A critical component for AI servers, the multi-layer ceramic capacitor (MLCC), is now facing a major supply crunch.
The root cause lies in the rapid evolution of AI technology. First, AI servers are becoming incredibly power-hungry. The latest AI racks from companies like NVIDIA can consume over 100 kilowatts, a massive jump from previous generations. To manage this immense energy flow safely and reliably, a much larger number of specialized high-voltage, high-capacity MLCCs are needed. These tiny components are essential for ensuring a stable and clean power supply, a concept known as the Power Delivery Network (PDN).
Second, the supply side is struggling to keep up with this non-linear surge in demand. The world's top MLCC manufacturers, such as Murata, SEMCO, and Taiyo Yuden, are already running their factories at over 80% capacity. Despite this, they cannot produce enough high-end MLCCs. In response to the imbalance, they have begun to raise prices on certain products by as much as 6–13%.
This brings us to the recent warning from component supplier Holy Stone, which stated that lead times have stretched beyond 20 weeks and that the shortage will likely last until 2027. This isn't a temporary hiccup. The fact that the wait time has more than doubled from the usual 8-12 weeks signals a deep, structural bottleneck in the supply chain. It's a direct result of soaring demand from the AI power trend meeting a supply chain that is already stretched to its limits.
The financial markets have already taken notice. The stock price of SEMCO, a major MLCC producer, has surged significantly this year. This reflects investors' belief that the industry is entering a prolonged boom cycle, driven by the indispensable role of MLCCs in the AI revolution.
- Glossary
- MLCC (Multi-layer Ceramic Capacitor): A tiny electronic component that stores and regulates the flow of electricity, crucial for stabilizing power in complex circuits like those in AI servers.
- Lead Time: The total time it takes from placing an order for a product to receiving it. A longer lead time indicates high demand or supply constraints.
- Power Delivery Network (PDN): The entire system that delivers electrical power from the source to the various components within an electronic device, ensuring it is stable and clean.