{
  "id": 3917146,
  "title": "Shares in Chinese MLCC makers rise as AI lifts sales and profits",
  "url": "https://urgent.news/2026/08/28/shares-in-chinese-mlcc-makers-rise-as-ai-lifts-sales-and-profits",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-28T07:31:48.000Z",
  "source": {
    "name": "SCMP Tech",
    "slug": "scmp-tech",
    "url": "https://www.scmp.com/tech/article/3365571/shares-chinese-mlcc-makers-rise-ai-lifts-sales-and-profits"
  },
  "original_language": "en",
  "account": "Shares of China's leading multilayer ceramic capacitor (MLCC) manufacturers soared on Friday, driven by a surge in first-half sales and profits fueled by robust demand in the artificial intelligence sector. Leading the charge were Shenzhen-listed Chaozhou Three-Circle Company (CCTC) and Guangdong Fenghua Advanced Technology, with their shares climbing nearly 1% and 3%, respectively, in early trading. CCTC's Hong Kong shares jumped over 4%.\n\nThe impressive gains followed strong earnings reports released on Thursday. CCTC's revenue jumped 55% to 6.4 billion yuan (USD 952.3 million), while its net profit surged 56% to 1.9 billion yuan. Domestic rival Guangdong Fenghua reported a 74% year-over-year increase in net profit to 290.3 million yuan, with sales rising 26% to 3.5 billion yuan.\n\nCCTC credited the sales uptick to improving market sentiment and a recovery in MLCC prices. The company plans to focus on high-end MLCCs for server and automotive applications during the second half of 2026, aiming to breakthrough in ultra-high-capacitance, large-format products.\n\nGuangdong Fenghua also emphasized its shift towards premium offerings, noting progress in developing and scaling up production of high-growth products centered around AI computing and automotive electronics. This marks a shift from the company's previous practice of only adjusting prices for distributors.\n\nAnalysts say the MLCC industry is in the midst of an upcycle, thanks to the rapid expansion of power-intensive data centers supporting AI's growing computing needs. However, high-end MLCCs for AI servers and data centers remain dominated by Japanese Murata Manufacturing and South Korean Samsung Electro-Mechanics (SEM), both of which are operating near capacity. SEM recently raised fourth-quarter prices for standard MLCCs used in consumer electronics by 25-30%, aiming to free up capacity for higher-end products. AI-server-grade MLCCs are expected to see a 10-20% price increase.\n\nSEM recently focused on supplying MLCCs for AI applications, reporting a 24% year-on-year revenue increase to 3.5 trillion won (USD 2.5 billion) and a 143% jump in net income to 315.7 billion won in July. Murata also boosted its full-year operating profit forecast by 13% to a record 430 billion yen (USD 2.7 billion) for the financial year ending March 2027, buoyed by demand for AI servers. The June quarter saw a 21% revenue increase to 502.3 billion yen and a 64% jump in net profit to 81.4 billion yen.",
  "summary": "China’s top makers of multilayer ceramic capacitors (MLCCs) – ubiquitous components known as the “rice of the electronics industry” – saw their shares rise on Friday after reporting ballooning first-half sales and profits amid soaring demand linked to AI. Shenzhen-listed shares of Chaozhou Three-Circle Company (CCTC) and Guangdong Fenghua Advanced Technology, two of the country’s largest MLCC…",
  "key_points": [
    "Shares of top Chinese MLCC makers surge 1-3% on AI-driven sales and profits",
    "Chaozhou Three-Circle Company's Hong Kong shares jump over 4%",
    "MLCC industry booming due to AI data center expansion"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "South China Morning Post",
        "title": "Shares in Chinese MLCC makers rise as AI lifts sales and profits",
        "url": "https://urgent.news/2026/08/28/shares-in-chinese-mlcc-makers-rise-as-ai-lifts-sales-and-profits-3919576",
        "published": "2026-08-28T07:31:48.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}