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According to TrendForce, the MLCC industry is experiencing a structural shift as AI demand continues to displace traditional markets. Leading Japanese and Korean suppliers are increasingly reducing their supply of consumer-oriented MLCCs and reallocating capacity to AI-related applications. This change is opening doors for Chinese suppliers, many of whom are now undergoing MLCC qualification with global brands such as Dell, HP, ASUS, and Acer.
Murata announced on September 10th that it would discontinue certain products, such as general-purpose GRM types for consumer use and some automotive-grade components, which typically have gross margins below 5%. The company plans to shift focus toward advanced, miniaturized, high-capacitance products for AI servers, data centers, and automotive electronics.
Orders will be accepted until 2028, with final shipments in 2029. This three-year transition aims to prevent supply shortages like those in 2018 and reflects a long-term move by Japanese and Korean firms to tighten supply of consumer and lower-tier automotive MLCCs.
TrendForce notes that supply shortages and cost pressures from AI-related capacity crowding are unexpectedly opening the door for Chinese suppliers that have long struggled to enter global brands’ supply chains. Dell, HP, ASUS, and Acer have reportedly completed qualification of Chinese memory suppliers. Through introductions by ODMs including Huaqin, LCFC, and Luxshare, these brands have also begun qualifying MLCC products from Chinese suppliers such as Viiyong and Chaozhou Three-Circle. Quanta and Pegatron have likewise visited Chaozhou Three-Circle and initiated qualification procedures.
TrendForce believes that as Japanese and Korean MLCC makers prioritize capacity for high-end AI applications, the supply of mid- to high-capacitance consumer-grade products will tighten and more orders will spill over to Chinese suppliers. While constraints in high-end yields and production capacity mean Chinese suppliers are unlikely to challenge the dominance of Japanese and Korean manufacturers in AI server-grade products in the near term, their adoption as alternative sources is set to expand among global OEMs and ODMs in general-purpose servers, consumer electronics, and lower-end automotive applications.
