Chinese MLCC makers gain ground as Japanese and Korean rivals move upmarket
The surge in AI server usage is fueling the need for sophisticated multilayer ceramic capacitors (MLCCs), leading manufacturers from Japan and South Korea to target more premium markets. This shift creates openings for Chinese firms to penetrate lower-end sectors. MLCCs are essential in electronics and are particularly sought after for AI servers due to their compact size, high capacitance, and thermal stability. Goldman Sachs characterizes this trend as "the largest and longest cycle in history." Kazunori Ito from Morningstar highlights that price declines are limited, with top-tier suppliers planning price hikes starting in 2026. Citrini Research projects the server MLCC market will reach US$1.3 billion by 2025, with an anticipated 80% growth in AI server MLCCs.
Key facts
- Japanese and South Korean MLCC makers are moving upmarket due to AI server demand.
- Chinese manufacturers are gaining share in lower-end MLCC segments.
- MLCCs are tiny components that regulate electrical currents in devices.
- Goldman Sachs calls the current cycle 'the largest and longest in history'.
- Kazunori Ito of Morningstar expects muted price erosion and price increases from 2026.
- Citrini Research values the server MLCC market at US$1.3 billion in 2025.
- AI server MLCC demand is expected to grow by about 80%.
- High-end MLCCs require miniaturization, high capacitance, thermal resistance, and reliability.
Entities
Institutions
- Goldman Sachs
- Morningstar
- Citrini Research
- TrendForce
- China Securities
- Murata Manufacturing
- Samsung Electro-Mechanics (SEMCO)
Locations
- Japan
- South Korea
- China
- Taipei
- Taiwan