Murata value report (Integrated report)

The world is once again at a major turning point. Since joining the company in 1985, I have witnessed more than four decades of transformation in the electronics industry. In the 1980s, advances in miniaturization reshaped products such as video cameras. In 2000, the expansion of the Internet and rapid progress in mobile phones created entirely new markets. By 2015, advances in wireless communications and the spread of IoT connected smartphones, PCs, and a broad range of equipment, ushering in an era of ubiquitous connectivity. Roughly every 15 years, a major technological shift has transformed society and industrial structures. I refer to these recurring shifts as the “waves of electronics.”

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Murata has grown by responding to successive waves of technological innovation and supplying the electronic components that enable them. Anticipating the next major wave, we have been preparing through Vision 2030. However, that transformation is arriving faster than expected, with AI at its center. I view AI not simply as another technological advance, but as a new industrial revolution. Previous waves were driven largely by specific applications, such as cameras, mobile phones, and automobiles. AI, by contrast, is expected to permeate virtually every industry and become an integral part of social infrastructure. Its impact will extend beyond rising demand to transform manufacturing, management, customer businesses, and society itself.
As AI evolves, society will require faster, more secure, and more energy-efficient processing of ever-growing volumes of information. Meeting these needs will depend not only on semiconductors, but also on the electronic components that enable communications, power delivery, sensing, and high-frequency performance. For electronic component manufacturers, this represents an unprecedented opportunity for growth and value creation.
By leveraging our strengths in materials and production technologies, together with our broad portfolio of electronic components, we will continue to provide the key devices that enable customers to realize new value.

Investment in AI data centers — the infrastructure supporting AI transformation — is accelerating worldwide, with demand growing faster than initially anticipated and expected to remain strong over the long term. However, supporting this growth requires far more than semiconductors and electronic components. It also depends on significant power and resource capacity, as well as the people and expertise needed to build and operate these facilities. Addressing these requirements will require collaboration across industries to advance both sustainable economic growth and solutions to resolve social challenges.
The growth of AI data centers is only the beginning. As AI infrastructure expands, adoption will accelerate across a wide range of applications, including edge devices, automobiles, drones, and industrial equipment. AI will also enable digital twins that more closely connect the physical and digital worlds, reshaping how people interact with devices and systems. Over time, this evolution is expected to create new markets and opportunities for value creation in emerging fields such as humanoid robotics and space.
As AI adoption expands, Murata’s role will become increasingly important. Demand for advanced capacitors is already rising sharply, driven in part by the rapid growth of AI data centers. In a market environment defined by significant change, the ability to make timely, forward-looking investment decisions is an important source of competitiveness.
We are therefore investing not only to address current demand, but also to prepare for future market growth. In FY2026, in addition to previously planned capacity expansion, we decided to make ¥80 billion in additional capital expenditure for our capacitor business. Although demand is growing faster than anticipated, we will continue to respond swiftly, strengthen our supply capabilities, and support both our customers and the continued growth of the market.

As AI becomes embedded in social infrastructure, its applications will expand well beyond data centers to edge devices, automobiles, humanoids, and industrial equipment. As these applications evolve, the performance requirements and roles of electronic components will also become increasingly sophisticated.
These shifts create new challenges for our customers while opening opportunities for Murata to deliver greater value. In AI data centers, demand is increasing for power modules that efficiently supply servers and backup batteries that help protect critical data. At the edge, real-time exchange of vast amounts of data will require advanced high-frequency devices and connectivity modules that support next-generation communications. Autonomous driving and humanoid applications will also depend increasingly on sensing and wireless technologies that enable systems to understand their surroundings and communicate reliably.
At the same time, emerging technologies such as optical communications and optoelectronic conversion are creating new opportunities to reduce power consumption in AI data centers. As these needs evolve, we will continue to provide the key devices that enable our customers’ innovation. Achieving this will require not only the evolution of our products, but also the transformation of Murata itself through the effective use of AI.
I believe that in the age of AI transformation, a company’s competitiveness will be determined not by “whether it has AI,” but by “what it trains AI on and how it uses that learning to strengthen competitiveness.” We have built a vertically integrated business model that encompasses everything from material development to production processes and equipment, manufacturing, and sales. The vast information and expertise in materials, production, quality, and sales that we have accumulated through this process are valuable management resources unique to Murata and difficult for other companies to replicate. Using AI to make the most of these resources and quickly identify changes in customers, markets, technology, and manufacturing will drive future growth. To achieve this, it is important to leverage AI not simply as a means of improving efficiency, but as a tool for unlocking the full potential of people. I have long viewed AI as “a tool for reclaiming time.” Beyond making operations more efficient, it supports human decision-making and allows people to devote more time to creative work. I believe that using this time to deepen our strengths in materials technology and core technologies is what will give us a competitive advantage.

At the same time, the source of our competitive advantage remains unchanged, even in the age of AI transformation. To continue delivering the key devices our customers will need, we must further differentiate ourselves in upstream areas such as materials and production technologies. By applying the time and insights gained through AI to strengthen these distinctive capabilities and other core technologies, we will continue to create new value for our customers and markets.

A robust management foundation is essential to turning growth opportunities into tangible value. As global supply chains become increasingly complex, responding effectively to geopolitical risk and energy and resource constraints has become a critical management priority.
Since becoming President, I have made supply chain diversification a key management issue. Especially in times of profound change, we must build a resilient supply network that is not overly dependent on any single region or site, helping ensure stable supply to our customers. At the same time, while AI creates significant new value, it also places greater demands on energy and resources. Murata is addressing this challenge on two fronts: by providing products that help customers reduce power consumption and by lowering the environmental impact of our own operations.
Alongside accelerating our RE100 and carbon neutrality initiatives, we are expanding our portfolio of environmentally beneficial products and advancing resource recycling. These efforts are both part of our responsibility to support a sustainable society and an important source of long-term competitiveness.
This AI-driven change is not a temporary surge in demand, but a historic shift that is transforming the very structure of society. That is why we must embrace change as an opportunity for growth rather than fear it and continue to evolve as a company. Through our unique technologies and manufacturing, we will create new value together with our customers. As the Global No. 1 Component & Module Supplier supporting society in the age of AI transformation, we will continue to contribute to the realization of a sustainable society.
Even as the world undergoes profound change, our business is built on the support by many , including employees, suppliers, customers, local communities, shareholders, and investors. I believe that remaining a company trusted by all these stakeholders forms the foundation for long-term growth.