China's top MLCC makers see shares rise on strong first-half earnings driven by AI demand
Quick Look
China's leading multilayer ceramic capacitor (MLCC) manufacturers reported surging first-half 2026 profits and sales linked to AI-driven demand, with CCTC's revenue up 55% to 6.4 billion yuan and net profit up 56% to 1.9 billion yuan, while Guangdong Fenghua saw net profit rise 74% to 290.3 million yuan on 26% sales growth to 3.5 billion yuan, prompting share gains and plans to expand high-end MLCC production for servers and automotive sectors.
AI-generated summary
Why It Matters
Multilayer ceramic capacitors (MLCCs) are essential electronic components used in a wide range of devices, often referred to as the 'rice of the electronics industry' due to their ubiquity. Demand has been rising due to growth in AI infrastructure, servers, and electric vehicles.
China’s top makers of multilayer ceramic capacitors (MLCCs) – ubiquitous components known as the “rice of the electronics industry” – saw their shares rise on Friday after reporting ballooning first-half sales and profits amid soaring demand linked to AI.
The rally followed strong first-half earnings reported on Thursday. CCTC’s revenue surged 55 per cent to 6.4 billion yuan (US$952.3 million), while its net profit jumped 56 per cent to 1.9 billion yuan.
On the same day, domestic rival Guangdong Fenghua said its net profit for the first half of 2026 rose 74 per cent year on year to 290.3 million yuan. Sales increased 26 per cent to 3.5 billion yuan.
For the second half of 2026, CCTC said it would step up its push into high-end MLCCs for the server and automotive sectors, seeking breakthroughs in – and mass production of – ultra-high-capacitance, large-format products.
What to Watch
AI outlook — possibilities, not facts
CCTC will achieve mass production of ultra-high-capacitance, large-format MLCCs for server and automotive sectors in the second half of 2026
Likely · Within months
Open Questions
- What specific ultra-high-capacitance, large-format MLCC products are CCTC targeting for mass production?
- How will increased competition in the high-end MLCC market affect pricing and margins?
- What portion of CCTC's and Guangdong Fenghua's sales is directly attributable to AI-related demand?
