Murata Mess
On 12-10-21 and 01-07-22 we updated readers on the status of one of the more important components in current CE products, MLCCs or Multi-Layer Ceramic Capacitors and back in August of last year we noted that Murata (6981.JP), the world’s largest producer of MLCCs (between 31% and 45% share depending on inclusions) had shut down its plant in Takebu, Japan for a week due to COVID-19. It seems that once again Murata has been plagued with COVID-19, but this time the plant, which accounts for ~20.7% of the company’s capacity has been only partially affected, given some measures taken after the shutdown last year. Expectations are that the partial shutdown will affect MLCC production for some high-end smartphones and servers but current inventory is able to make up for the shortfall.
While MLCCs are typically quite small, ranging from ~0.8” x 0.6” to 0.01” x 0.005” (.254mm x .127mm) they are integral to many CE devices, particularly smartphones, and even more so 5G smartphones. Murata’s production capacity is primarily in Japan (56%), China (36%), Singapore (3%), and the Philippines (5%), although production in the Philippines is primarily for the automotive space. Singapore is focused on high-end specification MLCCs for smartphones, while China is focused more on consumer oriented (lower spec) MLCC production, leaving Japan as the primary for servers, 5G base stations, notebooks, and additional automotive production. With the recent outbreak of the COVID-19 Omicron variant, MLCC production at Murata is again at risk, with Japan and the Philippines the current hotspots for the company. With the relatively high price of MLCCs and moderate inventory levels, we expect little additional pressure on the MLCC market as the Omicron surge seems to be relatively short-lived thus far.
While MLCCs are typically quite small, ranging from ~0.8” x 0.6” to 0.01” x 0.005” (.254mm x .127mm) they are integral to many CE devices, particularly smartphones, and even more so 5G smartphones. Murata’s production capacity is primarily in Japan (56%), China (36%), Singapore (3%), and the Philippines (5%), although production in the Philippines is primarily for the automotive space. Singapore is focused on high-end specification MLCCs for smartphones, while China is focused more on consumer oriented (lower spec) MLCC production, leaving Japan as the primary for servers, 5G base stations, notebooks, and additional automotive production. With the recent outbreak of the COVID-19 Omicron variant, MLCC production at Murata is again at risk, with Japan and the Philippines the current hotspots for the company. With the relatively high price of MLCCs and moderate inventory levels, we expect little additional pressure on the MLCC market as the Omicron surge seems to be relatively short-lived thus far.
MLCC Capacitors (0402) - Source: Samsung Electro-Mechanics
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