Murata Manufacturing announced plans to stop accepting new orders for general-purpose MLCCs and redirect production toward high-value-added products for AI servers. The move also drew market attention to developments at a major Chinese electronic components manufacturer.
As a major Chinese electronic components manufacturer saw its shares hit the daily price limit, Murata Manufacturing announced that it would stop accepting new orders for general-purpose MLCCs, prompting market discussion of moves by competing companies. Murata's move was seen as one factor behind the surge in the share price of Fenghua Hi-Tech.
The suspension was explained as a way to concentrate production on AI-related products in response to surging demand for high-value-added products for AI servers, rather than a withdrawal from the general market. This has highlighted growing demand for AI chips centered on GPUs, memory and MLCCs.
MLCCs are important components for stabilizing power supplies and processing signals, and AI servers require large quantities of high-performance components. According to TrendForce estimates, each AI server uses up to approximately 28,000 MLCCs, while Samsung Electro-Mechanics estimates that up to 60,000 high-end MLCCs are used per rack.
At present, only a limited number of companies can manufacture high-end MLCCs for AI servers, and Murata Manufacturing maintains a leading position in terms of technology. Japanese and South Korean companies are seen as having a technological advantage, while the future growth of Chinese companies is viewed as depending on both gross margins and expanding demand.