Murata Announced That Some Of Mlcc's Products Were Reduced By 50% And The Price Was Rising.

Today (March 2), Murata issued a circular stating that it will reduce the production capacity of "old product groups" with miniaturized alternatives to 50% by 2017 and will continue to reduce the production capacity in the future. In addition, Part of the product price adjustment.

Murata said that as a result of the large increase in overall demand, Murata must focus its resources to increase production on small-sized apex and high-performance products with high market demand and difficulty in production. For the "old product group" that already has miniaturized alternatives, Murata will have to Cut its production capacity to 50% by 2017 and will continue to reduce its production capacity in the future.

In addition, orders from "old product groups" such as "high dielectric constant of size 0603/0805 and capacitance below 1uF" continue to be concentrated in Murata as other MLCC manufacturers continue to raise prices. As a result, Murata's production capacity adjustment is struggling.

As a result, Murata intends to adopt a plan to miniaturize, certify multiple suppliers and transfer orders to Taiwan for MLCC manufacturers with a view to achieving a reduction in "old product group" orders.

To strengthen the control over the "old product group" orders are too concentrated and so on, with immediate effect, Murata will proceed with the implementation of the initial price adjustment for the following products, the new order price will be March 2, 2018 come into force.

At present, MLCC's major global suppliers include Murata, TDK, Taiyo Yuden, Kyocera, Matsushita, Giant, Huasinke and Fenghua Hi-Tech. Japanese manufacturers occupy most of the production capacity. However, since the second half of 2016, Japanese manufacturers such as Murata, Taiyo Yuden, TDK, and others plan to phase out medium- and high-capacity MLCC products for medium and low-end applications due to automotive, industrial and iPhone needs.

Prior to Murata, Japanese maker Kyocera first announced the discontinuation of some specifications. In early February, Japanese maker Kyocera Co. announced that it will discontinue the production of the 104,105-size MLCC at size 0402,0603 by the end of February, all of which are the largest ones in the market, with the most market and the largest consumption.

Earlier, TDK, which accounted for 7% of MLCC's global market, also announced a fade-out MLCC in 2016.

The gradual withdrawal of Japanese manufacturers, new capacity in Taiwan and the mainland but failed to open in time, coupled with the surge in market demand, resulting in 2017 MLCC market in a tight supply throughout the year, Giant, Fenghua Hi-Tech and other MLCC manufacturers have gone through the number Round prices, Fenghua Hi-Tech President Wang Jinquan with "crazy" to describe the MLCC price situation.

Moreover, in order to strengthen the control over the "old product group" orders are too concentrated and so on, with immediate effect, spacious Division will start the implementation of the following products for the first time price adjustment, thank you for your understanding and cooperation.

Target Product: Murata MLCC 0603/0805 Size High Dielectric Constant Capacitance 1uF or less

New Price: Please refer to the attachment

New Price Effective Date: March 2, 2018 Order Price.

We apologize for the inconvenience caused. Hope you understand and support.

wish

Regards

Murata (China) Investment Co., Ltd.

President: Maruyama Ying Yi

March 2, 2018