Murata Manufacturing (TYO:6981) is strengthening incentives for employee inventions and patents as it seeks to maintain its lead in multilayer ceramic capacitors amid growing competition from Chinese and South Korean rivals, Nikkei reported Wednesday.
The company, which controls about 40% of the global MLCC market, offers rewards of as much as 1 million yen for inventions that lead to patents supporting competitiveness or licensing income, the report said.
In fiscal 2023, Murata also introduced incentives for promising technologies before patent applications are filed, according to the report.
MLCCs, which regulate electricity in electronic circuits, are used in products ranging from smartphones and electric vehicles to AI servers. Murata said demand is rising sharply as AI data centers require large volumes of high-performance capacitors, the report said.
Competition in the sector has intensified, with Samsung Electro-Mechanics expanding in high-end products while Chinese manufacturers increase patent filings and production of lower-cost components, according to the report.
Murata has also expanded intellectual property operations in North America and increased legal action in China to protect its technology. The company is involved in more than 10 patent lawsuits in China, compared with none a decade ago, the report said.
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