Reuters cited a foreign investment report and pointed out that after interviewing large MLCC customers, the Japanese MLCC supplier has started negotiating with customers for price increases and requested an increase of 20% to 30%. Therefore, Murata’s rating is based on the original “ "Neutral" was upgraded to "Outperform" and simultaneously escalated the target price of another Japanese solar company.
Murata only announced last week that in order to respond to increased MLCC demand, its production subsidiary, Fukui Murata Manufacturing Co., Ltd. has already acquired land for construction. It plans to invest 29 billion yen to build a new MLCC plant. The new plant is scheduled to start construction in September this year. Finished.
Earlier, Murata also announced that it would expand production at the "Izumo Murata Manufacturing Co., Ltd." and a factory located in the suburbs of Manila, the Philippines. It is estimated that by the end of March 2020, Murata's MLCC production capacity will increase by 20%.
Murata’s plan to start a large-scale plant construction was mainly due to the increase in demand for future vehicles and fifth-generation mobile communications (5G). However, before the completion of construction, the MLCC shortage trend did not change and customer orders continued to flow in, so the market repeatedly transmitted Out Murata may increase the selling price to the client.