2024-07-11

Japan's electronic parts makers boost capital spending by 5%

Japan's electronic parts makers boost capital spending by 5%

inset: The view under the hood of a Toyota Prius. As automobiles incorporate more electronic parts, component makers are boosting investment.   © Getty Images 
 


Advanced automobiles and AI lift demand for capacitors and other parts

 

 

YUKA KONISHI, KOSUKE TSUNODA and EISAKU NITTA, Nikkei staff writers.
July 11, 2024 04:53 JST


TOKYO/KYOTO, Japan -- Japan's electronic components makers are boosting capital spending by 5.4% this fiscal year, as automobiles continue to incorporate more electrical parts for everything from hybrid drivetrains to advanced driver-assistance systems.

 

Based on investment plans of 32 companies -- including Murata Manufacturing, TDK and Kyocera -- compiled by Nikkei, total spending was expected to reach 1.4 trillion yen ($8.7 billion) in fiscal 2024, a 46% increase from four years ago. Of these companies, 19 were planning to boost spending.

 

Passive components such as capacitors and coils are at the center of the investments, accounting for 60% of the total. Investments in this area are on pace this year to reach 867.2 billion yen, continuing the high level of fiscal 2023.

 

In particular, companies are investing in multilayer ceramic capacitors (MLCCs) that temporarily store and discharge electricity and remove noise that can lead to malfunctions. In general, about 1,000 MLCCs are used in a smartphone, 5,000 in a gasoline car and 10,000 in an electric vehicle.

 

Japanese companies dominate the global market for these devices. Murata Manufacturing has the largest share in automotive MLCCs, with TDK and Taiyo Yuden also in the top five. With South Korean and Taiwanese companies also on the rise, Japanese companies are looking to maintain market share by keeping capital investments up.

 

Murata Manufacturing is planning 190 billion yen in capital investments this year. It is increasing production capacity of automobile MLCCs by 10% each year.

 

It will also invest in new production facilities in Japan's Shimane prefecture and the Philippines, as well as a development center in Fukui prefecture, Japan, that is scheduled to start operations in April 2026.

 


source: asia.nikkei.com