MLCC makers shift focus from consumer goods to AI applications

The Multi-Layer Ceramic Capacitor (MLCC) industry is undergoing a structural shift as Japanese and Korean manufacturers reallocate production capacity from consumer electronics to AI-related applications. Leading suppliers are reducing the supply of general-purpose and lower-tier automotive components to focus on high-capacitance, miniaturized products required for AI servers, data centers, and advanced automotive electronics.

Murata has announced plans to discontinue certain products, including general-purpose GRM types for consumer use and specific automotive-grade components that typically yield gross margins below 5%. The company will accept orders for these items until 2028, with final shipments expected in 2029. This transition is intended to prevent the type of supply shortages seen in 2018 while prioritizing high-margin AI sectors.

This shift is creating opportunities for Chinese suppliers to enter global supply chains. Major brands including Dell, HP, ASUS, and Acer are reportedly qualifying Chinese MLCC manufacturers such as Viiyong and Chaozhou Three-Circle through Original Design Manufacturers (ODMs) like Huaqin, LCFC, and Luxshare. Additionally, companies such as Quanta and Pegatron have initiated qualification procedures with Chinese suppliers.