This Week In AI Chips - AI Surge Fuels MLCC Demand and Supply Challenges

NVIDIA Corporation

NVIDIA Corporation

NVDA

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Recent developments in the AI chip sector have led to a significant surge in demand for high-end multilayer ceramic capacitors (MLCCs), crucial components in AI server platform upgrades and custom ASIC development by cloud service providers. According to TrendForce, the book-to-bill ratios for leading Japanese and Korean MLCC suppliers have reached their highest levels since the pandemic, suggesting potential supply shortages. The AI-driven demand has caused a shift in production priorities toward high-capacitance, low-voltage MLCCs, impacting other sectors like consumer electronics and automotive industries. This trend may lead to increased material costs and extended lead times as suppliers attempt to keep pace with the growing requirements of AI applications.

In other trading, Suzhou Centec Communications (SHSE:688702) was trading firmly up 10.3% and closing at CN¥357.00. At the same time, FormFactor (NasdaqGS:FORM) lagged, down 16% to end trading at $123.59.

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  • NVIDIA (NasdaqGS:NVDA) closed at $194.83 down 1.4%.
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