Why is AI infrastructure driving demand for these components?

AI servers consume significantly more power than conventional ones, requiring more components to manage and stabilize this power, thus increasing demand for parts like MLCCs.

What is the current market situation for AI components in Asia?

Demand is high, leading to tight supply, increased prices, and production lines for components like MLCCs and substrates running at over 90% capacity.

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AI Rally Powers Asian Component Makers Higher

Q: What components are benefiting from the AI rally in Asia?

Multi-layer ceramic capacitors (MLCCs), advanced chip substrates, and thermal compression bonding (TCB) processes are key components experiencing growth due to the AI rally.

29 Apr

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Summary

AI infrastructure growth boosts demand for supporting components.
MLCCs, substrates, and TCB are key growth areas in AI supply chain.
Component prices are increasing due to high demand and tight supply.

AI Rally Powers Asian Component Makers Higher

The artificial intelligence rally, initially concentrated on chipmakers, is now significantly impacting the wider Asian supply chain. Investors are increasingly focusing on less prominent but crucial components that enable powerful processors. These include multi-layer ceramic capacitors (MLCCs), advanced chip substrates, and thermal compression bonding (TCB) processes.

Companies specializing in these areas, primarily located in South Korea, Taiwan, Japan, and China, have seen substantial stock gains. This trend is fueled by the immense power demands of AI servers, which necessitate a higher quantity of stabilizing components compared to conventional systems. An AI server can require 10 to 15 times more MLCCs than a standard server.