Recently, major foreign-funded institutions have successively released research reports, unanimously optimistic about the development prospects of the MLCC industry. Coupled with the continuously tightening supply-demand balance, the MLCC sector has gained surging popularity, and the industry has officially entered a new cycle of high-boom growth.

Multiple foreign financial institutions have issued positive outlooks for the industry trajectory. UBS states that China’s MLCC industrial chain has embarked on an upward prosperity cycle, with explosive demand for AI servers acting as the core growth driver for the sector. After analyzing NVIDIA’s new Rubin architecture servers, Morgan Stanley estimates that their MLCC consumption has surged by 182% compared with previous generations. Goldman Sachs also clearly points out that MLCC has become the third-largest cost component of AI servers, second only to GPUs and memory chips. Based on assessments from numerous institutions, industry inventory keeps declining while supply gradually tightens. MLCC prices are highly likely to rise in the next six months, and the market upturn is set to persist.

As a widely applied passive component, MLCC is known as the "rice of the electronics industry". Boasting compact size, superior performance and long service life, it is extensively applied in all types of electronic products. Consumer electronics, AI servers and automotive electronics constitute the three major pillars driving industry expansion. Statistics show the MLCC market size for consumer electronics reached approximately USD 5 billion in 2025, accounting for 34.1% of the total market, and is projected to expand to USD 9.1 billion by 2034. The automotive electronics segment hit around USD 3.8 billion (25.7% market share), with an expected value of USD 8.8 billion in 2034.

AI servers represent the biggest source of incremental demand. A single AI server consumes 8 to 10 times more MLCCs than a traditional server. Relevant forecasts indicate that from 2025 to 2029, the MLCC market supporting global edge AI devices will achieve a compound annual growth rate (CAGR) of 54.5%, reaching CNY 146.8 billion by 2029. Driven jointly by these three sectors, the global MLCC market was valued at roughly USD 14.8 billion in 2025, forecast to hit USD 28.6 billion by 2034 with a 10-year CAGR of 7.5%, showcasing ample room for industrial growth.

Globally, MLCC supply is currently highly concentrated among Japanese and South Korean enterprises. 2024 data reveals that three overseas players—Murata, Samsung Electro-Mechanics and Taiyo Yuden—together capture over 60% of the market share, while combined market share of leading domestic manufacturers stands below 10%, leaving massive room for domestic substitution. As a foundational core component of the electronics industry, achieving independent and controllable technology and production capacity for MLCC is pivotal to reinforcing and completing China’s domestic electronic industrial chain.

Backed by China’s enormous local markets for smart terminals, AI servers and new energy vehicles, the country has become the core growth engine for global MLCC demand. According to Frost & Sullivan reports, China’s domestic MLCC market expanded from CNY 360.2 billion in 2020 to CNY 559.1 billion in 2024, and is expected to reach CNY 823.6 billion by 2029. The domestic localization rate is projected to climb from 16% in 2024 to 24%. The capital market also fully recognizes the industry’s value.

Since the start of this year, A-share MLCC-related listed stocks have posted an average gain of over 90%, with more than ten firms seeing their share prices double. Leading enterprises have drawn intensive surveys from hundreds of institutional investors. Upstream and downstream players across the industrial chain have ramped up investments. Multiple manufacturers have realized mass production and delivery of high-end MLCC products, production line operating rates remain high, and financing capital continues to flow into the sector, accelerating capacity rollout across the industry.

Steady Strategic Expansion Riding Industry Tailwinds: FOSAN Anchors High-End Intelligent Manufacturing

Aligning with the overall industry trend, FOSAN focuses on passive components and seizes opportunities amid the industrial upswing. The company maintains a steady annual capacity expansion rate of 15%–30%, striving to hit an annual output target of 35 billion pieces in 2026, with a planned capacity exceeding 100 billion pieces by 2030. On the product front, FOSAN prioritizes high-value-added categories including alloy resistors, anti-sulfuration resistors, automotive-grade resistors and high-power resistors. It continuously upgrades intelligent production lines and optimizes product performance, with its offerings fully compatible with mainstream scenarios such as AI servers, automotive electronics and consumer electronics. The industry boom has arrived, ushering in a golden era for China’s domestic electronic components sector.

Moving forward, FOSAN will persist in deepening R&D and steadily expanding production capacity. By delivering reliable products and efficient services alongside partners, the company will capitalize on domestic substitution opportunities to jointly elevate the development level of China’s electronics industry.