According to Nikkei News, electronics parts major Kyocera will invest 15 billion yen to build a new plant in its Kagoshima Prefecture factory site in order to increase production of MLCCs.
According to the report, the new plant will increase the production of capacitors for high-speed 5G communication devices, which is then expected to increase its MLCC production capacity by about 20%, and is expected to increase MLCC revenue to 200 billion yen in FY2025, twice as much as in FY2021. It is reported that construction of the new plant will begin in spring 2023 and production is expected to start in 2024.
Smartphones use a large number of MLCC parts, with an average of about 1,000 MLCC products per phone, and the demand for MLCCs continues to expand with the spread of 5G communications and the increase in automotive communications equipment. Among the MLCC manufacturers, Kyocera mainly produces small and large-capacity MLCCs.
In 2020, Kyocera will invest approximately 100 billion yen to fully subsidiary Kyocera AVXComponents, a manufacturer of MLCCs. Then in 2021, Kyocera will increase production of MLCCs in Thailand.
Previously, in response to the surge in demand for components related to semiconductors and electric vehicles, Kyocera said it would invest 450 billion yen over three years from 2021 to expand its production facilities in Japan, Southeast Asia and other locations to expand its supply capacity. It is also considering investing in Thailand and increasing production of electronic parts such as crystals.
In April this year, Kyocera Group Chairman Hideo Tanimoto said to the public that Kyocera will invest 62.5 billion yen in a new factory in Kawauchi, Kagoshima, Japan, due to the current rising demand for 5G and data centres.
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