As AI applications grow in popularity, the components powering this technology rise in demand. Over the last few months, the industry has seen the meteoric rise of memory components that help shoulder the computational demands of artificial intelligence. HBM and solid-state drives (SSDs) have been the most popular components within the DRAM and NAND flash sectors, respectively, and orders have surged thanks to their favorable uses in AI.
TrendForce reports that MLCC manufacturers have the same optimism that these passive components could see the same level of demand as HBM and SSDs. According to a report by the Economic Daily News, “the AI boom has significantly increased the use of passive components, particularly in AI PCs and AI servers.”
The news comes from an interview with Murata President Norio Nakajima, who revealed that the current AI trend “is unstoppable, leading to an expansion in MLCC applications.”
In a report by Nikkei Asia, Murata states that the end-use of consumer electronics, such as smartphones and laptops, will propel MLCC consumption, boosted by AI server demand. Nakajima went on to note that Murata has been increasing capacity utilization for MLCC for some time now, expecting a greater rise from 85% to 90% this quarter.
In TrendForce’s article on the situation, the market research firm elaborates that Murata has been on the pulse with recent market trends. Early in 2024, Murata reported that a recovery in component shipments for the smartphone market and increased capacity utilization for MLCC plants would come later in the year.
Over the year, the average MLCC usage per AI PC has surged by a reported 80% compared to traditional PCs, with usage in AI servers doubling from an average of 3,000 to 4,000. According to TrendForce, the increased use of high-speed computing environments will only contribute to the growing demand for high-capacity and high-voltage MLCCs.
Following Murata’s optimism, passive original component manufacturers (OCMs) Walsin Technology and Yageo are also jumping into the fray to capture the new opportunities presented by AI. Both have seen a notable recovery in their operations, “marking the beginning of a bullish phase for the passive component market.”
As AI continues to boom, Yageo believes that more opportunities will emerge with customizable orders for specific product requirements. This will be especially true for those who need high temperature and high-current tolerance, which is common for AI applications. Their heavy computational demands on data centers push for greater energy use and, by extension, cooling systems.