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MLCC spot prices surge up to 10-fold then retreat as AI demand clashes with weak consumer electronics
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Multilayer Ceramic Capacitors (MLCCs), essential components in electronics from smartphones to AI servers, have experienced extreme price volatility. Driven by surging AI computing demand, overseas manufacturers shifted production capacity from consumer-grade to high-end AI products, triggering supply fears. By June, spot prices for some popular models surged 7-8 times in one month, reaching 2-10 times original levels. However, by early July, prices reversed as channel distributors offloaded inventory amid weak consumer electronics demand. Merchant Chen Zhixiao cited the common 0603-104 capacitor, which rose from 5 yuan per thousand units in Q2 to 30 yuan at its late June peak, before falling back to 10 yuan. The market shows a hot-cold dichotomy between AI-driven high-capacity models and standard consumer-grade products.
Source report
MLCCs (Multilayer Ceramic Capacitors), often referred to as the "rice of the electronics industry," are essential components in virtually all electronic devices — from smartphones and home appliances to AI servers and new energy vehicles.
Recently, the component market has exhibited extreme divergence:
- High-capacity models, driven by AI demand, face severe shortages and skyrocketing prices, with some spot prices surging several-fold.
- Standard consumer-grade products have risen sharply before pulling back.
This hot-cold dichotomy reflects the disruptive impact of the AI computing power wave.
Market Timeline
The trend began fermenting at the end of May. News of exploding AI computing demand rippled through the component market as overseas major manufacturers shifted substantial consumer-grade production capacity toward high-end AI products. Concerns over tightening supply of conventional materials prompted channel distributors to stockpile and aggressively purchase inventory.
By June, the spot market entered a feverish state characterized by "daily price changes, or even hourly fluctuations." Some popular models saw gains of 7–8 times within just one month, with spot prices soaring to 2–10 times their original levels.
By early July, spot prices peaked and then rapidly reversed course. Channel distributors who had heavily stockpiled earlier concentrated on offloading inventory, but weak downstream demand for consumer electronics terminals lacked sufficient buying support, leading to a clear pullback in consumer-grade MLCC prices.
Example Price Fluctuation
Merchant Chen Zhixiao cited the most common part number, 0603-104, as an example:
"This is the most frequently used capacitor among all types. In the second quarter, it cost around 5 yuan per thousand units; at its peak in late June, it sold for up to 30 yuan, and now it has fallen back to 10 yuan."
(Source: CCTV Finance)
Source
财联社Eastern
Part of this Story
AI demand drives MLCC spot prices up to tenfold, creating market divergence