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Japanese Capacitor Manufacturing giant Murata shifts out of China

Akshay Narang by Akshay Narang
January 11, 2022
in Indo-Pacific
Reading Time: 3 mins read
5
China, China's, capacitors, Murata, Thailand, capacitor, Manufacturing
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Japan wants to demolish China’s hegemony in the global electronics market. Recently, Tokyo invited semiconductor manufacturers from around the world to set base in Japan. With this, Japan is moving towards absolute control of the global semiconductors supply and is likely to imperil China’s consumer electronics industry that is heavily dependent on semiconductor imports. 

Japan is targeting a new sector- capacitors. Currently, China is the world’s largest producer of capacitors. But this is set to change, as a Japanese capacitor manufacturing giant has decided to shift production out of the Communist country.

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Why capacitors are important? 

Capacitors are devices that store electrical charges. They have various uses including energy storage, power conditioning, signal coupling or decoupling, electronic noise filtering, and remote sensing. 

In the smartphones industry, they are used for various purposes like maintaining constant voltage, providing ‘boost’ power when the phone is about to discharge and dissipating stored energy to function as a temporary power source for some time. 

Japan’s Murata to shift out of China 

Murata Manufacturing is looking to cut its dependence on China amidst the ongoing US-China standoff. 

Murata is the largest capacitor maker in the world. It supplies parts to the iPhone as well. The company supplies smartphones devices like filters for picking up some radio signals, amplifiers for strengthening transmission signals and duplexers for managing incoming and outgoing signals. 

Murata’s operations in China helped the Communists become a leader in the capacitor market. But now the Japanese capacitor giant is looking to move to Thailand to open a new plant in the Southeast Asian country in October 2023. 

Why Murata is moving to Thailand? 

As per Nikkei Asia, Murata President Norio Nakajima said that the new plant in Thailand will be expanded. Eventually, it will become as big as one in Wuxi, near Shanghai, where Murata produces multilayer ceramic capacitors for consumer electronics. 

Murata Manufacturing is adapting to evolving geopolitical equations and changing business conditions. Presently, Murata is dependent on China for over half of its revenue. But the capacitor maker expects China’s shares in its revenues to go down, as the company looks towards the Indo-Pacific for future growth. 

Norio Nakajima said, “There is a risk of events happening beyond our control.” The Murata President took the example of an uncertain event like the US imposing a technology ban on China. So, it makes sense for Murata to run out of the Communist country before any such thing happens. 

He added, “It is imperative to diversify our supply chain.” Nakajima also pointed out that its key customers like Apple are also looking beyond China. This destroys the basic advantage that China had. A supplier would ideally want to stay close to its customers. And if the customers themselves start shifting out of a particular location, then there is no use staying in that location. 

China’s declining stature as a manufacturing hub

Also, China is losing the advantage of cheap labour and a huge working class with its changing demographics. The Murata President said, “The most populous country today may be China, but in 2030 that will be India, and further down the road it will be Africa.” 

He added, “Will those economies be aligned with China or the U.S.? We don’t know. We should be able to respond to both scenarios.”

China’s population is contracting at an alarming pace. It is estimated that China could see its population getting halved within the next 45 years. A slow birth rate of 1.3 and higher life expectancy is ensuring that China is ageing quickly. 

By 2050, 39 per cent of the Chinese population will be above the retirement age. This will take away the driving factor behind China’s manufacturing prowess- cheap and ample labour. So, multinational corporations and manufacturing giants like Murata see no sense in persisting with Beijing and are shifting production out of the Communist country. 

Tags: CapacitorsCCPChinaFumio KishidaJapanMurataNorio NakajimaShort takesThailandXi Jinping
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Comments 5

  1. Avatar JM CH says:
    1 year ago

    Murat is the largest producer of capacitor in the world? Lol….who are you trying to fool?
    Table 2: Top 12 Global Supercapacitor and Ultracapacitor Manufacturers
    Company Country
    1 Cellergy USA
    2 Ioxus USA
    3 Maxwell Technologies USA
    4 Murata Manufacturing Japan

    Reply
    • Avatar Paumanok says:
      1 year ago

      Murata Manufacturing Company is the world’s largest capacitor manufacturer. I have provenance on the subject through Industrial Blockchain on HTS 8532 and 8533.

  2. Avatar JM CH says:
    1 year ago

    Further to my earlier comment to your lies, have Murata TOALLY shifted out of China? Here is the actual news….” Murata said in November 2021 that it will open a new plant in Thailand in October 2023. In an interview with Nikkei Asia, Murata President Norio Nakajima said the new plant will eventually be expanded to become as large as the one in Wuxi, near Shanghai, where Murata produces multilayer ceramic capacitors for consumer electronics”.
    Meanwhile bear in mind Murata had previously opened / expanded its second manufacturing plant in Wuxi, China on October 2020! So is Murata going to close them now? LMAO!! Your lies are getting blatant & ridiculous!!

    Reply
    • Avatar Akma says:
      1 year ago

      Nowadays reporters of anti China wrote many false reports or reporting false news. This report is similar in shape to the report about Bridgestone. They said Bridgestone is closing their Chinese plant and open up a new plant outside of China is the prove that foreign company shifting out of China but further investigation from me found that it’s true that Bridgestone closing a plant in China but they did that bcus they wanted to focus and optimise all the tyre production into one plant in China. They have two plants in China. Tbh TFI always came up with a report that they didn’t understand.

    • Avatar Paumanok says:
      1 year ago

      China has large scale indigenous production of MLCC at Tiger Feng Hua; meanwhile Yageo and Walsin also have major production in PRC. China also competes most effectively in AC and DC plastic film capacitors, where Xiamen Faratronics is a global leader; and in aluminum electrolytic capacitors, where manufacturers such as Aishi and ManYue are major global players now as well. The PRC government set quotas in hard to produce electronics such as high cap BME MLCC and molded tantalum chips, and these were satisfied through transplants, with Murata being the largest manufacturer in country of MLCC. Having said all that it looks like China is expanding in countries outside of Japan and in Japan, they have not announced any plans at all regarding their PRC operations. But they have always relied heavily on many countries in SE Asia. The only factory they ever really abandoned was in State College PA USA.

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