1. Introduction to MLCC
Multilayer Ceramic Capacitor (MLCC) is an indispensable passive component in electronic circuits, and its core structure consists of alternately stacked ceramic dielectric layers and metal electrodes, which are sintered at high temperatures to form an integrated structure.MLCCs are widely used in consumer electronics (e.g. mobile phones, computers, communication equipment, automotive electronics, industrial control, and new energy sources), with features such as small size, wide range of capacity, high frequency characteristics, and high reliability.MLCCs are widely used in consumer electronics (e.g. cell phones, computers), communication equipment, automotive electronics, industrial control and new energy.
In recent years, with the rapid development of 5G communications, Internet of Things (IoT), smart cars and other technologies, MLCC demand has shown explosive growth.According to statistics, a smartphone needs to carry more than 1,000 MLCCs, and the MLCC dosage of a new energy vehicle can be up to 3-5 times that of a traditional fuel vehicle, fully reflecting its core position in modern electronic systems.
2. Selection considerations
The following key parameters need to be taken into account when selecting MLCCs:
- Capacitance Value and Voltage: Select the appropriate capacitance (pF) according to the circuit requirements.
μF）和额定电压（常见6.3VAvoid blindly choosing high voltage specifications resulting in higher costs. - Size and Packaging: Miniaturization is the trend (such as 0201, 01005 package), but need to pay attention to the difficulty of the welding process and mechanical strength.
- Temperature characteristics and materials: e.g. X7R (-55°C~125°C, tolerance ±15%) for general-purpose scenarios, and C0G (excellent temperature stability) for high-frequency, high-precision circuits.
- Supply chain reliability: Prefer Murata (Murata), Samsung Electro-Mechanics (SEMCO), National Giant (YAGEO) and other head manufacturers, or to verify the stability of domestic alternative brands.
In addition, we need to be vigilant about the risk of "false stock-outs", part of the special specifications of the product delivery period may be up to 6 months or more, we need to plan in advance the stocking strategy.
3. Price trends
MLCC prices are affected by supply and demand, raw material costs and geopolitical factors, showing cyclical fluctuations.
- 2018-2020: Due to Japan and South Korea manufacturers capacity adjustment and 5G demand surge, MLCC prices skyrocketed, some models rose more than 10 times.
- 2021-2023: With the expansion of production by Chinese manufacturers (e.g. Fenghua Hi-Tech, Sanhuan Group) and weak demand for consumer electronics, the price has gradually fallen back to a rational range.
- 2024-present: New energy vehicles, AI servers and renewable energy field demand surge, superimposed on palladium, nickel and other raw material prices, MLCC prices into a mild upward channel, is expected to rise in the next two years in the range of 5% to 10%.
Need to pay attention to the upstream ceramic powder (accounted for 30% ~ 40% of the cost) the risk of high supply concentration, Japanese manufacturers such as Sakai Chemical accounted for 70% of the global market share, which may trigger price fluctuations.
4. Industry size and competitive landscape
According to market research firm Paumanok, the global MLCC market reached $16 billion in 2023 and is expected to surpass $23 billion in 2028, at a compound annual growth rate (CAGR) of approximately 7.5%.Driving factors include:
- new energy vehicle: Electrification and Intelligence Drive Demand for Automotive MLCCs (CAGR 12%).
- high-end manufacturing: Industrial automation, 6G communications, and satellite internet are generating demand for high-reliability MLCCs.
- Domestic substitution: Chinese vendors accelerate breakthroughs in high-capacity, automotive-grade products to increase localization rate to 25% by 2023 (only 8% in 2018).
Competitive landscape, Japan and South Korea (Murata, Samsung Electro-Mechanics, TDK) still dominate the high-end market, but Chinese manufacturers through technological iteration (such as low-temperature co-fired ceramic technology) and capacity expansion to gradually narrow the gap.
5. Key details and future prospects
(1) Supply chain resilience challenges
The MLCC industry chain is highly globalized, but geopolitical conflicts (e.g. chip control) may trigger the risk of supply disruptions.Manufacturers need to establish a diversified procurement system, such as decentralized ceramic powder suppliers or layout of localized production.
(2) Direction of technology iteration
- high capacity: Enhancement of capacity per unit volume by ultra-thin lamination technology (dielectric layer thickness <1μm).
- high-frequency: Meet the demand for low ESR/ESL characteristics for 5G millimeter wave communications.
- intellectualize: MLCCs with integrated sensor functionality are in the experimental stage, allowing real-time monitoring of capacitor health.
(3) Environmental Protection and Sustainability
The European Union's "New Battery Law" and global lead-free requirements to promote MLCC material innovation, bioceramics and other environmentally friendly materials R & D investment continues to increase.
Remarks
MLCC industry is in the key stage of "demand upgrade" and "technology breakthrough".In the short term, new energy vehicles and AI arithmetic demand will support the industry's steady growth; in the long term, domestic substitution and technology iteration (such as ultra-high capacity, high temperature resistant products) will reshape the competitive landscape.For practitioners, it is necessary to closely track the dynamics of the supply chain, strengthen the technical reserves, in order to occupy the first opportunity in this high-barrier, high-growth track.