Rising AI demand has triggered a scramble for multilayer ceramic capacitors (MLCCs), with some buyers paying two to three times the usual price to secure supply from Yageo and Murata. Industry sources say the market has turned into a highest-bidder-wins contest. Major manufacturers are running near full capacity, and lead times have stretched to 12–16 months. Yageo confirms that AI-related customers increasingly want to lock in capacity ahead of time to reduce supply risk. The company expects standard-product utilization to climb from around 80% in Q2 to above 90% this quarter, while specialty products stay above 90% as overall loading moves toward full. Yageo is also expanding capacity, with new output ramping up quarter by quarter. Japanese peers are equally bullish: Murata has sharply raised its full-year profit forecast, and Taiyo Yuden says AI server demand is surpassing expectations. Industry watchers note that large customers typically get higher capacity allocation priority, leaving smaller buyers to pay premiums for limited supply. Yageo adds that more clients are signing long-term agreements to lock in passive component supply for the next six months to several years, a shift aimed at reducing supply-chain risk.
ChainCatcher reports that rising AI demand is reshaping the multilayer ceramic capacitor (MLCC) market. Some buyers are paying two to three times the normal price to secure supply from Yageo and Murata, and industry sources describe the scramble as a highest-bidder-wins market.
Lead times stretch to 12-16 months
Major MLCC makers are running with full order books and near-maximum capacity, pushing lead times out to 12 to 16 months. Yageo says AI-related customers, worried about supply risk, increasingly want to reserve capacity in advance. The company expects standard-product utilization to rise from roughly 80% in Q2 to above 90% this quarter, with specialty products holding above 90% as overall loading approaches full. Yageo is expanding capacity in tandem, with new output scheduled to come online gradually over the coming quarters.
Japanese suppliers turn bullish
Japanese manufacturers share the upbeat outlook. Murata has sharply raised its annual profit forecast, while Taiyo Yuden says AI server demand is running ahead of expectations.
Long-term agreements gain traction
Large customers typically command higher priority in capacity allocation, industry participants note, leaving small and mid-sized buyers to bid up prices for limited supply. Yageo says a growing number of clients are signing long-term agreements to lock in passive component supply for the next six months to several years, a move aimed at reducing supply-chain disruption.
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