The market for multi-layer ceramic capacitors (MLCC), often called the rice of the electronics industry, is experiencing extreme volatility driven by AI demand. Major international manufacturers including Murata, Taiyo Yuden, and Samsung Electro-Mechanics have raised prices for high-capacity MLCCs used in AI servers by 15% to 35%.
In the Shenzhen Huaqiangbei spot market, prices fluctuated significantly starting in late May. By June, some popular models saw price increases of 7 to 8 times, with spot prices reaching 2 to 10 times their original cost. However, prices began to retreat in July as distributors liquidated stockpiles amid weak demand for consumer electronics.
The structural imbalance is fueled by the rise of AI infrastructure. AI workstations require 2 to 3 times more MLCCs than standard mini PCs, while 1.6T optical modules now utilize 500 to 1,000 units each. Communication firms report that third-quarter orders have doubled year-over-year and increased by 50% to 60% quarter-over-quarter.
As global manufacturers shift capacity toward high-end AI components, downstream companies are increasingly turning to domestic suppliers. Some Chinese manufacturers have already secured orders for high-end specifications through the second quarter of 2027. Procurement cycles have shifted from 1–2 months to 3–6 months, with lead times extending from 6–8 weeks to 16 weeks.
