FRONT Line

Murata has maintained a good relationship with Tokyo Denpa (TEW), a successful manufacturer of crystal devices. The two companies entered into a capital and business alliance agreement in 2009, followed by a comprehensive cooperation agreement in 2011. Murata and TEW have worked together in sales as well as in the commercialization of the HCR, a quartz crystal featuring high accuracy and low cost. In August 2013, Murata further decided to acquire 100% ownership of TEW for greater synergy, optimal use of both partners' business resources, and faster decision-making. Since then, TEW has been committing itself to crystal device operations with a focus on timing devices by leveraging all the resources Murata has in development, production, sales, marketing and business management.

The HCR product made a difference in the field of crystal devices by offering a much smaller and less expensive quartz crystal. When the HCR was first launched, the market for quartz crystals was dominated by 3225 (3.2 x 2.5 mm)-size products and was very slow in downsizing. That was where Murata launched a product that featured a unique Cap Chip structure and the functionality of the traditional 3225 size product in 2016 (2.0 x 1.6 mm) size and at lower cost. But we failed to promote downsizing as we expected, because we were only an inexperienced new comer in the market for crystal devices. In 2014, however, the market saw a clear trend toward downsizing, resulting in significant growth in demand for more compact resonators in the markets for smartphones and automotive electronics. An increasing use of more compact modules and assembled products is generating higher demand for 2016 size quartz crystals.

We achieved a further milestone in March 2013 by launching quartz crystals in 1612 (1.6 x 1.2 mm) size designed for Bluetooth®, WiFi®, and other wireless communication technologies used in wearables and mobile devices. In connection with modules, we anticipate a shift toward more compact quartz crystals in 1210 (1.2 x 1.0 mm) size. Accordingly we are accelerating the commercialization of products in this size.

TEW’s integration in the Murata group has created great synergy for Murata. We position crystal-based products including the HCR as a new growth technology. TEW also produces quartz crystal ore, which has been combined with a design process using Murata’s hallmark packaging technology as well as with an industrial engineering (IE) approach in order to create innovative timing devices. In addition, TEW distributes ore and blanks (component materials), adding a completely new field to Murata’s business portfolio. In partnership with our customers, we hope we can open up applications of crystal devices featuring even higher accuracy.

The basic policy for Murata timing device operations includes the development of unique packaging technology, plus production management based on production equipment and process technology. This translates into strategies of differentiation from the traditional crystal device industry and of commercializing products just half a step ahead of the competition. The crystal device industry has a long history and established business customs. As our experience with the HCR shows, that is where products that are too much ahead of the times can be unacceptable. However, the trend is moving toward higher accuracy, higher quality, and more compact size. So we believe it is where we will be able to exercise Murata's full technical potential.

We will work on highly accurate crystal technology covering all phases from ore and blanks to resonator production. The aim is to generate innovations for timing device technology.

Going forward Murata aims to become a timing device house. As such, we hope to upgrade our lineup on the basis of our previous achievements and aggressively introduce and/or research new technologies to meet all customer needs for resonators. This year and next, we will focus on areas such as professional wireless equipment, surveying instruments, and high precision communication equipment.

More specifically, we plan to increase the accuracy of TCXOs integrating quartz crystals and temperature-compensating circuits, and develop an OCXO, a crystal oscillator with temperature control. We want to win over major clients in the West and China as new customers. We will work with Sales and Marketing to enhance our customer support. Depending on the applications, timing devices come in various types and with widely varying accuracy requirements. This makes it all the more important to provide customers with attractive product and support ideas that match their needs. To this end, we emphasize customer communication, which requires high sales and marketing ability. At the same time, we will need to employ engineers who can design ASICs (Application Specific Integrated Circuits) and proceed while considering the feasibility of joint development and partnerships with outsiders.

In the timing device market, we will strive to establish Murata as a coveted mid- to long-term partner, that is, a player having the power to develop products and make proposals and improvements in a way that helps customers in terms of component quality, production, and supply.