Notification on Expansion of Production Capacity of Surface Acoustic Wave Filters

Notification on Expansion of Production Capacity of Surface Acoustic Wave Filters

2/5/2013

Murata Manufacturing Co., Ltd.

President/Statutory Representative Director: Tsuneo Murata

Overview

Kanazawa Murata Manufacturing Co., Ltd., a wholly owned subsidiary of Murata Manufacturing Co., Ltd., will be expanding its production capacity for surface acoustic wave filters (hereinafter SAW filters) * at the head office (Kanazawa Office: Hakusan City, Ishikawa Prefecture) and Sendai Plant (Sendai City, Miyagi Prefecture) .

Background and Detail

A significant increase in the demand for components is highly anticipated in coming years because of the rise in the number of mobile phones in newly emerging markets such as China and India and the growing popularity of smartphones mounted with a large number of components. To respond to this market situation, Kanazawa Murata Manufacturing will be expanding the production capacity of SAW filters, which is a key component of mobile phones, at both the head office (Kanazawa office) and Sendai Plant.

Until now, the Sendai Plant had carried out only the downstream processes of SAW filter production. Kanazawa Murata Manufacturing will make an investment to increase production at the Sendai Plant to allow it to perform integrated manufacturing from the upstream through downstream processes. This undertaking will further enhance the two-manufacturing-base framework of the head office (Kanazawa office) and Sendai Plant and will secure a stable supply of SAW filters for our customers.

Terminology

*Surface acoustic wave filters (SAW filters) :

A surface acoustic wave (SAW) is an acoustic wave that propagates along the surface of a material. A filter that utilizes this characteristic is a SAW filter. SAW filters are miniature in size and lightweight, which are significant advantages for achieving miniaturization and greater functionality of mobile phones. Mobile phones operate using the VHF (Very-high frequency) and UHF (Ultra-high frequency) bands ranging from 100MHz to 3GHz. SAW filters are used for the filtering application of signals in accordance with each system within these frequency ranges.

It is estimated that the latest smartphones are assembled with about 10 SAW filters. Murata holds an approximate 40% share of this SAW filter market (in-house estimation), which is the highest in the world.

Corporate overview of Kanazawa Murata Manufacturing Co., Ltd.

Company name: Kanazawa Murata Manufacturing Co., Ltd.
Established: August 1984 (operation started July 1985)
Capital: 480 million yen
(wholly owned subsidiary of Murata Manufacturing Co., Ltd. )
Representative: Norio Nakajima, President and Representative Director
Address: Chi-18, Sodani-machi, Hakusan-shi, Ishikawa, 920-2101 Japan
Number of employees: 2,005 (As of December 2012)
(Including employees of Sendai Plant)
Business lines: Manufacture of piezoelectric products and high-frequency devices

Corporate overview of Kanazawa Murata Manufacturing Co., Ltd. Sendai Plant

Company name: Kanazawa Murata Manufacturing Co., Ltd., Sendai Plant
Established: July 25, 2008
Representative: Norio Nakajima, President and Representative Director of Kanazawa Murata Manufacturing Co., Ltd.
Address: 2-6 Akedori 3-chome, Izumi-ku, Sendai-shi, Miyagi, 981-3206 Japan
Number of employees: 139 (As of December 2012)
Business lines: Manufacture of piezoelectric products

Murata in Brief

Murata Manufacturing Co., Ltd. is a worldwide leader in the design, manufacture and sale of ceramic-based passive electronic components & solutions, communication modules and power supply modules. Murata is committed to the development of advanced electronic materials and leading edge, multi-functional, high-density modules. The company has employees and manufacturing facilities throughout the world. For more information, visit Murata's website at www.murata.com