Taiwan MLCC makers surge as AI server demand triples component use

AI‑driven servers are consuming 3‑5 times more multi‑layer ceramic capacitors (MLCC) than conventional servers, creating a sharp rise in demand for passive components in Taiwan. Over the past three months the stocks of Taiwanese firms such as Yageo, Hua Xin Ke, He Shen Tang, Xinchang and Lilong have doubled, prompting foreign investors to lift earnings forecasts. Morgan Stanley lifted its price target for Yageo from NT$305 to NT$1,515, reflecting optimism that AI infrastructure will sustain strong demand for MLCCs over the next two years.

While resistors and inductors see modest volume gains, MLCCs are the primary growth driver. Most AI‑server MLCCs are still supplied by Japanese and Korean makers, but their cautious expansion and focus on higher‑margin products have opened a supply gap that Taiwanese producers are filling. Companies such as Delta Electronics' subsidiary QianKun and local players like Tai‑Ching Tech and San‑Ji‑Rui‑KY are positioning to capture this market. The higher voltage and heat‑resistance requirements of AI boards, together with a shift away from traditional aluminum capacitors, have made the Taiwanese MLCC niche especially attractive to AI chip manufacturers.