Taiyo Yuden faces 'scary' demand for AI server components, risks supply chain strain

Taiyo Yuden CEO Katsuya Sase said the company is fielding 'scary' levels of demand for high-end artificial intelligence server components, stretching capacity and increasing the risk of supply chain disruptions.

Multilayer ceramic capacitors (MLCCs)—tiny components that regulate and stabilize power flow in electronic devices—are becoming a growing bottleneck in AI data center construction. Taiyo Yuden and Murata Manufacturing comprise the bulk of the world's supplies of high-end MLCCs.

The Tokyo-based company will likely need to accelerate spending to expand output capacity in response to the intense demand pressure.