AI Server Boom Triggers New MLCC Supply Squeeze AI server demand is driving a new MLCC shortage cycle, with tight supply expected through 2027 and potentially into 2028 if edge AI demand strengthens A single AI server rack can require 300,000–400,000 capacitors, far more than resistors or inductors, making MLCCs one of the biggest passive-component bottlenecks Murata and Samsung Electro-Mechanics remain the leaders in high-end AI server MLCCs, especially compact, ultra-high-capacitance parts. As they shift more capacity toward these premium products, consumer, automotive, and industrial orders are increasingly moving to Taiwanese suppliers Yageo has reached 90% MLCC utilization and is expanding capacity in Kaohsiung and Suzhou. Its combined MLCC, resistor, and tantalum capacity is expected to be 15% higher by the end of 2026 than a year earlier Walsin is running at 80–85% utilization and raised its 2026 capex budget from NT$500M–NT$1B to at least NT$3B. It expects 10–15% capacity growth in MLCCs and resistors, with a larger expansion planned for 2027 Pricing is also tightening. SEMCO is expected to raise prices by 25–30% for general-purpose X5R products and 10–20% for high-end X6S products used in AI servers The setup is increasingly favorable for Yageo and Walsin, as stronger AI demand, high utilization, rising backlogs, and order transfers from Japanese and Korean suppliers converge into the strongest MLCC expansion cycle in years