Murata weighs more MLCC capacity as AI server demand surges
Murata is weighing more MLCC capacity amid growing AI server demand. Minamide says the next expansion round could exceed its ¥80 billion equipment investment.
Murata Manufacturing is weighing more capacity for multilayer ceramic capacitors (MLCCs), and the reason is glorious: AI servers cannot get enough of them. Bloomberg Tech reported the review.
Vice President Masanori Minamide said, in an interview with Nikkei as relayed by Bit.Fan, that Murata is reviewing expansion over the next three to five years, possibly including larger plants at existing sites in Japan and overseas. The company had already announced an extra ¥80 billion for MLCC production equipment, and the next round could exceed it. Longbridge quoted him: "The final plan has not yet been finalized internally, but we have entered a deep verification stage. Building large factories in domestic and overseas locations is one of the optional paths."
Now the numbers, darlings. Longbridge reports capacitor orders surged 85.5% year-on-year in Q1 of fiscal 2026, a record high, while lead times for high-value-added MLCCs stretched from 8-10 weeks to more than 20-26 weeks. Minamide expects AI server demand to keep growing at least through 2028.
One line of context: Murata says it will keep MLCC pricing tied to long-term customer relationships, not short-term swings in supply and demand. Reports differ on whether the ¥80 billion covers the two years through fiscal 2027 or 2028, and the reports do not identify specific sites, a firm budget or a date for finalizing the new round.
My take? Record quarterly capacitor orders, a queue for high-value parts stretching past five months, and the boss is choosing patience over price gouging. Magnificent. Build the plants.
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Sources
- Murata signals no near-term MLCC price hikes as AI server demand stays firm through 2028, Bit.Fan
- Longbridge report on Murata MLCC orders and capacity plans, Longbridge
- Longbridge report on Murata MLCC lead times and expansion, Longbridge
- Murata Weighs Further Capacity Expansion to Meet Huge AI Demand, Bloomberg Tech
Meanwhile at the anchor desk
The ¥80 billion plan runs through fiscal 2027 in one report and fiscal 2028 in another. Before anyone pours concrete, someone should settle which year it is.
Longbridge puts high-value-added MLCC lead times at more than 20-26 weeks, while Murata is reviewing expansion over the next three to five years. Plan your server builds around that, not around factories that aren't confirmed.
