Tiny, postage-stamp-sized MLCC components, vital for AI servers and EVs, are in such high demand that prices have quadrupled in Shenzhen's Huaqiangbei market since Chinese New Year, though actual transactions are slow due to inflated prices.
AI's demand for data centers is creating the largest MLCC supply cycle in history. AI servers require significantly more MLCCs than standard setups, driving up demand.
Soaring AI server demand is pushing Japanese and South Korean MLCC makers into high-end products, creating opportunities for Chinese competitors in lower-end markets. The MLCC market is experiencing a historic cycle with rising prices and capacity expansion expected.
Demand for multilayer ceramic capacitors (MLCCs) is surging due to the AI boom, with AI servers requiring significantly more MLCCs than traditional ones. Manufacturers are prioritizing high-end supply, leading to price increases.
