Message from the President | Murata value report (Integrated report) | IR Library

Message from the CEO

Our challenge: Envisioning a world with digital twins President Norio Nakajima

The published contents and positions are current as of September 26, 2025.

As we approach 2030, society is entering an era of profound transformation driven by innovations such as digital twins and artificial intelligence.
At Murata, we remain committed to leveraging these expanding opportunities as we strive to realize Vision 2030.

Looking towards 2030, guided by digital twins

As we approach 2030, society and industry are undergoing profound transformation, driven by remarkable advancements in AI and digital technologies. Digital twins—integrating physical space (real space) and cyberspace (virtual space) in real time—are beginning to shape both our daily lives and business environments. At Murata, we embrace this change, striving to innovate and create a continuous cycle of social and economic value that enriches society. Looking ahead, every member of the Murata Group will work together to realize Vision 2030 (long-term direction), while aiming to be the Global No. 1 Component & Module Supplier.

Announced in November 2021, Vision 2030 establishes a clear framework for Murata’s role and growth strategy amid the profound social and industrial shifts anticipated by 2030. The electronic components industry is evolving at unprecedented speed, with increasing complexity driven by technological convergence. In particular, the rapid advancement and adoption of AI have accelerated the emergence of digital twins—disruptive innovations that are redefining the foundations of society and industry.

In a digital twin system, data from the physical world is transmitted in real time to cyberspace through advanced wireless communication technologies. Within cyberspace, AI processes this vast data set, running simulations to identify optimal solutions and guide decision-making. These insights are then fed back into the physical world, streamlining daily life and enhancing business operations.

Digital twins are becoming increasingly prevalent across Murata’s manufacturing sites. Through initiatives such as smart factories, we leverage predictive maintenance to prevent defects—instantly analyzing root causes as soon as issues arise on the production line and immediately relaying insights to on-site teams. This integration of on-site expertise with AI and digital technologies is driving greater sophistication and efficiency throughout the manufacturing industry.

In healthcare and wellness, we see a future where individuals can transmit real-time health data to cyberspace, enabling AI to deliver instant feedback with diagnoses and treatment recommendations based on comprehensive analysis of vital information. This innovation will contribute to advancing preventive medicine, extending healthy life expectancy, and ultimately elevating the overall well-being of society.

Looking ahead, digital twins will play an increasingly vital role in capturing and digitizing diverse data from the physical space. In this evolution, Murata’s strengths—such as lightweight, compact, high-capacity technology; broadband and low-loss solutions; high-efficiency, high-power-density systems; and advanced packaging technology—position us at the forefront. These capabilities will continue to grow in importance as they form the foundation of a rapidly advancing digital society.

At Murata, we have witnessed major waves of innovation in the electronics industry roughly every 15 years—and at each milestone, we have made our presence felt. In 1985, we responded to the trend toward smaller home appliances by pioneering markets with compact, lightweight products. In 2000, we adapted to the rise of laptops and mobile phones through global deployment of high-frequency modules and filters. By 2015, we introduced products that supported the rapid expansion of the smartphone market. This history reflects Murata’s ability to anticipate technological and market shifts, driving industry-wide transformation. Today, AI is accelerating change at an unprecedented pace, surpassing traditional digital twin concepts. We are approaching a future where physical and cyber spaces synchronize in real time—enabling data collection, analysis, simulation, and optimization without human intervention: a world of “DigitalSync.” In this era, people’s lives and industrial activities will be automatically optimized.

We are leading the way in preparing for this new era. By managing our business with a long-term perspective—balancing technological innovation with sustainable value creation—we aim to deliver enduring contributions to society while cementing our position as the world’s the Global No. 1 Component & Module Supplier.

“DigitalSync” is an original term coined by Murata and not associated with any existing trade name or trademark.

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Challenges and achievements in a time of change

Since assuming the role of President in 2020, I have focused on driving a Company-wide effort to achieve Medium-Term Direction 2024—our first step toward realizing Vision 2030. Over the past three years, Murata has faced headwinds, including a slowdown in the smartphone segment, longer replacement cycles, and intensifying competition in high-volume markets. The anticipated boost from advanced high-frequency technologies has been slower than expected, while restructuring efforts in the battery business, despite narrowing target markets, resulted in impairment losses on manufacturing assets for cylindrical lithium-ion batteries and MEMS inertial sensors. Looking back, the challenge was not simply underestimating delays in technology adoption but failing to fully anticipate the rapid rise of AI and its applications. In particular, delays in allocating talent and investing in AI and IT infrastructure were fundamental issues. In innovation, success depends on acting swiftly on predictions and hypotheses. We will turn this self-reflection into concrete action—strengthening foresight, accelerating decision-making, and fostering a culture that embraces bold challenges without fear of failure. This will be the foundation for sustainable, medium- to long-term growth.

At the same time, we have seen encouraging progress in key areas. Our technological strengths have been highly valued in the automotive sector—particularly in powertrains, autonomous driving (AD), and advanced driver-assistance systems (ADAS)—driving steady growth. As vehicle electrification accelerates, our proven supply capacity, reliability, and quality have earned strong customer trust. In addition, demand in the IT infrastructure sector, including AI servers, has surged and is expected to become a major growth driver in the years ahead. To capture these opportunities, we will strengthen our capabilities and build new revenue pillars for next-generation growth, complementing our existing business foundation.

We have also made notable progress toward our social value goals. In line with our RE100 commitment, we advanced initiatives across our factories and achieved net-zero targets ahead of schedule. Addressing climate change and reducing environmental impact have become essential for sustainable corporate growth, and leadership in these areas strengthens our global competitiveness. However, a key challenge remains: translating social value improvements into economic value. Moving forward, it is critical that our efforts to help solve social issues enhance competitiveness and create systems that directly generate new business opportunities— an important priority for the future.

Additionally, we have continued to strengthen and diversify our supply chain. Despite rising geopolitical risks and global uncertainties, we are building resilient systems to ensure a stable delivery system to customers worldwide. Looking ahead, we will remain focused on capturing new growth opportunities and pursuing sustainable development in partnership with society.

Future outlook and growth strategy for Medium-Term Direction 2027

As we work toward the goals of Medium-Term Direction 2027, Murata aims to become a leading force in driving growth within the IT infrastructure market, with a focus on AI servers. While edge device evolution is expected to accelerate in scale, software-centric devices remain dominant, and widespread adoption of fully AI-enabled edge devices will take time. In contrast, the AI server market has entered a rapid expansion phase, fueled by large-scale investments from hyperscalers. This market demands speed and flexibility beyond conventional standards due to its scale, component diversity, and complex supply chains. Murata will lead by delivering advanced, optimized solutions through a broad product lineup and technological expertise—achieving compact size, high capacity, and superior efficiency.
Power supply has become a critical bottleneck for AI servers, making power consumption reduction a top priority. We will strengthen development of power supply units and related components, collaborating closely with customers from the design stage to deliver solutions that optimize energy use. This will reinforce our competitive edge in key areas such as capacitors, inductors, and power systems. Looking ahead, edge devices are expected to gain traction after 2026, with 2027 marking a wave of disruptive innovation, including 5G Advanced and AI-equipped mobility at Level 3 and beyond. In this context, Murata is not only advancing AI server solutions but also envisioning a future where AI functions are embedded directly into devices. We will continue refining cutting-edge technologies and enhancing adaptability to evolving market conditions. To capture these opportunities, we must deliver tailored product proposals for each customer and application while further strengthening supply chain responsiveness.
Our three-layer portfolio underpins our growth strategy. In the first layer—the standard product business—we leverage our strong market share and proven capabilities. In the second layer, focused on application-specific components, we are advancing a renewed customer strategy. Here, clarifying the ‘who, what, and how’— which customers, which products, and what value we deliver—is essential to restoring profitability. The third layer encompasses new businesses and solution areas, where we challenge ourselves to create innovative business models. As we pursue the goals of Medium-Term Direction 2027, we will adopt a “market-out” approach, proactively recommending applications and solutions that unlock new possibilities for our components. We anticipate an evolution in how customers define “components,” and our aim is to deliver value across all three layers—not just through component supply, but by offering integrated capabilities and responsiveness aligned with growing demand for modules and solutions. Achieving Medium-Term Direction 2027 is a responsibility we embrace for the future, and we will continue to move forward with determination and drive.

Building sustainable value creation

Corporate value is the sum of current earning power and future potential. To maximize this, we must focus on both profitability today and growth through technological innovation and market creation. I acknowledge that our short- and medium-term performance outlooks currently fall short of capital market expectations. Moving forward, we have a responsibility to restore and strengthen earnings while clearly articulating our future growth investments and potential in ways the market can easily understand. Equally important is fostering an organization-wide ‘thirst for results.’ In recent years, perseverance has weakened. To address this, we will build a culture of transparency, speed, and candid dialogue, replacing comfortable consensus with spirited discussions.
In 2025, we are accelerating organizational renewal, starting with appointing new vice presidents and empowering next-generation leaders to bring agility and vitality across departments. This transformation is essential for Murata to evolve into a more flexible enterprise capable of achieving Vision 2030. Through management that anticipates social change and innovation that creates a continuous cycle of social and economic value, we aim to contribute to a prosperous society. In an era of rapid AI evolution and digital twin integration, we will continuously reinvent ourselves to remain the best choice for customers and society.

Murata will continue to meet society’s evolving needs by embracing technological change and fearlessly pursuing new challenges to create value. Our goal is to drive sustainable growth in partnership with all stakeholders. We appreciate your continued support and confidence as we advance on this journey of innovation and transformation.

We will continuously reinvent ourselves to remain the best choice for customers and society.

Interview with President Nakajima: Murata’s Organizational Development

Q. Have your perceptions changed since taking office as CEO?

Before becoming CEO, my primary focus was on business results—expansion and profit growth were top priorities. However, stepping into the top management role has broadened my perspective. I now recognize the need to look beyond performance improvement to include environmental stewardship, intrinsic corporate value enhancement, and Murata’s position within the electronics industry as a whole. When I first proposed addressing environmental issues, gaining organizational understanding was challenging. Yet, through consistent action and a series of small successes, we gradually set the belief that building a sustainable society directly contributes to long-term corporate value. Today, I see one of management’s most important responsibilities as ensuring that our business activities create a positive impact on both society and the environment.

I also recognize that we lack sufficient voices within the organization who can view the entire industry from a broad perspective and offer diverse viewpoints. As our talent advances through the ranks, it is essential that they develop wider perspectives and the ability to make more holistic decisions. Drawing on my own experience, I have gained a deeper appreciation of my responsibility to lead with an inclusive, long-term outlook and to prioritize the development of the next generation of leaders.

Q. What do you mean by saying that the definition of components will change?

In the past, radio and television manufacturers typically purchased individual components— such as small capacitors and inductors—and assembled products from the ground up. Today, with smartphones and other multifunctional, highly integrated devices dominating the market, designing every function from scratch has become inefficient. Modern manufacturers now require modules that combine multiple functions and components into complete, streamlined solutions.

I believe that as we continue to explore new fields, the definition of “component” will continue to evolve. In the infrastructure sector, for example, components may encompass not only hardware but also integrated combinations of software and services—where even “proposal-based businesses” become the “components” customers seek. Put simply, a component represents the smallest unit from the user’s perspective. In this context, solution and service-driven businesses will grow in importance alongside our hardware-focused operations. By leveraging our three-layer portfolio, we aim to meet customers’ expanding definition of components, advancing beyond standard products and application-specific components into new business and solution domains.

Q. Why are spirited discussions critical now?

As a leader, one of my key priorities is cultivating a culture rooted in radical transparency and open, spirited discussions across all roles and levels. In the past, authority often stemmed from access to information—but today, in an environment where data flows freely and teams are increasingly dynamic, it’s vital to create spaces where every voice can be heard equally. To support this, I actively use communication platforms like our internal blog to share my thoughts, experiences, and challenges openly. This helps foster a culture of information sharing and mutual understanding. Of course, there’s always more I can do. Looking ahead, I plan to create more opportunities for face-to-face conversations that spark meaningful exchanges between departments and roles. As this culture continues to grow, I believe each employee will feel more empowered to engage with Murata’s business, take initiative, and contribute to continuous improvement with a sense of ownership and purpose.

Recent internal surveys and site visits have made one thing clear: high-performing workplaces thrive on diversity and engagement. Teams that include on-site operators and other varied roles—and where individuals feel empowered to share their perspectives—are more effective at solving problems and driving results. I believe that the more critical the issue, the more important it is to communicate openly and consistently about challenges and direction, rather than waiting for the perfect solution. This kind of communication is not just informative—it’s transformative. It lays the groundwork for organizational growth and change. By fostering ongoing dialogue, we create a foundation that welcomes a wide range of ideas and viewpoints, helping us unlock the full potential of our organization. We will continue to build a culture centered on transparency and open discussion, strengthening our corporate environment to foster continuous innovation.

Murata value report (Integrated report)