The ‘rice of electronics’: how AI-driven demand for MLCCs triggered a supply bottleneck
Often dubbed “the rice of the electronics industry”, multilayer ceramic capacitors (MLCCs) are the smallest yet indispensable components powering modern innovations from smartphones to electric vehicles (EVs). These tiny capacitors are currently under the spotlight because the insatiable computing needs of artificial intelligence (AI) have caused an explosion in demand, a surge described as “scary” by Katsuya Sase, CEO of Japanese MLCC maker Taiyo Yuden. Here is what you need
Multilayer ceramic capacitors, essential for modern electronics, are facing supply shortages due to rising demand. The components are critical for devices like smartphones and electric vehicles. AI development has significantly increased the need for these capacitors. Industry experts have noted the rapid growth in demand as alarming. Supply chain disruptions are affecting production timelines. Companies are struggling to meet the growing needs of the market. The situation highlights the interdependence of technology sectors. This bottleneck could impact future tech advancements.
The shortage of MLCCs could slow down the development and production of key electronic devices.
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