in prices of various consumer goods will ultimately harm the order volume for capacitors Currently, Murata Manufacturing Co., Ltd. expects global smartphone shipments to continue to grow slowly at a rate of 3% or lower per year, mainly due to sales of low-end phones in emerging economies. Nakajima stated that faster growth will come from the demand for servers running AI engines. Since Murata Manufacturing announced its quarterly earnings in early February, market expectations for strong demand for AI have driven its stock price up by about 15%. Murata Manufacturing is seen as a leading indicator of electronic product demand, and the company expects global smartphone production to reach 1.18 billion units in fiscal year 2024, a year-on-year increase of 3% ### Related Stocks - [688182.CN](https://longbridge.com/en/quote/688182.CN.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [AAPL.US](https://longbridge.com/en/quote/AAPL.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [SONY.US](https://longbridge.com/en/quote/SONY.US.md) - [SSNGY.US](https://longbridge.com/en/quote/SSNGY.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) ## Related News & Research - [Patty Murray Rips Truth Social Play: ‘There Is No Get-Rich-Quick Scheme Trump Won’t Try’](https://longbridge.com/en/news/296346705.md) - [06:18 ETVantage amplia l'offerta di CFD pre-IPO con Unitree Robotics, mentre cresce l'interesse per l'IA di frontiera](https://longbridge.com/en/news/296603328.md) - [Oura exploring how its ring could detect brain hemorrhages after Bill Ackman suggests it could have helped his daughter](https://longbridge.com/en/news/296658401.md) - [Ceramic Apple Watch Rumored to Return With Series 12](https://longbridge.com/en/news/296498278.md) - [REG - CQS Natural Res - Sale of Shares from Treasury](https://longbridge.com/en/news/296374035.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**