A manufacturing unit will be established in Tamil Nadu by Japanese electronics company Murata

Strengthening Tamil Nadu’s growing electronics sector, Japanese electronics giant Murata Manufacturing Company has set up a factory at OneHub Chennai Industrial Park to produce multilayer ceramic capacitors. This marks a significant step for the Kyoto-based company, which is globally recognized for its cutting-edge multilayer ceramic capacitors (MLCCs), widely used in devices ranging from Apple and Samsung smartphones to Nvidia servers and Sony gaming consoles. Murata’s components have even played a role in NASA’s Mars helicopter project.

State Industries Minister TRB Rajaa announced the company’s entry into Tamil Nadu on Wednesday, highlighting it as another major addition to the state’s electronics ecosystem, following the recent arrival of Corning and Jabil. He emphasized that this move aligns with the broader goal of boosting electronics exports from the state, with ambitions to increase them tenfold to $100 billion.

Murata’s entry follows remarks from its president, Norio Nakajima, who previously indicated that the company was evaluating investment opportunities in India. Currently, nearly 60% of Murata’s MLCCs are manufactured in Japan, but with this new facility, the company is taking a strategic step toward expanding its presence in India.

According to Rajaa, discussions with Murata had been ongoing for about a year, culminating in the company’s decision to launch production in Tamil Nadu. The company aims to have full-scale operations by FY26, using this initial phase to gain operational experience before scaling up its manufacturing activities in the country.

Tamil Nadu’s electronics sector has witnessed remarkable growth, primarily driven by Apple and its associated ecosystem. The state emerged as India’s top electronics exporter in FY24, registering a 78% increase compared to the previous year. Contributing around $9.56 billion to India’s total electronics exports of $29.12 billion last year, Tamil Nadu has already surpassed $6 billion in exports from April to September this year.

Addressing skepticism about India’s role in electronics manufacturing, Rajaa stated that the country is moving beyond mere assembly, with a significant shift in the supply chain. He reaffirmed that India is on the path to becoming a global hub for advanced electronics manufacturing, with Tamil Nadu leading this transformation.

Categories: Business
Pratik Patil: