Component Signals: MLCC production: Maintain Buy on Murata and TDK on solid earnings support

Research evidence excerpt

Component Signals: MLCC production: Maintain Buy on Murata and TDK on solid earnings support

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Component Signals

MLCC production: Maintain Buy on Murata

and TDK on solid earnings support

Price Objective Change

19 May 2026

Impact of front-loaded orders became evident in Jan-Mar Equity

According to METI statistics, domestic ceramic capacitor (MLCC) production value in Japan

March 2026 declined 9% YoY and increased 14% MoM. While orders for AI servers Electronics

continue to expand, front-loaded orders likely persisted in the IT equipment market,

reflecting concerns over future price increases and material shortages. As a result, MasashiResearch AnalystKubota >>

product mix rather deteriorated. The overall ASP in March declined 23% YoY, marking a BofAS Japan

+81 3 6225 7138

significant decline for three consecutive months. Meanwhile, production volume masashi.kubota@bofa.com

increased 18% YoY and 12% MoM, which we believe contributed to higher utilization Hazel Xue >>

rates at each company. Research Analyst

BofAS Japan

hazel.xue@bofa.com

S/D balance to improve on rising high-end demand

Given that the BB ratio of major MLCC makers exceeded 1.3 in Jan-Mar 2026,

production value from Apr to Jun onward is highly likely to improve. We think a

reactionary decline from front-loaded orders, mainly for the IT equipment market, could

occur. However, production volume of small, high-capacitance and high-voltage products Exhibit 1: Maintain Buy on Murata/TDK

for AI servers is increasing, and utilization rates are rising, particularly in front-end PO of MLCC makers

processes. With tightening supply demand balance, price trends should also stabilize. Price Objective Last

Yen May 19

Maintain Buy on Murata Mfg and TDK Old New ¥