The Indian market presents a rapidly growing electronics sector, supported by government-backed incentives, which has piqued Murata's interest despite concerns over infrastructure and component sourcing.

While Murata is making strides in India, the company has no current plans to establish manufacturing facilities in the US, as most of its capacitors are used in products assembled in Asia.

To gain operational experience, Murata has leased a factory in OneHub Chennai Industrial Park, with plans to begin capacitor packaging and distribution by April 2026.

Analysts suggest that the growing demand for MLCCs, particularly in AI and electric vehicles, could significantly enhance Murata's long-term profitability, given its leading market share.

Murata Manufacturing, a prominent Japanese company, is exploring the possibility of relocating some of its production capacity to India in response to the increasing demand for multilayer ceramic capacitors (MLCCs).

India's large workforce, rising domestic demand, and favorable manufacturing policies position it as a viable hub for global tech firms, including Murata.

This interest aligns with Apple's recent record quarterly sales in India, where the iPhone emerged as the top-selling smartphone during the last quarter of 2024.

In addition to production plans, Apple is expanding its retail presence in India, with plans to open four new stores in major cities such as Bengaluru and Mumbai.

However, Apple faces increasing regulatory hurdles in China, including device usage restrictions for government officials and stringent AI regulations that necessitate partnerships with local firms.

Murata's stock has surged approximately 15% since early February, driven by robust growth expectations in the AI server market, which is anticipated to expand significantly.

Despite these positive trends, Murata remains cautious about potential US tariffs and their indirect effects on consumer goods prices, which could impact orders for capacitors.

China's export restrictions on critical materials and high-tech equipment further complicate the operational landscape for Apple suppliers like Murata in India.