JAPAN FIRST TO MARKET

Research evidence excerpt

JAPAN FIRST TO MARKET

orsened, so we expect the capital expenditure cycle to continue expanding for several more years.

Examining the employment conditions DI, labor shortages remain at levels second only to the bubble era, but the recurring

margin has continued to reach new record highs since 2022, confirming growth in corporate earnings amid a major

normalization of the economy.

Electronic Components Sector (Akinori Kanemoto)

Component Data Deposition: Electronic component shipment statistics for April 2026: Strong

shipments of passive components led by capacitors, with a moderate recovery in connectors

We have analyzed the data on global electronic component shipments by Japanese makers for April 2026 announced by the

Japan Electronics and Information Technology Industries Association (JEITA) on June 30, 2026. In April 2026, total electronic

component shipment value was lower than expected for the season (-5% MoM), but capacitors drove growth and passive

components remained relatively firm. On a trendline basis, overall electronic components were flat, while passive components,

led by capacitors, continued to show a growth trend in yen terms and reached another record high in April after striking one in

March. In dollar terms, a moderate growth trend also continued. In addition to capacitors, connectors reached a record high in

yen terms and are showing a moderate recovery in dollar terms. Shipment value for other components shifted from a flat

growth trend to a downtrend. Further, production volume for dielectric ceramic electrode materials used in MLCCs recovered

MoM, and we expect this trend to continue. We maintain a bullish stance on Murata Manufacturing and Taiyo Yuden as our top

picks among MLCC stocks. Of the two, we prefer Murata Manufacturing.