Taiyo Yuden Faces Scary AI Server Demand, Straining High-End MLCC Supply
Updated
Updated · Bloomberg · May 28
Taiyo Yuden Faces Scary AI Server Demand, Straining High-End MLCC Supply
1 articles · Updated · Bloomberg · May 28
Taiyo Yuden said demand for its high-end AI server components has reached “scary” levels, stretching capacity and raising the risk of supply-chain disruptions.
CEO Katsuya Sase said the Tokyo-based company will likely need to accelerate spending to expand output as orders for AI infrastructure keep climbing.
The pressure centers on multilayer ceramic capacitors, or MLCCs—tiny parts that regulate and stabilize power flow and are emerging as a bottleneck in building AI data centers.
Taiyo Yuden and Murata Manufacturing make up most global supply of high-end MLCCs, leaving the fast-growing AI server market exposed to constraints at a small group of suppliers.
With factories prioritizing AI, will the production shift cause shortages and price hikes for cars and consumer electronics?
Japan dominates a critical AI component. How does this supply chokepoint reshape the global technology and investment landscape?
Can new chip architectures solve the AI industry's 'scary' and growing addiction to thousands of tiny capacitors?