AI Demand Widens MLCC Supply-Demand Gap, Samsung Electro-Mechanics to Raise Prices by 30% Starting August
Taylor Wilson
Samsung Electro-Mechanics is raising MLCC prices by roughly 30% from August, with Taiyo Yuden following in September; TrendForce data show the three leading makers hit a five-year monthly shipment high in June, making Q4 the pivotal test for a full-blown high-end shortage.
What are MLCCs, and why are they suddenly scarce?
MLCCs — multilayer ceramic capacitors, fingernail-sized components found on virtually every circuit board — are at their tightest supply-demand balance in five years.
Two forces are driving the squeeze: AI servers and automotive electronics, both of which consume large volumes of high-capacity, high-reliability MLCCs.
This means → MLCCs are unglamorous but essential — the "staple grain" of AI computing and smart vehicles. A shortage ripples straight into downstream device makers.
How big is the price hike, and who moved first?
Samsung Electro-Mechanics raised MLCC prices by roughly 30% starting in August, firing the first shot in this cycle.
Taiyo Yuden plans to follow in September and has warned customers that even at the new price, deliveries may still be constrained.
In plain terms = paying more does not guarantee supply — buyers are paying more *and* waiting longer.
What does the data say about supply versus demand?
TrendForce data show Murata, Samsung Electro-Mechanics, and Taiyo Yuden hit a five-year monthly shipment high in June.
All three posted sharp profit gains in the latest quarter, driven by AI-server and automotive demand.
The book-to-bill ratio — new orders divided by actual shipments — has climbed to a historic high. This means → orders are growing faster than output, and inventory is being drawn down continuously.
Will Q4 bring a full-blown shortage?
TrendForce expects next-generation AI chip platforms from Nvidia, Google, and AMD to enter volume production in H2 2026, tightening MLCC supply further.
Q4 is seen as the decisive inflection point: whether high-end MLCCs tip into outright shortage depends on actual chip-platform ramp schedules.
This reflects a single core variable — which moves faster, AI-chip volume ramp or upstream material expansion, will determine the market's direction.
What is China's supply chain doing?
Shandong Sinocera Functional Material (a major supplier of MLCC dielectric powder) is expanding capacity for AI-server and automotive applications; some new lines are already operational.
Jiangsu Boqian New Materials recently committed RMB 201.5 million to expand metal-powder capacity, including nickel powder used in MLCC electrodes.
Zhejiang Jiemei Electronic Technology is ramping production of release film — a critical MLCC manufacturing consumable — supplying Murata, Samsung Electro-Mechanics, and Taiyo Yuden.
Are Chinese MLCC makers cashing in?
Fenghua Advanced Technology guides H1 2026 net profit growth of 61.8% to 79.8% year-on-year.
China Zhenhua (Group) Science & Technology guides net profit growth of 45% to 65% year-on-year.
Both attribute the gains to improving demand, higher shipment volumes, and recovering product prices. In plain terms = volume and price are rising together — these are the most direct beneficiaries of the current upcycle.
Content is for reference only, not financial advice.