Murata starts packaging ceramic capacitors at its Chennai facility, strengthening India’s electronics supply chain. Plant to serve smartphone, EV & industrial sectors.
Japanese Giant Ships First Batch of Ceramic Capacitors from Tamil Nadu Plant
Murata Launches First Indian Facility in Chennai, Marking Strategic Shift in Global Supply Chains
Chennai, August 11, 2025 – Murata Manufacturing the Japanese electronics component leader supplying 40% of the world’s multilayer ceramic capacitors (MLCCs), has commenced packaging and shipping operations from its new 3,500 sq. m. facility at OneHub Chennai. This marks Murata’s first production footprint in India, aligning with the country’s push for electronics self-reliance.
Key Details of the Chennai Facility
🏭 Focus: Packaging & testing of high-end MLCCs
📱 Key Applications: Smartphones (5G/Wi-Fi 6), EVs, industrial automation
🌍 Supply Chain Role: Complements Murata’s factories in Japan, China, Philippines
Why This Plant Matters for India?
1. Filling Critical Component Gaps
🔹 MLCCs are essential for 90% of electronic devices
🔹 India currently imports $1.2B worth annually (mostly from China/Japan)
🔹 Local supply cuts lead times from 8 weeks to 10 days
2. Strengthening Key Industries
| Sector | Impact | Potential Customers |
|---|---|---|
| Smartphones | Supports Apple/Tata’s iPhone 17 plans | Foxconn, Tata Electronics |
| EVs | Enables faster power electronics | Tata Motors, Ola Electric |
| Defense | Reduces import dependency | BEL, DRDO |
3. Tamil Nadu’s Electronics Ambitions
📈 3rd major component plant after Samsung SDI & TDK
🏭 Aligns with state’s $5B electronics export target by 2027
Leadership Perspectives
TRB Rajaa, TN Industries Minister:
“Murata’s entry cements Tamil Nadu as India’s electronics nucleus. We’re now negotiating wafer fab investments.”
Murata India Spokesperson:
*”This is Phase 1—packaging imported capacitor cores. Full-fledged manufacturing may follow based on PLI incentives.”*
Market Context
Global MLCC Demand
💡 $18B industry growing at 6% CAGR
📱 Each smartphone uses 800-1,200 MLCCs
⚡ EVs require 5,000-8,000 units/vehicle
India’s Opportunity
🇮🇳 Local Demand: 45B units/year (2025)
🔌 Import Substitution: 30% potential by 2028
Operational Roadmap
📦 Phase 1 (2025): Packaging & testing (20M units/month)
🔬 Phase 2 (2026): Localized material processing
🏗️ Phase 3 (2027): Full manufacturing (subject to PLI 2.0)
Investor Takeaways
💡 Watch: Murata’s tech transfer to Indian partners
💡 Opportunity: Ceramic slurry suppliers for localization
💡 Risk: Geopolitical factors affecting core imports
The Bigger Picture
🔌 India’s Component Ecosystem:
- Murata joins Foxconn, Pegatron, Salcomp in Tamil Nadu
- PLI for IT Hardware driving $3B+ investments
🌏 Global Trends:
- China+1: 60% of Murata’s sales outside China
- Automotive Shift: EV MLCC demand to triple by 2030
Final Thoughts
While starting with packaging, Murata’s Chennai plant is a strategic beachhead—one that could evolve into full-scale production as India’s electronics ecosystem matures. For iPhone makers and EV startups alike, this means fewer supply chain headaches in the years ahead.
