Leading passive component maker Shinichi Murata is about to announce a round of price adjustments on April 30
A new wave of MLCC price hikes is surging, and domestic substitution is entering a critical window period
Recently, multilayer chip ceramic capacitors (MLCCs), known as the "rice of the electronics industry," have been experiencing a strong price increase cycle. Spot prices in the market have surged, industry leaders have issued price adjustment notices one after another, and a "battle for high-end MLCCs" driven by AI servers and smart vehicles has already begun. Chinese manufacturers are accelerating their breakthrough amid this wave of industrial upheaval.
The wave of price hikes is spreading, and leading players are setting the tone for the market
The MLCC spot market has already taken the lead. According to previous reports, since the first quarter of 2026, mainland channel merchants have increased their quotations for mid-to-high capacity, automotive-grade, and industrial-grade products by 10%-20%. This upward trend is rapidly spreading to the original manufacturers and triggering global price adjustments. Murata, the world's largest MLCC supplier, has taken action by issuing price increase notices to customers in March 2026, raising prices by 15%-35% across core categories such as high-capacity MLCCs for AI servers and high-end automotive-grade products. The new pricing system officially took effect on April 1.
Industry attention is focused on Murata's next move. According to industry sources, Murata is expected to announce its MLCC pricing strategy at the April 30 earnings conference, leaving the market holding its breath. Murata holds over 40% of the global MLCC market share, especially in the AI server sector, with a share as high as 70%. Its pricing strategy is regarded as a global industry trendsetter.
Driven by demand, cost, and supply, the high-end market is structurally tight
This round of price increases is driven by strong demand, rising costs, and an imbalance in the supply structure.
On the demand side, AI servers and new energy vehicles are the two core engines. According to the latest data as of March 2026, a single NVIDIA GB300 platform AI server is equipped with about 30,000 MLCCs, with a single cabinet consuming as much as 440,000 units—10 times that of ordinary servers and 30 times that of smartphones. Meanwhile, the usage of MLCCs per smart vehicle has reached 10,000 to 15,000 units, with L2/L3 level ADAS systems alone requiring 1,500 to 3,000 units, continuously driving up demand for automotive-grade products.
On the cost side, the sharp rise in prices of major raw materials provided strong support. Silver accounts for as much as 42%-58% of MLCC production costs, and its international spot prices have risen significantly since the third quarter of 2025. Prices of metals such as nickel and copper also rose simultaneously, directly driving up production costs for manufacturers.
On the supply side, structural imbalances are key. Global capacity shows divergence: Japanese and Korean leaders focus on high-end markets and control expansion pace; Domestic manufacturers are expanding production mainly on mid- to low-end standard parts. Currently, delivery times for high-capacity, high-voltage MLCCs used in AI servers and high-end vehicles have been significantly extended, some models are experiencing shortages, highlighting the scarcity of high-end production capacity. Murata's related production lines have reached an operational rate of 95%, and delivery cycles have been extended from the usual 4 weeks to over 20 weeks.
China MLCC: High-end breakthroughs and accelerated domestic substitution
Facing a wave of price increases and a supply-demand gap in the high-end market, Chinese MLCC manufacturers are entering a strategic opportunity period to accelerate domestic substitution and high-end breakthroughs, with frequent recent moves.
In terms of technological breakthroughs and mass production, leading domestic companies have made significant progress. Fenghua Hi-Tech confirmed on its interactive platform that its 01005 specification (imperial 0.4mm x 0.2mm) ultra-micro MLCCs have achieved mass supply, marking an important milestone in entering the high-end electronics supply chain. Sanhuan Group has made breakthroughs in ultra-thin dielectric layer technology, with its 01005 size MLCC now having 2,000 layers and a capacity increased to 10μF, approaching the international leading level.
In terms of high-end certification and market introduction, domestic automotive-grade products have achieved key breakthroughs. In March 2026, Lihexing announced that its automotive-grade MLCC products have passed the AEC-Q200 reliability certification; Dali Cap's related products are also expected to pass certification in the second quarter and will soon enter the supply chains of automakers such as BYD and NIO. This breaks the long-standing monopoly of Japanese manufacturers in the automotive-grade market and opens up space for domestic substitution.
Industrial chain collaboration and capacity building are also being strengthened. Microspace Technology has launched an MLCC solution dedicated to AI servers and has implemented it with leading customers. Xinsheng Advanced Ceramics, a joint venture between Xinsheng Microelectronics and Jingdezhen, has started operations with a high-end MLCC production line with a total investment of 2 billion yuan, aiming to build a domestic high-end supply base. Products from Fenghua Hi-Tech and Sanhuan Group have successfully been supplied in bulk to server manufacturers such as Huawei and Inspur.
Market performance reflects industry prosperity and expectations for domestic substitution. On April 13, the A-share MLCC sector index rose by 2%, with stock prices of industry chain companies such as Fenghua Hi-Tech, Sanhuan Group, and Guoci Materials showing active performance. Analysts point out that this round of price increases is more structural, with overseas leaders squeezing out high-end capacity for conventional products, providing domestic MLCC manufacturers with opportunities to accelerate substitution or follow suit with price hikes. Chinese manufacturers are leveraging their synergistic advantages across the complete industry chain from materials and manufacturing to applications to seek a breakthrough in the changing global MLCC high-end market.
