Taiyo Yuden’s Net Profit Jumps More Than Fivefold on AI Server Demand

Multilayer ceramic capacitors, or MLCCs, are critical components in AI-server power systems, computing boards and automotive electronics. Demand is shifting toward higher-capacitance, high-reliability parts as data-center investment accelerates, tightening supply at the premium end of the market. Price increases by Samsung Electro-Mechanics and Taiyo Yuden have therefore become an important read-through for Yageo Group, a leading passive-component supplier, as investors assess whether firmer pricing can sustain its earnings momentum.

At a July 29, 2026, online investor conference hosted by Morgan Stanley, Yageo detailed its second-quarter performance and outlook. Revenue reached a record NT$44.456 billion, up 16.5% from the previous quarter and 35.7% from a year earlier; June sales alone were NT$15.359 billion, up 38.9% year on year. The company said inventory destocking had bottomed and its book-to-bill ratio had climbed to 2.2, while some end customers were offering premiums to secure capacity.

Multilayer ceramic capacitors, or MLCCs, are essential components used to regulate electrical current in servers, vehicles and robots. Murata Manufacturing, the world’s leading MLCC supplier, expects investment in generative AI infrastructure and the emergence of “physical AI” applications to sustain demand for advanced capacitors. The outlook makes AI servers and robotics an increasingly important growth engine for the Japanese electronic-components industry.

Murata expects demand tied to AI servers and physical AI to keep expanding beyond 2028. The company plans to invest about 80 billion yen through fiscal 2027 to raise MLCC production capacity by more than 20%. It is also “boldly considering” larger new plants in Japan and overseas to address longer-term demand, while signaling that it does not intend to increase MLCC prices in the near term despite the strong market.