Murata has a 40% share of global ceramic capacitors, ranking first. In Murata's production, Japan's electronic component maker Taiyo Yuden has also begun to raise prices to some customers, and the trend of price increases is expected to expand. This may become a factor in the rise in smartphone prices.
The background of supply and demand of ceramic capacitors is the full popularity of next-generation technologies such as 5G. 5G is the foundation of the "Internet of Things (IoT)" and will be commercialized in the US and Japan after 2019. Mobile operators and other companies will invest heavily in equipment. It is estimated that with the popularity of 5G, the connected car market will increase to three times by 2022, reaching about 17 trillion yen.
However, Murata’s products are mostly used in apples.Huawei, ZTE and other smart phones. Affected by the Sino-US trade war, smartphone parts are centered on high-end models, and there is a risk of reduced supply. If the trade war is long-term, it may affect the price increase negotiations.
Since the end of June, Murata has started negotiations with customers such as home appliances and auto companies, and hopes to complete the price increase in 2018. The specific increase is different due to sales volume and product.