As Japanese and Korean giants move upmarket, China’s MLCC firms see their chance

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As Japanese and Korean giants move upmarket, China’s MLCC firms see their chance

As demand for AI servers soars, leading Japanese and South Korean multilayer ceramic capacitor (MLCC) makers are shifting further upmarket, opening the door for Chinese competitors to gain share in lower-end segments despite lagging their rivals in advanced technology. MLCCs – often referred to as the “rice of the electronics industry” because of their ubiquity – are tiny electronic components that regulate and stabilise electrical currents in devices ranging from smartphones

Chinese multilayer ceramic capacitor (MLCC) manufacturers are poised to expand their market share, particularly in lower-end product segments. This opportunity arises as major Japanese and South Korean MLCC producers increasingly focus on higher-value, advanced technology markets. The surge in demand for AI servers is driving this strategic shift among the industry leaders.

While Chinese firms still trail in cutting-edge technology, the move by established players creates a vacuum in less sophisticated applications. MLCCs, essential for regulating electrical currents in a vast array of electronic devices, are fundamental components in modern technology.

This shift allows Chinese companies to grow within the critical MLCC market, potentially impacting global supply chains for electronic components.

#market#tech#smartphone

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