As is well known, capacitors are a core component in electronic devices. With the popularization and upgrading of smart phones, 5G technologies and electronic vehicles, the supply and demand for ceramic capacitors in the global market is becoming increasingly tight, and the burden on manufacturers is increasing.
At the end of June, Murata made the news that it plans to increase the price of ceramic capacitors by 2-3 percent. You should know that there are many mobile phone giants such as Apple, Huawei and ZTE among their customers. Japanese media reported concerns on July 10, which may lead to an increase in global smartphone prices.
Established in 1944, Murata Manufacturing Co., Ltd. is a large-scale manufacturer of electronic components.
According to the “Nikkei News” on the 10th, since the Internet bubble in 2000, Japan’s old electronic components manufacturer Murata has not adjusted the price for 18 years. Looking at the global market, due to the continuous improvement of the performance of electronic components, enterprises usually cut the price of existing products by about 10% every year.
Therefore, this price increase is rare. In late June, Murata started negotiations with customers such as home appliances and automobiles, and hopes to complete the price increase within this year. The specific increase will vary depending on the product and sales volume.
They plan to increase the price of their main product, the ceramic capacitor (MLCC), by 2-3 percent.
Make a simple science here. Ceramic capacitors are a general term for capacitors made of ceramic materials. Compared with other capacitors, they have higher use temperature, larger specific capacity, better moisture resistance, less dielectric loss, and a wider temperature coefficient of capacitance. . It is widely used in electronic circuits and is used in considerable quantities.
The world’s smallest monolithic MLCC produced by Murata (left, L/W/T=0.25 x 0.125 x 0.125mm) Source: Business Wire
According to the report, in general, a smartphone needs about 1000 MLCCs, and a car needs about 10,000. In the past, its unit price was no more than 10 yen (about 6 cents).
When it comes to the international market structure of MLCC, Japanese manufacturers have a clear lead. According to statistics from Paumanok, a US passive component market research company, the market share of Japanese companies such as Murata, Taiyo, and TDK is extremely high. Among them, Murata is the leader, reaching nearly 30%.
Murata is the world’s first MLCC producer
“Nikkei News” said that in addition to Murata, Taiyo Yuden also began to ask some customers for price increases. The article analyzes that price increases may have become an inevitable trend, which may also lead to an increase in global smartphone prices.
Because Murata’s products are mostly used in famous smartphone brands such as Apple, Huawei and ZTE. For example, the iPhone 6 Plus has more than 1,300 parts, of which more than 400 are the 0402 size MLCC provided by Murata.
MLCC mounted on a circuit board
As for the specific reasons for the price increase, on the 9th, Murata made an explanation for the professional magazine “International Electronic Business” in China’s electronics field.
They said that in recent years, due to the increasing demand for semiconductor raw materials, metals, packaging and crude oil, the production costs of raw materials and labor costs of electronic component manufacturers are rising, and relatively stable and planned production is in trouble.
Especially for MLCC, the cost of raw materials such as electrode materials, ceramic raw materials, and processed materials continues to rise sharply. Murata has always sought to maximize supply capacity by increasing investment, expanding production capacity, and improving production efficiency.
According to the Nikkei News, today, smartphones, 5G technology, and electronic vehicles are rapidly developing worldwide. For example, 5G is the foundation of the “Internet of Things.” By 2022, the size of the Japanese car networking market is likely to triple, reaching 17 trillion yen (about 1 trillion yuan).
The situation in our country is even more alarming. China’s industry research report network statistics show that China’s car networking market has reached 11.44 billion US dollars (about 75.5 billion yuan) last year; in 2025, this number is expected to reach 216.2 billion US dollars (about 1.4 trillion yuan), accounting for the world 1/4 of the market.
In this context, MLCC is increasingly in short supply. China’s large-scale industry research organization “Bosi Data” statistics, last year, the global MLCC demand is 400 billion, the market space is about 10 billion US dollars. It is estimated that by 2020, the demand for MLCC will expand to 4.8 trillion, and the market space will reach $11.5 billion. Previously, there was even a small news in the industry: the increase in the MLCC produced by Murata would reach 50%-500% of “terror”.
According to the article “International E-Commerce”, Murata plans to increase its production capacity by increasing its production capacity by 320 billion yen in the fiscal year of 2018 (April-March next year), and this amount has reached a record high. Among them, they intend to increase the annual production of MLCC by 10%, but the increase in production capacity is not immediate, and it takes time for the construction and commissioning of the factory.
Therefore, Murata finally put the price adjustment on the agenda. They also plan to invest 29 billion yen (about 1.7 billion yuan) to build a new plant. It is expected to start construction in September this year and be completed in December next year.
We can foresee that the MLCC’s prosperity will continue to remain high in the next two years.
Post time: Dec-17-2018