AI Boom Drives High-End MLCC Demand, With Tight Supply Expected Through 2027

Multilayer ceramic capacitors, or MLCCs, are critical passive components used in power and signal control systems for AI chips and servers. Faster AI server upgrade cycles and rising production of custom ASICs developed by cloud service providers are driving demand for high-end specifications. Because these products face high capacity and certification barriers, tighter supplies could directly affect equipment production schedules and costs.

The book-to-bill ratios of major Japanese and South Korean MLCC manufacturers have recently climbed to their highest levels since the pandemic. With new AI chip platforms expected to enter mass production progressively from the second half of 2026, other products may compete for high-end capacity, increasing the risks of longer lead times and higher prices. Available reports do not identify individual manufacturers or disclose book-to-bill figures, price increases or related monetary amounts.

Multilayer ceramic capacitors, or MLCCs, are essential passive components used in servers, consumer electronics and automotive equipment. Rapid growth in AI servers and related applications is crowding out capacity for standard MLCCs, fueling expectations that tightening supply and demand will trigger a new round of price increases. Yageo, with its broad product portfolio, is therefore seen as a major beneficiary.

As of July 20, 2026, Goldman Sachs sharply raised its price target for Yageo to NT$1,490, citing the capacity squeeze caused by AI demand and the possibility that standard MLCCs could enter a cycle of significant price increases. The upgrade reflects market expectations for improvements in Yageo’s product pricing, capacity utilization and profitability.