Report

PSA Technology: Why AI is More of a “Win” than a “Loss” for Japanese MLCC Makers

Analyst Pelham Smithers discusses why Japan’s MLCC makers are in the sweet spot to benefit from the AI boom. Consequently, Murata’s earnings should expand at +19% CAGR over FY25~FY27, with OPMs rising from 15% to 21%.
Underlyings
Murata Manufacturing Co. Ltd.

Murata Manufacturing is mainly engaged in the development, manufacture and sale of electronic components and modules in Japan, North America and certain other Asian and European countries. Co.'s products are sold mainly to electronics companies for use as components in telecommunication, computer, audio, video, automotive electronics and other electronic products. Co. is engaged in the development, manufacture and sale of electronic parts and related products, including components for capacitors and piezoelectric products, as well as modules products; the provision of welfare services, personnel services, education and training services, as well as the leasing and management of real estate.

Samsung Electronics Co. Ltd.

Samsung Electronics is engaged in the manufacture and sale of electronic goods, communication products, semiconductors, telecommunication equipment, home appliances and other similar products. Co.'s products are mobile phones, MP3 Players, DVD players, video equipment, including Blu-Ray, TVs and VCRs; household appliances, including microwave ovens, refrigerators, home air conditioners, washing machines, ultrasonic humidifiers, dehumidifiers, vacuum cleaners and other small electrical goods; audio equipment, including semiconductors, information systems, and computers; miscellaneous parts; other products, including automatic vending machines, refrigerated display cases and electric tools.

Taiyo Yuden Co. Ltd.

TAIYO YUDEN is a manufacturer mainly engaged in the electronic component business. Co. is involved in the manufacture and sale of electronic parts such as ceramic condensers, inductors, ferrite-applied components, ferrite cores, high frequency dielectric components, circuits modules, energy devices and composite ceramic applied components, among others. Co. is also engaged in the temporary staffing services, as well as consultation services for environmental measurement.

Walsin Technology Corporation

Walsin Technology is engaged in the manufacture and sale of electronic ceramics including multiple-layer ceramic chip, capacitor/array, chip-resistor and networks, radio frequency components, disc capacitor, inductor and chip fuse. Through its subsidiaries, Co. is also engaged in the manufacture and sale of semi-conductor, passive electronic components, electronic parts, film capacitors, noise filters, transformer, coils, rectifier diode and magnetic component; the provision of equity investment management and marketing services; and investment holding.

Yageo Corporation

Yageo is engaged in the manufacture and sale of passive components for electronic devices. Co.'s main products include precision resistor, capacitor, thin film chip resistor, thick film chip resistor, chip arrays, chip inductor, ferrite and multi-layer ceramic capacitors (MLCCs). Co.'s resistors and capacitor products are principally marketed under the "Yageo" and "Phycomp" brand names, and its ferrite is principally marketed under the "Ferroxcube" brand name. Co. carried out its operation in Taiwan as well as in other Asia countries, Europe and the United States.

Provider
Pelham Smithers Associates Ltd
Pelham Smithers Associates Ltd

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries. 

The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012. 

Analysts
Pelham Smithers

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