Murata Manufacturing Co. unveiled a three-year business strategy focused on capturing growth from artificial intelligence-driven electronics demand, setting ambitious profitability targets amid an industry-wide technology shift.
The Kyoto-based electronic components maker aims to achieve revenue of ¥2 trillion ($13.3 billion) and an operating profit margin of 18% or higher by fiscal 2027, according to its medium-term plan announced Monday. The company is targeting return on invested capital of at least 12% on a post-tax basis.
The manufacturer plans to invest ¥680 billion in capital expenditure through fiscal 2027, with ¥220 billion earmarked for strategic investments including mergers and acquisitions. A key focus will be expanding production capacity for ceramic capacitors used in AI servers, where component demand is projected to grow about 30% annually.
“During the expansion in the field of electronics driven by AI, we will seize additional growth opportunities to achieve disruptive growth,” the company said in its presentation materials. Murata expects AI servers to require up to 20,000 capacitors per unit, compared to 1,000-1,400 for smartphones.
The plan includes environmental targets, with Murata aiming to source 55% of its electricity from renewable energy by fiscal 2027 and achieve carbon neutrality for direct emissions by 2040. The company advanced its previous target for 100% renewable energy use to 2035 from 2050.
Murata also plans geographic expansion, particularly in emerging markets, while strengthening its global supply chain resilience through production site diversification. The strategy comes as electronics makers grapple with geopolitical risks and growing demand for localized manufacturing.
The component maker maintained its forecast for fiscal 2024 ending March, projecting revenue of ¥1.7 trillion and an operating margin of 17.6%. Current performance has been impacted by weaker consumer electronics demand, though the automotive and AI server segments remain robust.
