Murata Manufacturing Co., crucial supplier of iPhone components, is thinking about shifting some production to India, with global supply chains redistributing along the populous nation's paths. The Kyoto-based company, known for Multilayer Ceramic Capacitors, has stated that it is considering investment to meet increasing demand in India.
Nakajima said, “We’ve been making our newest capacitors mostly in Japan, but customers are asking us to manufacture more overseas due partly to business continuity planning purposes".
Murata's capacitors help serve the electronic applications of Apple and Samsung smartphones, Nvidia servers, and Sony game consoles. Presently, 60% of its MLCCs are produced in Japan, but this will be reduced to an estimated 50% over some years.
Nakajima added, “There’s growing consumer demand for electronics in the country, and we also should be ready to respond quickly when India introduces new incentives to encourage domestic manufacturing.”
Apple has been moving production out of China, including production trials of AirPods in India. Also, Chinese smartphone makers are giving more focus to India because of its great workforce and large consumer market. So, Murata has also rented a factory space in OneHub Chennai Industrial Park, Tamil Nadu, formalized with a long-term rental rate expected to aid testing of the longer demand consideration before further investment in a factory. The facility will package and ship the capacitors in April 2026.
Murata, however, is not presently considering establishing manufacturing facilities in America, with capacitors going principally into products assembled in Asia. While global smartphone shipments are projected to grow only a few percentages year on year, demand for AI-driven servers is assumed to be increasing, and the stock of Murata has already gone up by 15% since February.