{
  "id": 9037840,
  "title": "China’s MLCC market splits in 2 as AI server demand outpaces consumer electronics",
  "url": "https://urgent.news/2026/09/22/chinas-mlcc-market-splits-in-2-as-ai-server-demand-outpaces-consumer-9037840",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-09-22T00:00:22.000Z",
  "source": {
    "name": "SCMP Tech",
    "slug": "scmp-tech",
    "url": "https://www.scmp.com/tech/article/3368295/chinas-mlcc-market-splits-two-ai-server-demand-outpaces-consumer-electronics"
  },
  "original_language": "en",
  "account": "In Shenzhen, the China hardware hub, a speculative surge in consumer multilayer ceramic capacitor (MLCC) prices has now given way to a significant correction. However, server-grade MLCC prices remain elevated, according to Wang Jun, an MLCC distributor in Huaqiangbei, a commercial zone known for electronic components. The consumer-grade MLCC market, often called the \"rice of the electronics industry\", has seen prices drop by two-thirds from their two-month peak, though prices are still above their previous levels, driven more by speculative activity than genuine demand, Wang explained. A modest rebound in prices has occurred due to reports of Murata discontinuing some consumer MLCC models, with mainstream product prices expected to stabilize. Domestic companies are aggressively ramping up to meet demand, reaching saturation in the consumer MLCC market, according to Wang. Meanwhile, server-grade MLCC demand remains strong in Huaqiangbei, with prices of high-capacitance MLCCs used in AI servers surging up to five times in the past year. Supply for server MLCCs is described as critically tight by a vendor trading MLCCs from major Japanese manufacturers like Murata, TDK, and Taiyo Yuden. CCTV reported that some high-demand models have surged to as much as 10 times their original prices since the rally began in June, while gains in consumer-grade MLCCs proved short-lived due to weak demand for consumer electronics. As major suppliers scale back lower-margin mature parts, Chinese manufacturers are well-positioned to expand sales in those areas, according to Morningstar director Kazunori Ito. Leading suppliers are increasingly shifting capacity away from mature parts to meet AI-related demand, with Murata expected to halt production of selected models across nine product series. While Chinese MLCC makers still lag behind Japanese and Korean suppliers in the highest-end categories, they are improving competitiveness in standard products and mid-to-upper range segments by leveraging local material sourcing, proximity to Chinese electronics manufacturers, and cost advantages. Domestic MLCCs for AI applications are still in the trial phase, but a Lanbaike Electronics manager believes they will achieve major breakthroughs in the near future.",
  "summary": "In China’s hardware hub in Shenzhen, the speculative frenzy around consumer multilayer ceramic capacitors (MLCCs) has cooled into a sharp price correction, but prices for artificial intelligence server components remain elevated. Spot prices for consumer-grade MLCCs, often dubbed the “the rice of the electronics industry”, have fallen by two-thirds from their peak two months ago, according to…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "Tom's Hardware",
        "title": "Huawei shelves global AI chip rollout as China's own demand outstrips supply — 15,488-chip Atlas clusters leverage optical networking to counter Nvidia, scales to 120 EFLOPS",
        "url": "https://urgent.news/2026/09/21/huawei-shelves-global-ai-chip-rollout-as-chinas-own-demand-outstrips",
        "published": "2026-09-21T14:30:00.000Z"
      },
      {
        "outlet": "TechRadar",
        "title": "Huawei Ascend 960 SuperPoD aims to surpass Nvidia AI hardware in China — 960E with over 4,000 NPUs and an upgraded UnifiedBus Interconnect aims for 10 trillion parameters",
        "url": "https://urgent.news/2026/09/21/huawei-ascend-960-superpod-aims-to-surpass-nvidia-ai-hardware-in",
        "published": "2026-09-21T22:05:00.000Z"
      },
      {
        "outlet": "SCMP Business",
        "title": "China’s MLCC market splits in 2 as AI server demand outpaces consumer electronics",
        "url": "https://urgent.news/2026/09/22/chinas-mlcc-market-splits-in-2-as-ai-server-demand-outpaces-consumer",
        "published": "2026-09-22T00:00:22.000Z"
      }
    ]
  },
  "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."
}