[AI Boom Sparks MLCC Buying Frenzy, Downstream Customers Rush to Sign Long-Term Contracts to Secure Capacity] BlockBeats News, August 10: Driven by strong AI demand, the passive components market is heating up, leading to a supply shortage of multilayer ceramic capacitors (MLCC). Some customers, in order to secure supply, are willing to pay two to three times the original price to chase orders from major passive component manufacturers like Yageo and Murata, creating a bidding war where the highest bidder wins. Lead times have now extended to 12 to 16 months. Yageo stated that MLCC demand is extremely robust, with production line utilization rates continuing to climb. This quarter, utilization for standard products will increase from around 80% to over 90%, while specialized products will remain at high levels, pushing overall operations toward full capacity. An increasing number of AI-related customers are seeking to lock in production capacity for six months to several years through long-term contracts to mitigate supply risks. The company is expanding production in locations such as Kaohsiung, Suzhou, Vietnam, and Mexico to meet demand. Industry insiders point out that large MLCC manufacturers prioritize major clients and long-term partners, leaving small and medium-sized customers with reduced supply and forcing them to pay higher prices to secure materials. Japanese giants like Murata and Taiyo Yuden have also raised their forecasts, citing stronger-than-expected demand for AI servers and data centers, which is driving increased usage of high-capacitance products.