Shares in MLCC producers rise as AI boosts sales and profits

By the Editorial Team · Saturday, August 29, 2026

China’s top MLCC manufacturers, Chaozhou Three-Circle and Guangdong Fenghua, reported significant revenue and profit growth in the first half of 2026, driven by rising demand from AI-related applications. This surge highlights a broader industry trend toward higher prices and capacity expansion as companies pivot to serve rapidly growing AI computing and automotive electronics markets.

Shares of China’s leading multilayer ceramic capacitor (MLCC) manufacturers rose following the release of strong first-half financial results that reflected growing demand driven by artificial intelligence (AI) applications. Chaozhou Three-Circle (Group) (CCTC) and Guangdong Fenghua Advanced Technology (Holding), two major MLCC producers, saw notable gains in their stock prices during trading on Thursday and Friday.

CCTC, listed on Shenzhen and Hong Kong exchanges, reported a 55 percent increase in revenue to 6.4 billion yuan (approximately HK$7.5 billion) for the first half of 2026, alongside a 56 percent rise in net profit to 1.9 billion yuan. Guangdong Fenghua posted a 74 percent year-on-year growth in net profit, reaching 290.3 million yuan, with sales climbing 26 percent to 3.5 billion yuan during the same period.

Both companies credited their improved results to stronger market conditions, a rebound in MLCC prices, and surging orders linked to AI technology, particularly from data centers requiring substantial power and capacity. These capacitors are essential electronic components widely used across industries, earning them the moniker “the rice of the electronics industry.”

Looking ahead, CCTC indicated plans to intensify its focus on high-end MLCC products tailored for server and automotive applications. The company aims to achieve breakthroughs in producing high-capacitance, large-format capacitors at scale. Guangdong Fenghua similarly emphasized its strategic shift toward advanced products, noting progress in developing and expanding production for AI computing and automotive electronics markets, which they identified as key growth drivers.

Despite these advances, the high-performance MLCC segment remains largely dominated by Japan’s Murata Manufacturing and South Korea’s Samsung Electro-Mechanics (SEM). Both are reportedly operating near 95 percent capacity amid surging orders. To address capacity constraints, SEM recently announced a 25 to 30 percent price increase for standard MLCCs used in consumer electronics for the fourth quarter, aiming to curb demand in lower-end segments and prioritize production for high-end applications.

Prices for MLCCs designed specifically for AI servers and data centers are also expected to rise by 10 to 20 percent, signaling a significant industry upcycle. Market analysts noted that this pricing strategy marks a departure from previous practices of limiting price adjustments, underscoring the current strong demand environment fueled by the rapid expansion of AI infrastructure worldwide.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.