Logistics Issues Forced Murata To Switch To Air Shipping
Hardware

Logistics Issues Forced Murata To Switch To Air Shipping

The shortage of auto components is partly caused by disruptions in logistics, so finding solutions to this problem entails additional costs for many manufacturers. The Japanese company Murata, due to a shortage of sea vessels, was forced to go to extreme measures, supplying lithium batteries by air. This is not only dangerous, but also very expensive, so the core business may turn out to be unprofitable in the current fiscal year.

Image source: Pixabay

Image source: Pixabay

In 2017, Japanese electronic components maker Murata bought Sony’s lithium battery business, and it has suffered only losses so far. Ending them by March 2022, as originally planned, is now hampered by increased costs. First, in the next three years Murata intends spend $ 5.6 billion to expand battery production. This will place the business in second place in terms of investment, behind the ceramic capacitors that Murata has made a name for. Second, disruptions to shipments by sea are forcing Murata to spend money on shipping lithium batteries by air, which is significantly more expensive. The good news is the skyrocketing demand for lithium batteries, which allows the company to count on the ability of future investments to pay off.

Not only transport is switching to lithium batteries. Vacuum cleaners, power tools and gardening equipment are switching to lithium batteries much more actively than expected. As long as silicon wafer production remains limited, it is not possible to overcome the shortage of semiconductor chips in the automotive industry, according to Murata representatives. Automakers are trying to reduce the number of chips used in a single car, but this kind of optimization takes time. There is little reason to count on an improvement in the situation in the industry next year. Moreover, in the long term, the specific number of chips in one car will inevitably grow.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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