Murata: MLCC Deep Dive - From ceramic to gold and the AI Data Center catalyst (Part 1)

For years, Multi-layered ceramic capacitors (MLCCs) were volume-based commoditized products in consumer electronic devices. AI Data Center (DC) demand for these electronic components has led to tight supply in high-end and edge MLCCs, resulting in price hikes and high Book-to-Bill ratios. This Deep Dive looks into the microscopic world of electronic components within the circuit board. Strict data center specifications have asymmetrically benefited high-end/cutting-edge MLCCs, which must withstand high changes in power amidst tight spaces and high temperatures. As AI Data Center power grows by 19% CAGR till 2030E, we expect cutting-edge MLCC demand to grow by 33% CAGR to USD27.7Bn by 2032E. Difficulty in producing cutting-edge MLCCs, requiring miniaturization, material and manufacturing specialty, should keep supply tight at least till 2030E, as only a few companies such as Murata and Samsung Electro-Mechanics (SEMCO) can produce them effectively at high yields. Capacity is estimated t