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MLCC Suppliers Surge as AI Server Demand Triggers Industry Supercycle
Electronic Technology · Electronic Components · economic_daily · 2026-09-10
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Passive component makers Yageo and Walsin Technology saw share price gains amid reports of supply tightening and surging demand for AI server-grade MLCCs.
What Happened
Market Reaction: Passive component stocks rallied following reports that Japan's Murata Manufacturing may discontinue certain MLCC product lines. Yageo and Walsin Technology led the gains, reflecting strong investor confidence in the sector.
AI Server Demand: Analysts highlight that AI servers require significantly higher volumes of MLCCs compared to standard servers, with some units needing up to 40,000 capacitors. This surge in demand has prompted ODM manufacturers to aggressively secure inventory.
Company Performance: Yageo has seen its book-to-bill ratio climb to 2.2, with utilization rates rising to 90%. JPMorgan has maintained an 'Overweight' rating on Yageo, citing favorable industry trends and strong order visibility.
Pricing Outlook: With potential supply shortages looming in the third quarter, manufacturers are expected to raise prices by 20% to 30% in the fourth quarter. Taiwanese suppliers are projected to implement price hikes of 10% to 20%, bolstering their profit outlooks.