Murata Plans to Invest About ¥1 Trillion, Targets Doubling Capacitor Sales by 2030
Key Facts
Murata announced on October 30 a plan to invest about ¥1 trillion during fiscal years 2026 to 2030 to expand production of multilayer ceramic capacitors, as it expects revenue from sales of the business to exceed twice its fiscal 2025 level by 2030. The target represents an increase in sales; the company did not announce that production capacity would double. Murata said the plan responds to growing demand for capacitors, including demand related to data centers. Growth drivers identified by the company include the expansion of AI applications in edge devices, mobility and robotics. In its announcement, it said it expects that "capacitor sales revenue in fiscal 2030 will exceed twice its fiscal 2025 level."
Murata is allocating the planned investment between about ¥350 billion for buildings and about ¥650 billion for production equipment. The expansion plan includes building new production facilities in Japan and Thailand, along with completing equipment at an existing plant in the Philippines. In Japan, construction of the Okayama building will begin in April 2027, with completion scheduled for the end of 2028. The production chips and materials building is planned for completion in 2030. Okayama investments target building a workforce of between 1,500 and 2,000 people by 2030.
The investment announcement followed strong first-half performance in fiscal 2027, with revenue for the six months ended September 30, 2026, rising 20.8% to ¥1.090764 trillion, compared with ¥902.778 billion in the same period. Operating profit rose 48.9% to ¥245.907 billion, while net profit attributable to owners of the company increased 40.6% to ¥186.152 billion. Basic earnings per share were ¥102.43 and diluted earnings per share were ¥102.40, compared with ¥71.77 for each in the same period. Murata prepared its results under International Financial Reporting Standards. Revenue in the capacitors category also rose 33.1% to ¥605.583 billion, with growth across applications including data centers, distributors and mobility.
Computer applications recorded faster growth, with revenue increasing 61.2% to ¥235.110 billion in the first half. The company attributed this to higher sales of capacitors, power units and batteries used in data centers. In its forecast for the year ending March 31, 2027, Murata raised its revenue estimate to ¥2.26 trillion from ¥2.11 trillion. It also increased its operating profit forecast to ¥520 billion from ¥430 billion, and net profit attributable to owners of the company to ¥396 billion from ¥338 billion. The company linked the higher forecasts to further growth in data center demand, higher factory utilization as production increases, and an improved product mix. It also raised its capital expenditure estimate for the fiscal year to ¥270 billion from ¥255 billion.
Murata shares fell about 5% to ¥6,547 in Friday, October 30 trading, although they remained well above their session lows. The decline came amid a broader retreat in Asian technology stocks and concerns about AI spending. The Nikkei 225 fell more than 2% on the same day. At the fiscal 2025 results conference, a Murata official said its estimate for sales growth in AI data center components had risen from about 30% to about 85–90%. The official said at the conference that the sustainability of this growth had not yet become clear. This caution reflects the backdrop to debate over the ability of AI-related demand to continue supporting spending on components.
The company's calendar includes its annual investor meeting for fiscal 2026 on November 30, 2026. Murata has also provisionally set February 2, 2027, as the date for announcing third-quarter results for fiscal 2026. Both dates come after the start of the five-year investment plan. The upcoming quarterly results will provide an update on the company's performance after it raised its annual forecast. Construction of the Okayama facility is due to begin in April 2027, with the building targeted for completion at the end of 2028.