Murata expects sales decline in MLCC

Japan’s Murata Manufacturing expects sales from multi layer ceramic capacitors (MLCC) to decline in the second half of the 2020 fiscal year.

The world’s largest MLCC maker said sales will decline 3% compared to the first half of the 2020 fiscal year, or between April to September, in the period from October to March.

This contrasts with the 16% surge in MLCC sales between July to September period compared to the April to June period.

Murata posted its highest sales from MLCC in two years in the July to September period by posting 156.1 billion yen in sales. The quarter saw worldwide demand for MLCC demand recover from easing of lockdown measures following the COVID-19 pandemic.

Huawei’s buildup of inventory prior to US sanctions taking effect and rising orders from other smartphones vendors during the quarter also helped Murata’s performance.

The Japanese company said stay-at-home trend and demand from PCs and automobiles also boosted sales of MLCC in the quarter.

Sales in MLCC from the April to September period grew 5.5% year-on-year, the company said.

In contrast to Murata, South Korea’s Samsung Electro-Mechanics, the world’s second largest MLCC maker, said it expected demand for the fourth quarter of 2020 to remain the same as the third quarter.

Samsung said oversea customers are planning to launch new flagship smartphones and new gaming consoles in the fourth quarter, while demand from auto-component applications is expected to continue to recover.

MLCC shipment in the fourth quarter will increase slightly from the third quarter while average sales price will remain the same, Samsung said.

Taiwan’s Yageo, the world’s third largest MLCC maker, had said last month that it saw sales rise 113% year-on-year in the third quarter. The company said the fourth quarter remained uncertain from the COVID-19 pandemic and the US-China trade war.