Chinese Suppliers Have Entered Capacitor Supply Chain Race
Domestic firms are pursuing certification for general-purpose capacitors as industry leaders pivot to AI-driven demand.
Updated on Sept. 28, 2026 in Semiconductors
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Chinese capacitor manufacturers Chaozhou Three-Circle and Viiyong are currently undergoing supply chain verification processes with major PC and original design manufacturers. This shift occurs as incumbents redirect production capacity toward high-value AI server components.
Why it matters
The transition marks a restructuring of the multilayer ceramic capacitor market, where general-purpose components are being deprioritized by incumbents in favor of high-spec parts for data centers. This exit by market leaders creates an opening for new entrants to gain scale in price-sensitive segments.
Samsung Electro-Mechanics is maintaining a high 90% operation rate for its multilayer ceramic capacitor (MLCC) business to support $2.43 billion in AI server contracts. Simultaneously, Murata is exiting the low-profit, general-purpose capacitor market.
The players
Samsung Electro-Mechanics
A South Korean electronics component manufacturer specializing in high-performance MLCCs for AI servers.
Murata Manufacturing
A Japanese electronic component leader currently restructuring its production portfolio to focus on high-spec data center applications.
Chaozhou Three-Circle
A Chinese manufacturer pursuing certification to enter the global supply chain for general-purpose capacitors.
Viiyong
A Chinese firm actively seeking validation from global PC and ODM companies for its component production.
The details
Multilayer ceramic capacitors (MLCCs) are passive components used to regulate current flow in electronic circuits. As firms like Samsung and Murata reorganize, they are moving away from standardized, low-margin capacitors to focus on high-reliability parts required for high-density AI data center infrastructure. Chinese firms are currently participating in quality and capacity certification procedures with major PC and ODM firms including Dell, HP, ASUS, and Acer to replace this volume.
Timeline
2028: Murata will accept final new orders for discontinued general-purpose MLCCs.
2029: Murata will conduct final shipments of all general-purpose MLCC products.
The Tech Race
The transition in the capacitor market follows the broader industry trend of reallocating manufacturing capacity to prioritize high-margin AI-adjacent components. As global giants pivot to AI server infrastructure, the resulting supply gap in general-purpose parts provides a entry point for emerging suppliers.
The shift in production capacity is unlikely to impact individual consumer hardware costs immediately, but it signals a change in how global electronics are sourced. Industry buyers will need to monitor the certification status of new suppliers to ensure consistency in component reliability as incumbents phase out legacy product lines.
The takeaway
The pivot by Japanese and Korean firms toward high-spec AI hardware creates a significant vacuum in the global market for standard passive components. Readers should track the 2028-2029 window, when Murata finalizes its exit, as this will confirm the timeline for new suppliers to gain market share.
Further reading
For more on market shifts in the hardware industry, visit the Semiconductors section.
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