Seoul [South Korea], June 3 (ANI): Nvidia’s next-generation Vera Rubin AI platform is driving a pointy improve in demand for multilayer ceramic capacitors (MLCCs), creating new alternatives for suppliers equivalent to Samsung Electro-Mechanics as synthetic intelligence infrastructure turns into extra complicated and power-intensive, in line with a report by The Korea Herald.
The report, citing a Morgan Stanley evaluation, stated the MLCC content material of Nvidia’s next-generation VR200 NVL72 server rack is estimated at USD 4,320, in contrast with roughly USD 1,530 within the previous-generation GB300 system.
This represents a rise of 182 per cent, highlighting the rising significance of capacitors in superior AI computing methods.
MLCCs are small digital parts that assist stabilise energy supply by absorbing fast voltage fluctuations in processors. As AI methods change into bigger and devour extra energy, the necessity for these parts has elevated considerably.
According to the report, a single high-end AI server rack can require a whole lot of hundreds of MLCCs, making them a essential a part of the AI {hardware} provide chain.
Nvidia just lately introduced at Computex 2026 that Vera Rubin had entered full manufacturing, additional rising expectations of robust demand for these parts.
The report stated demand is rising a lot quicker than provide.
Goldman Sachs estimates that MLCC demand from AI servers will greater than quadruple between 2025 and 2030, whereas business manufacturing capability is predicted to develop solely barely above 10 per cent yearly.
It said ‘The sharp improve is tightening provide in a market the place demand is already outpacing manufacturing, permitting producers equivalent to Samsung Electro-Mechanics to lift costs and safe long-term provide contracts’.
According to the report, Japanese producers Murata and Taiyo Yuden, that are among the many market leaders in MLCC manufacturing, elevated costs for AI server and automotive parts by 15 to 35 per cent this 12 months.
Japanese customs information for April additionally confirmed that common MLCC export costs had been up 16 per cent in comparison with a 12 months earlier.
The report famous that provide agreements, as soon as frequent primarily within the semiconductor business, at the moment are spreading to the capacitor market as corporations search to safe future provides.
Samsung Electro-Mechanics confirmed throughout its first-quarter earnings name that it has began signing legally binding long-term agreements with prospects, together with main AI know-how corporations.
‘We are securing ahead quantity via binding mid- to long-term contracts,’ Lee Tae-gon, head of strategic advertising at Samsung Electro-Mechanics, informed analysts.
According to Yang Seung-soo, an analyst at Meritz Securities, long-term contracts within the AI capacitor market are not primarily about defending towards worth fluctuations however about securing restricted provides earlier than opponents do.
The report added that the tight provide atmosphere might proceed to help increased costs.
For Samsung Electro-Mechanics, the world’s second-largest producer of high-end MLCCs after Murata, the development might considerably profit earnings.
Analysts estimate {that a} 10 per cent improve in MLCC costs might add round 600 billion received (USD 395 million) to the corporate’s annual working revenue.
The report highlighted that whereas chips and reminiscence merchandise have dominated discussions round AI infrastructure, capacitors are rising as one other essential element as demand for high-performance AI servers continues to develop. (ANI)