In the vast, humming data centers that power our AI-driven world, a tiny, unassuming component is suddenly at the center of a global scramble: the multilayer ceramic capacitor, or MLCC. These minuscule devices, no larger than a grain of rice, serve as the silent conductors of electricity, ensuring that the massive processors driving artificial intelligence can function without interruption. Now, as demand for AI servers surges to unprecedented heights, the world is facing a critical shortage of these essential components—a shortage that is expected to peak in early 2027, creating both challenges and opportunities for manufacturers like Samsung Electro-Mechanics.
The shortage isn't happening by accident. It's the direct result of an explosion in demand for AI technology. Companies like Nvidia and AMD are racing to build more powerful AI processors, while server manufacturers are scrambling to keep up with the insatiable appetite for computing power. TrendForce, a leading market research firm, forecasts that global server CPU shipments will grow by more than 40 percent next year alone—a staggering acceleration that is stretching the global supply of MLCCs to its breaking point.
"The shortage of high-end multilayer ceramic capacitors would likely be most severe in the first two quarters of 2027," according to industry analysts, as manufacturers struggle to meet the simultaneous demands of multiple tech giants all competing for the same limited resources.
61 trillion won by 2028—a fifteenfold increase that reflects the company's dominant position in this critical market.
Samsung Electro-Mechanics CEO Dates MLCC Shortage Peak to First Half 2027
Amid this global scramble, one company is emerging as a clear winner: Samsung Electro-Mechanics. The South Korean electronics manufacturer has secured an 879.3 billion won (approximately $656 million) contract to supply MLCCs specifically for AI servers, expanding its portfolio of disclosed long-term supply contracts to an impressive 5.18 trillion won this year alone. This strategic positioning has allowed the company to report record-breaking financial results, including third-quarter revenue of 3.76 trillion won and operating profit of 691 billion won.
Samsung Electro-Mechanics' success isn't just a matter of good timing—it's the result of strategic foresight. The company has been investing heavily in its MLCC production capabilities, focusing specifically on the high-capacitance versions required for advanced AI servers. This specialization has paid off handsomely, with the company's MLCC revenue rising by 36% in the latest quarter alone.
The future looks even brighter. Projections by Meritz Securities suggest that Samsung's AI-related MLCC revenue will surge from 374.9 billion won in 2025 to an astonishing 5.61 trillion won by 2028—a fifteenfold increase that reflects the company's dominant position in this critical market.
A widening shortage of high-performance capacitors used in AI servers is expected to intensify in early 2027, as surging demand for processors and memory drives new supply contracts at Samsung Electro-Mechanics and a major capacity expansion by Japanese rival Murata Manufacturing. https://t.co/oBCuBjUK0H
Samsung isn't the only player recognizing the importance of this market. Japanese manufacturer Murata has announced a massive $6.3 billion investment (1 trillion yen) to double its MLCC production capacity between fiscal 2026 and 2030. This expansion is set to begin in April 2026, just as the shortage is expected to intensify, highlighting the global nature of the competition to secure dominance in the MLCC market.
While these companies celebrate their financial gains, the MLCC shortage has real-world implications for the broader tech industry. The constrained supply threatens to slow the rollout of new AI technologies, potentially delaying innovations in everything from autonomous vehicles to medical diagnostics. For companies like Nvidia and AMD, which are procuring high-capacitance MLCCs for their next-generation platforms like Vera Rubin and MI450, the shortage represents both a challenge and an opportunity to differentiate themselves through superior supply chain management.
The next AI bottleneck isn't a chip — it's a capacitor. TrendForce expects high-capacity MLCC shortages to peak in H1 2027 as Nvidia's Vera Rubin ramps and AMD buys specialized MLCCs for MI450. Samsung Electro-Mechanics already signed an ~$658.6M AI-server MLCC deal. When the smallest part sets the schedule, who really controls AI supply?
As we approach the critical period of 2027, the MLCC shortage will likely become one of the most significant factors shaping the AI industry's trajectory. For Samsung Electro-Mechanics, this represents the culmination of years of strategic investment and positioning. For the rest of the tech world, it's a reminder that even the most advanced technologies depend on the smallest, most fundamental components.
In the end, the story of the MLCC shortage is more than just a business tale—it's a reflection of our collective dependence on artificial intelligence and the complex, interconnected systems that make it possible. As we continue to push the boundaries of what's possible with AI, we must remember that progress depends not just on brilliant algorithms and powerful processors, but also on the humble capacitors that keep it all running.