As the artificial intelligence (AI) industry grows and memory chip prices climb sharply, multilayer ceramic capacitor (MLCC) prices used in AI servers are also surging. Because AI servers consume far more power than general servers, MLCC content has increased more than threefold, driving up demand. In addition, the high-value MLCC market for AI servers is effectively split between Murata and Samsung Electro-Mechanics, and the resulting supply constraints are believed to be pushing up MLCC prices.
An MLCC is an essential component in electronic circuits that stores electricity, supplies it stably, and removes substances that interfere with signals. Despite being as small as a strand of hair, it stacks hundreds of layers of ceramic and metal plates to achieve high capacity, and is indispensable in smartphones (about 1,000 units) and electric vehicles (up to 30,000 units), earning it the nickname "the rice of the electronics industry."
According to the industry on the 8th, spot prices for MLCCs have recently risen by nearly 20%. Since last year, demand for MLCCs has increased sharply, centered on AI servers, and supply is constrained as production line utilization at major MLCC corporations such as Murata and Samsung Electro-Mechanics has reached its limit. As the shortage becomes visible, some expect the upward trend in MLCC prices to continue for the time being.
AI servers consume massive amounts of power and use high-temperature, high-capacity MLCCs, and only Murata and Samsung Electro-Mechanics can mass-produce these high-value products. Since the second half of last year, MLCC production line utilization at Murata and Samsung Electro-Mechanics has exceeded 90%, effectively running at "full capacity."
The greater the product's power consumption, the more MLCCs are needed to control current. Just as electric vehicles use two to three times more MLCCs than conventional cars, AI servers employ more than three times the MLCCs of general servers. Servers equipped with Nvidia's latest AI Semiconductor, Blackwell, are said to carry up to 10 times more MLCCs than the previous model.
Conservative production line expansions by Murata and Samsung Electro-Mechanics are also seen as fueling price increases. Park Sang-hyun, an analyst at Korea Investment & Securities Co., said, "Murata and Samsung Electro-Mechanics are maintaining a conservative strategy on new facility expansions, which is intended to deliberately prolong the supply-demand imbalance," adding, "MLCCs for AI servers can be addressed by optimizing existing production lines without massive new expansions. With limited supply, selling price increases are likely to emerge faster than expected."
Thanks to the robust MLCC business, Samsung Electro-Mechanics' earnings growth is also expected to accelerate this year. According to FnGuide, this year's operating profit forecast for Samsung Electro-Mechanics is 1.2854 trillion won, more than 40% higher than last year. Kim So-won, an analyst at Kiwoom Securities, said, "Uncertainty remains for demand for IT finished goods due to memory price hikes, but we expect quantitative and qualitative growth driven by MLCC demand for AI servers," adding, "This year's operating profit will increase 41% from a year earlier to 1.2891 trillion won."