The multilayer ceramic capacitor (MLCC), known as the "rice of the electronics industry" and used in almost all electronic devices, is reportedly entering a supercycle, similar to semiconductors. MLCCs stabilize voltage and supply electricity instantaneously next to semiconductors. Some product lines are so small that they are thinner than a human hair (0.3mm) and are not easily visible to the naked eye. With the expansion of artificial intelligence (AI) servers, automotive electronics, and 5G infrastructure, MLCC demand is increasing, leading to upward revisions in performance forecasts for major manufacturers.

● Performance Forecasts Raised and Factories at Full Capacity

According to global market research firm Markets and Markets on the 24th, the MLCC market (total revenue of related companies) is expected to grow from USD 15 billion in 2025 to USD 21.93 billion in 2030, with an average annual growth rate of 7.9%. Currently, the global MLCC market is led by Japan's Murata Manufacturing with about a 40% market share, followed by Samsung Electro-Mechanics with over 20%.

Last month, Murata Manufacturing revised its annual sales forecast from JPY 1.64 trillion (approximately KRW 15.4 trillion) to JPY 1.74 trillion, and its operating profit from JPY 220 billion (approximately KRW 2.07 trillion) to JPY 280 billion. Murata attributed the upward revision to "better-than-expected demand for sets such as smartphones, PCs, and servers."

The factory utilization rate of Samsung Electro-Mechanics, the global second-largest MLCC manufacturer, is also rising. According to the Financial Supervisory Service's electronic disclosure, the average factory utilization rate of Samsung Electro-Mechanics' component division, responsible for MLCC production, increased from 59% in the first quarter of 2023 to over 80% in 2024, reaching 99% in the third quarter (July to September) this year, indicating full capacity.

● Demand Increase in AI and Electric Vehicles

The advancement of AI and the electric vehicle industry is analyzed as a factor accelerating MLCC growth. Approximately 20,000 to 30,000 MLCCs are required per electric vehicle. A single latest AI server contains about 28,000 MLCCs. Considering that a conventional server contains about 2,200 MLCCs, the spread of AI is increasing MLCC demand. The expansion of high-bandwidth memory (HBM) is also supporting the increase in MLCC demand. The MLCCs required in these advanced fields are high-performance MLCCs requiring high levels of technology, an area where Murata and Samsung Electro-Mechanics have competitive strength.

During the third-quarter (July to September) earnings conference call, Samsung Electro-Mechanics stated that "MLCC supply is 'tight' due to increased demand for large-capacity products for industrial and automotive applications, centered on AI servers," and anticipated that this situation would persist for some time.

The securities industry expects the MLCC strength to continue for the time being. NH Investment & Securities released a report on the 24th, predicting "a high possibility of MLCC supply shortages if the current AI investment cycle continues." IM Securities analyzed that "in the situation of excess demand for AI server MLCCs, only a few companies, such as Samsung Electro-Mechanics and Murata, are capable of supplying them."

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