[Introduction to Big Bit]Over the past year, Murata has closed three Huasun companies, all of which are passive component manufacturers.
Recently, the reporter of “Magnetic components and Power Supply” learned from the official website of Murata Manufacturing that Saitama Murata, a wholly-owned subsidiary of Murata, will close one of its subsidiaries in China, Shenglong Technology, which produces passive components, in December 2020.
According to the data, Saitama Murata Manufacturing Co., Ltd. mainly develops and produces coil products, focusing on the telecommunications market. In recent years, Saitama Murata has been in a very difficult operating environment due to a number of factors, as the development cycle of major markets such as the smartphone market has shortened, demand has diversified, and competition with “overseas” manufacturers has intensified.
The same situation also happened in Thanglong Technology, a subsidiary of Saitama Murata Manufacturing Co., Ltd. In recent years, the company has also experienced a sharp decrease in demand for production products and intensified price competition.