The wave of price hikes triggered by AI is spreading throughout the component industry chain.

The wave of price hikes triggered by AI is spreading throughout the component industry chain. Following the sharp rise in memory chip prices, multilayer ceramic chip capacitors (MLCCs) have become the next key component to see price increases. Reportedly, spot prices for Korean MLCCs have already risen by nearly 20%, and industry insiders expect prices to continue climbing in the short term.

　　The capital market has responded positively. Since 2026, leading MLCC manufacturer Samsung Electro-Mechanics of South Korea has seen a significant rise in stock price, and related A-share stocks such as Fenghua High-Tech and Sanhuan Group have also risen in tandem. Industry insiders generally expect that the MLCC sector will show a differentiated pattern in 2026: driven by the AI boom, demand for high-end products is expected to surge; meanwhile, mid- and low-end products will face pressure from weak demand and rising costs. Domestic companies that have already established a strong position in the mid- and low-end markets are now accelerating their efforts to break into the high-end segment.

　　High-end MLCCs are in short supply.

　　Since 2026, stocks related to the MLCC industry have continued to rise. According to Wind data, as of February 9, Samsung Electro-Mechanics of South Korea has risen by over 11% since 2026; on the A-share market, Fenghua High-Tech has surged by over 29% since 2026, Sanhuan Group has risen by over 18%, and Sunlord Electronics has climbed by over 7%.

　　On the news front, spot prices for MLCCs in South Korea have recently risen by nearly 20%, and industry insiders expect prices to continue rising in the short term.

　　Behind the price increase lies an explosive surge in demand for AI servers. As the “rice of the electronics industry,” MLCCs are essential components used in electronic device circuits to stabilize power supply and filter out interference signals. With the rapid development of the artificial intelligence industry, AI servers—due to their enormous power consumption—require more than three times as many MLCCs as ordinary servers. This sharp rise in demand has intensified supply constraints.

　　AI servers require high-end MLCCs that are both high-temperature resistant and feature large capacitance; therefore, manufacturers with strong mass-production capabilities are poised to benefit first. Driven by inventory demands from NVIDIA servers as well as cloud service giants such as Amazon and Google, orders for high-end MLCCs remain robust. Major Japanese and Korean manufacturers have already reached full capacity in their high-end MLCC production lines, with Murata Manufacturing, Samsung Electro-Mechanics, and TDK all maintaining capacity utilization rates above 80%. Among them, Murata Manufacturing, thanks to its mastery of key materials for advanced packaging, is expected to see a 20% to 25% increase in high-end MLCC orders in the first quarter, keeping its production lines fully loaded.

　　Performance data confirms the robustness of the market. According to the data, Samsung Electro-Mechanics achieved a record-high revenue in the fourth quarter of 2025, with its component division—specializing in high-voltage and high-capacity MLCCs—generating revenue of KRW 1.3203 trillion, representing a 22% year-on-year increase.

　　Domestic manufacturers are accelerating their breakthrough.

　　Looking at the current global competitive landscape, leading international companies hold top positions in market share. According to statistics from the Information Center of the China Electronic Components Industry Association, in 2023, the top five global MLCC suppliers—including Murata Manufacturing, Samsung Electro-Mechanics, and TDK—accounted for more than 80% of the market share.

　　Industry insiders believe that China has already established a relative advantage in the global mid- to low-end MLCC market. However, in the high-capacitance and high-reliability segments—areas where MLCC products are considered高端—China’s industrialization process is relatively lagging.

　　However, domestic manufacturers are also stepping up their efforts to break into the high-end market. The domestic MLCC market is divided into two major segments: civilian and military. Although the high-end civilian segment is still dominated by international industry leaders, Chinese companies are steadily gaining momentum. Sanhuan Group’s MLCC products focus on applications such as 5G communications, AI servers, and automotive electronics, covering standard sizes from 0201 to 2220, as well as medium- and high-voltage products and automotive-grade components, and continue to achieve breakthroughs in the field of high-capacitance products. Fenghua High-Tech, starting from mid-to-low-end general-purpose MLCCs, is expanding into high-voltage automotive-grade products and has successfully entered the supply chains of automakers such as BYD.

　　The industry is showing a clear trend of divergence.

　　The industry believes that the MLCC sector is currently in an upward cycle. The MLCC industry exhibits growth potential while also showing distinct cyclical characteristics throughout its development. Historically, each cycle has lasted approximately 4 to 5 years. Following the inventory destocking process since 2022, current industry inventory levels have reached a reasonable range. Supported by demand from sectors such as automotive electronics and AI servers, the likelihood of a significant further downturn in the industry is now relatively low, meaning the sector remains in an upward phase of the cycle.

However, the industry is likely to show a clear trend of differentiation. Driven by the implementation of AI applications, demand for high-end MLCCs has surged. Meanwhile, the off-season effect coupled with rising raw material costs has led to weak demand in traditional consumer electronics, placing significant operational pressure on mid- and low-end MLCC manufacturers.

　　In 2026, AI servers will continue to expand in capacity, while terminal applications such as robots, autonomous driving systems, and smart glasses will simultaneously accelerate their adoption. Taking AI servers as an example, each AI server is typically equipped with roughly 15,000 to 25,000 MLCCs. Murata Manufacturing forecasts that the MLCC market for AI servers will grow at an annual rate of 30%, reaching 3.3 times its 2025 level by 2030.

　　Compared to the booming demand for AI, traditional consumer electronics markets such as smartphones and laptops appear particularly sluggish. Original Design Manufacturers (ODMs) like Pegatron have scaled back their material procurement, with MLCC orders in January declining by an average of 5% to 6% month-on-month. As a result, mid- to low-end MLCC manufacturers have kept their capacity utilization rates at between 60% and 70%, and inventory adjustment days remain stable at 60 to 75 days. Moreover, international prices of metal raw materials have repeatedly hit new highs, driving up the production costs of passive components.

　　Unlike previous cycles that were primarily driven by demand for consumer electronics, this round of upward cycle in the passive components industry is expected to be longer and more sustainable, thanks to the rapid growth in demand from emerging sectors such as AI servers, new-energy vehicles, and industrial control, as well as the continued penetration of domestic manufacturers into high-end product segments.