Letter of Intent signed regarding partial transfer of power supply business to NICHICON CORPORATION

NewsArticleTitle

4/5/2017

Murata Manufacturing Co., Ltd.
President/Statutory Representative Director:
Tsuneo Murata

Overview

Murata Manufacturing Co., Ltd. (“Murata”) and NICHICON CORPORATION (“Nichicon”) today announced that they have signed a letter of intent that confirms Murata’s intent to transfer part of its power supply business to Nichicon. The two parties plan to execute a transfer agreement by the end of May 2017.
The scope of the transfer will include AC-DC switching power supplies aimed at markets such as office equipment, industrial electronics, home appliances, and arcades (excluding products for the projector and lighting markets and products designed by Murata Power Solutions Inc.) as well as high-voltage power supplies.

Objective of transfer

Designating the automotive, energy, and healthcare markets as its target markets, Murata is creating new business models and customer value in our aims of market diversification and growth, while expanding its business in market domains where it can show what sets Murata apart from our competitors.
Murata intends to revise its portfolio in the power module business and reallocate resources to its target markets in order to enhance its competitive edge and expand its business.
In the power module business, Murata will mainly focus on products like DC-DC converters and AC-DC switching power supplies for the energy, data communications, and server markets.

Corporate overview of NICHICON CORPORATION

Company name:   NICHICON CORPORATION 
Location:   Karasumadori Oike-agaru, Nakagyo-ku, Kyoto 604-0845 
Business description:   R&D, production, and sales of various types of capacitors and circuit products 
Common stock: 
14,286 million yen (as of March 31, 2016)
Established:   August 1, 1950 
Number of employees:   4,818 (as of March 31, 2016) 

Corporate overview of Murata Manufacturing Co., Ltd.

Company name:   Murata Manufacturing Co., Ltd. 
Location:   10-1, Higashikotari 1-chome, Nagaokakyo-shi, Kyoto 617-8555 
Business description: 
Design, manufacture and sale of ceramic-based passive
electronic components and solutions, communication modules,
power supply modules, and other. 
Common Stock:   69,377 million yen (as of March 31, 2016) 
Date of incorporation:   December 23, 1950 (established in October 1944) 
Number of employees:   54,674 (as of March 31, 2016) 

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