AI demand drives MLCC shortage, prices surge up to 3x

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Altcoins to watch are drawing attention as AI demand fuels a multilayer ceramic capacitor (MLCC) shortage, with prices rising up to threefold. Major suppliers like Yageo and Murata are facing 12–16 month lead times and utilization rates above 90%. AI clients are securing long-term contracts, forcing smaller buyers to pay premiums. Japanese companies Murata and TDK have raised their outlooks, citing strong demand for AI servers. The Fear & Greed Index reflects heightened market anxiety as component shortages ripple through the tech and crypto sectors.
ME AI messages, driven by strong AI demand, have sparked a recovery in the passive components market, leading to supply shortages in multilayer ceramic capacitors (MLCCs). To secure supply, some customers are paying two to three times the original price to major passive component manufacturers such as Yageo and Murata, creating a bidding war where the highest bidder wins, with lead times extending to 12 to 16 months. Yageo states that MLCC demand remains extremely robust, with production line utilization continuously rising; standard products are expected to increase from around 80% to over 90% this quarter, while special products remain at high levels, pushing overall capacity closer to full load. An increasing number of AI-related customers are seeking long-term contracts to lock in capacity for six months or even several years in advance, reducing supply risks. The company is responding by expanding production in Kaohsiung, Suzhou, Vietnam, and Mexico. Industry observers note that major MLCC manufacturers prioritize large clients and long-term partners, leaving smaller customers with constrained supply and forced to pay premiums to secure materials. Japanese giants Murata and Taiyo Yuden have also raised their outlooks, citing stronger-than-expected demand from AI servers and data centers, which is driving increased usage of high-capacitance products. (Source: BlockBeats)
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