Murata's ¥1 Trillion MLCC Investment: Who Supplies the Build-Out
Summary
Murata will spend ¥1 trillion over five years to more than double MLCC sales, with ¥650 billion going to equipment first; barium titanate and coater suppliers sit upstream.
Murata Manufacturing (6981.T) announced on October 30, 2026 that it will invest ¥1 trillion over five years to expand multilayer ceramic capacitor (MLCC) production, Nikkei reported. The first orders from this MLCC capacity investment may reach upstream suppliers that build coating equipment and sell ceramic powder. [1]
According to the report, about ¥350 billion goes to new buildings and about ¥650 billion to equipment at existing plants. [1] Murata aims to more than double MLCC sales from over ¥900 billion in the fiscal year ended March 2026 by the fiscal year ending March 2031. [1]
Two new buildings in Okayama, costing about ¥150 billion, will produce both MLCCs and ceramic raw materials. [1]
On the day, Murata shares fell 7.72% to ¥6,358, while the Nikkei 225 fell 2.12%. [2]
What an MLCC is and how it is made
An MLCC is the most common small component on a circuit board. It stores and releases charge and keeps voltage stable.
Each MLCC stacks hundreds of ceramic layers between metal electrodes. The main material in the ceramic layers is barium titanate powder, made from high-purity barium carbonate. A factory first casts ceramic slurry into thin films, called green sheets, then prints electrodes, stacks the layers and fires them.
Murata holds about 40% of the global MLCC market and more than half of the high-end products used in AI servers. [1] This year AI-server demand led makers including Murata and Taiyo Yuden (6976.T) to raise prices on high-end AI-server and automotive MLCCs by 15% to 30% [3], and lead times on some products stretched to 61 weeks [4].
From equipment orders to ceramic powder volume
The first step is equipment. The ¥650 billion is spent first at existing plants, so orders for coating, firing and inspection tools may appear over the next two to six quarters, ahead of any change in output.
The second step is materials. Murata is not the only maker adding capacity: on its October 30 earnings call, TDK (6762.T) said it plans to raise MLCC capacity by 20%. [5] More layers and more output mean more barium titanate and high-purity barium carbonate.
There is an offset. Murata's new Okayama buildings will make ceramic raw materials in-house [1], so part of Murata's added powder demand will not reach outside suppliers.
The third step comes after 2028. Once the new capacity lands, the shortage may ease and part of this year's price increases may reverse. Capacitors account for 70.9% of Taiyo Yuden's revenue [6], and its shares fell 7.34% on October 30 [2].
Companies that may be affected
Nippon Chemical Industrial (4092.T)
The company makes barium titanate and high-purity barium carbonate. TDK is a customer at 16.8% of revenue, and Murata is also on its customer list. [7] It is expanding its electroceramic materials capacity for AI servers to about 1.5 times the current level, with start-up planned for fiscal 2027. [8]
In the fiscal year ended March 2026 it reported revenue of ¥40.2 billion and operating profit of ¥2.42 billion; electroceramic materials were about 21.7% of revenue in the prior fiscal year. [6] On a rough estimate, the added capacity could bring ¥3 billion to ¥4 billion of revenue and profit equal to 35% to 40% of annual operating profit; the margin used in that estimate is an assumption.
Sakai Chemical Industry (4078.T)
Its electronic materials business sells barium titanate and high-purity barium carbonate for MLCCs, with revenue of about ¥11.4 billion in the fiscal year ended March 2026, or 13.7% of total revenue of ¥81.4 billion. [9][6] Murata is a customer. [7]
It may benefit from capacity additions at TDK and other makers, and it may also lose some orders as Murata makes its own raw materials [1]. The effect would show in volume and profit at its electronic materials segment.
Hirano Tecseed (6245.T)
The company builds coating and film-forming equipment that can be used to form MLCC green sheets. In the first quarter of fiscal 2026, its chemical-machinery orders rose to ¥5.602 billion from ¥309 million a year earlier, and management attributed the rise to AI-server-driven demand for MLCC, circuit-board and semiconductor equipment. [10]
Its full-year plan calls for revenue of ¥25.0 billion and operating profit of ¥1.5 billion. [10] The company does not disclose the MLCC share of those orders, and Murata builds much of its own equipment, so orders are more likely to come from other MLCC makers. Later disclosures will have to show this.
How to test the chain
On November 9, Sakai Chemical reports first-half results. The key lines are electronic materials segment revenue and any barium titanate capacity decision.
On November 12, Nippon Chemical Industrial reports first-half results. The key lines are electroceramic sales and progress on its Fukushima barium titanate expansion; if that revenue is flat or down, the chain does not hold.
In early November, Hirano Tecseed reports second-quarter orders; the test is whether chemical-machinery orders stay above ¥3 billion a quarter; a fall back to the ¥0.3 billion to ¥1 billion range would break the equipment link.
Two other developments would also break the chain: Murata or TDK disclosing that all new capacity runs on in-house or joint-venture barium titanate, or cuts to AI capital spending and sharply shorter lead times leading Murata to slow its roughly ¥200 billion a year of spending. Nikkei's report already flags over-investment and interest-rate risk. [1]
This piece only helps surface transmission chains that may be overlooked. It is not a stock recommendation.
Sources
[1] Nikkei · 2026-10-30 · 村田製作所、コンデンサー生産に5年で1兆円投資 AI向け需要見据え · https://www.nikkei.com/article/DGXZQOUF264B10W6A021C2000000/
[2] Drillr price_volume_history · 2026-10-30 · Daily prices for 6981.T, 6976.T, 4092.T, 4078.T, 6245.T and the Nikkei 225 · Market data
[3] AAStocks · 2026-08-04 · Murata, Taiyo Yuden and Samsung Electro-Mechanics raise high-end AI-server and automotive MLCC prices by 15% to 30% · https://www.aastocks.com/tc/stocks/news/aafn-con/NOW.1536512/latest-news/AAFN
[4] Digitimes · 2026-10-23 · Samsung Electro-Mechanics faces MLCC lead times of up to 61 weeks · https://www.digitimes.com/news/a20261023VL202/semco-mlcc-ai-server-2027-demand.html
[5] Drillr earning_call_summary · 2026-10-30 · TDK (6762.T) fiscal 2026 Q2 earnings call · Call summary
[6] Drillr company_segment and financial_statements · Fiscal 2026 · 6981.T, 6976.T, 4092.T, 4078.T, 6245.T · Company financial data
[7] Drillr company_relationship · 2026-10-30 · Customer relationships for 4078.T and 4092.T · Company data
[8] MONOist · 2026-08-20 · 生成AI普及が追い風に、日本化学工業がMLCC向け材料を増産 · https://monoist.itmedia.co.jp/mn/articles/2608/20/news019.html
[9] kabuyoho.jp · 2026-10-30 · Sakai Chemical (4078) products, segment mix and next results date · https://kabuyoho.jp/reportTop?bcode=4078
[10] Hirano Tecseed · 2026-08-05 · Fiscal 2026 Q1 results presentation (TDnet) · https://www2.jpx.co.jp/disc/62450/140120260805510128.pdf