MLCC Market Poised for Bull Run, Goldman Sachs Predicts Record Growth Fueled by AI Servers

The market for Multilayer Ceramic Capacitors (MLCCs) is on the cusp of a significant bull market, driven by the burgeoning demand from artificial intelligence servers, according to a report by Goldman Sachs. The financial institution forecasts that the MLCC market will expand dramatically, reaching an unprecedented size of approximately NT$184 billion (920 billion Japanese yen) by 2030. This growth trajectory is expected to be the largest and longest-lasting in the industry's history.

MLCCs have rapidly ascended the cost hierarchy within AI server components, now ranking as the third-largest expense item after Graphics Processing Units (GPUs) and memory modules. This elevated status highlights their critical role in the performance and functionality of advanced AI hardware. The increasing complexity and power requirements of AI servers necessitate a greater number of these essential passive components.

Reflecting this heightened demand and supply constraints, leading MLCC manufacturers have already begun adjusting their pricing strategies. Murata Manufacturing, a global leader in passive components, implemented price increases ranging from 15% to 35% for AI server-related MLCCs starting April 1. Similarly, Taiyo Yuden announced price hikes for select product lines effective in May.

Goldman Sachs estimates that a modest 5% average price increase for MLCCs could significantly boost the operating profits of key players like Murata and Taiyo Yuden. For Murata, such an increase could lead to a roughly 13% rise in operating profit for the 2027 fiscal year, while Taiyo Yuden could see a substantial 37% increase. This pricing trend mirrors the earlier price escalation observed in the memory market, suggesting a similar supply-demand dynamic at play within the MLCC sector.