How tiny capacitors became the latest AI-driven investor darling
Artificial intelligence boom is triggering a surge in demand for multilayer ceramic capacitors, report says
Demand for multilayer ceramic capacitors (MLCCs), tiny electronic components found in everything from smartphones to electric vehicles, is surging as the artificial intelligence boom triggers new production.
MLCCs, which act as electrical buffers in circuit boards, are increasingly deployed in massive volumes in high-performance servers, emerging as the latest AI-driven investor darling following memory chips and optical modules.
The AI hardware boom was squeezing production capacity as MLCC manufacturers prioritised high-end supply for data centres over consumer-grade capacitors, prompting suppliers to raise prices, TrendForce, a market research firm based in Taipei, said in a report released on Monday.
An AI server, densely packed with graphics processing units, consumes up to 10 times more power than a traditional server, and requires up to 28,000 MLCCs per unit, a 13-fold increase from a standard set-up, China Securities said in a research note issued last week.
The MLCC industry was poised for explosive growth, China Securities said – “potentially repeating the ‘growth miracle’ previously seen in the optical module sector”.
The global MLCC market is dominated by Japanese and South Korean manufacturers, led by Murata Manufacturing and Samsung Electro-Mechanics (SEMCO), which have a tight grip on the high-end capacitors used in AI servers.