China MLCC expansion and measures of Japan

Molf Lai, DIGITIMES Research, Taipei 0


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With China aggressively pushing to expand MLCC capacity, Japan has been working keenly to prevent damage from related projects.

China's multilayer ceramic capacitor (MLCC) industry has long relied on imports. Encouraged by the Chinese government's policies, many businesses are expanding production to achieve self-sufficiency. The move aims to ensure the supply chain's resilience and complete the value chain in the electric vehicle industry.

In response to this trend, the Japanese government held the "Eighth Economic Security Legal System Experts Meeting" on November 8, 2023. During the meeting, the participants proposed designing MLCC products as alternate options for specified essential materials.

The proposal is a strategic response to China's active expansion of MLCC production and its gradual shift towards the mid-to-high-end automotive market. Suppose MLCC is enlisted as an essential material. In that case, Japanese businesses can expect favorable treatment regarding technological R&D efforts and financial support, thus enhancing Japanese makers' willingness to expand production within Japan, ultimately retaining technical expertise locally.

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