Japan’s Leading iPhone Component Supplier Expands to India
Kyoto-based Murata Manufacturing Co., a leading supplier of multilayer ceramic capacitors (MLCCs) used in iPhones, is considering shifting part of its production to India. With growing demand for electronic components and Apple’s supply chain diversification beyond China, Murata is taking strategic steps to establish a presence in India.
Murata’s Expansion Plans in India
Murata has leased a facility at OneHub Industrial Park in Chennai to package and ship ceramic capacitors starting in April 2026. This move, backed by a $6.6 million investment, is aimed at evaluating India’s long-term demand before committing to a full-scale integrated production facility.
Key Highlights of Murata’s Investment in India
- ✔ Strategic Location: The company has secured space in Chennai’s OneHub Industrial Park, a growing hub for electronics manufacturing.
- ✔ Focus on Packaging and Shipping: Initial operations will not involve full-scale manufacturing but will instead focus on logistics and demand forecasting.
- ✔ Future Growth Potential: If India’s infrastructure, including power and supply chain logistics, improves, Murata may expand manufacturing operations.
- ✔ Customer Demand: Apple and other major clients are urging more overseas production for business continuity.
Why Murata is Moving to India
Murata’s decision to shift part of its operations to India aligns with a global supply chain realignment driven by:
1. Apple’s Manufacturing Shift
Apple has been gradually moving production away from China, starting trial production of AirPods in India. With Apple expanding its assembly and supplier base in India, component makers like Murata see a strong business case for localizing production.
2. Rising Consumer Demand for Electronics in India
India’s electronics market is rapidly growing, with increasing demand for smartphones, laptops, and AI-powered devices. Murata’s investment ensures it is well-positioned to serve local and international clients.
3. Indian Government Incentives for Manufacturing
The Indian government has introduced production-linked incentives (PLI) to boost domestic electronics manufacturing. Murata is monitoring these policies to determine the best time to expand production further.
Challenges in Expanding Full-Scale Production in India
Despite its interest in the Indian market, Murata’s President Norio Nakajima emphasized that building an integrated production facility is not feasible at the moment due to:
- ✔ Infrastructure Limitations: Power supply and manufacturing ecosystem gaps need to be addressed before large-scale production can begin.
- ✔ Early-Stage Investment: The company wants to assess market demand before committing further capital.
Impact of US Tariff Concerns on Murata’s Strategy
Murata is also adjusting its supply chain in response to potential US tariffs on global trade. If tariffs increase, higher costs on consumer electronics could reduce capacitor orders. By expanding into India, Murata aims to diversify production and mitigate trade risks.
Murata’s Role in the Global Electronics Industry
Murata dominates the global market for MLCCs, essential for regulating power in electronic devices. These capacitors are used in:
- ✔ Apple iPhones & iPads
- ✔ Samsung & Android smartphones
- ✔ Nvidia AI servers
- ✔ Sony PlayStation & gaming consoles
Currently, 60% of Murata’s MLCCs are manufactured in Japan, but this share is expected to decline to 50% as production shifts abroad.
Conclusion: India’s Growing Role in the Global Supply Chain
Murata’s decision to invest in India marks another step in India’s emergence as a global electronics manufacturing hub. With Apple expanding production, government incentives, and a booming consumer electronics market, India is poised to become a key player in the global supply chain. If infrastructure challenges are addressed, full-scale capacitor production in India could become a reality, benefiting both Murata and the broader electronics industry.
