{"slug": "chinese-mlcc-firms-profits-and-stock-prices-fatten-on-hunger-for-electronic-rice", "title": "Chinese MLCC firms’ profits and stock prices fatten on hunger for electronic ‘rice’", "summary": "Shares of Chinese MLCC manufacturers Guangdong Fenghua Advanced Technology, Suzhou GYZ Electronic Technology, and Chaozhou Three-Circle surged on Wednesday, with Guangdong Fenghua hitting the 10% daily limit for the second time this week and posting a year-to-date gain of over 180%, driven by insatiable global demand for AI infrastructure. The rally follows a TrendForce report showing monthly shipments from top suppliers Murata Manufacturing, Samsung Electro-Mechanics, and Taiyo Yuden hit a five-year high in June, as high-capacitance MLCCs face supply constraints from AI data center buildouts.", "body_md": "# Chinese MLCC firms’ profits and stock prices fatten on hunger for electronic ‘rice’\n\nShares in Guangdong Fenghua, Suzhou GYZ, Chaozhou Three-Circle and upstream suppliers shoot up as relentless AI demand reshapes market\n\n[Iris Deng](/author/iris-deng)in Shenzhen\n\nChinese manufacturers of multilayer ceramic capacitors (MLCCs) – tiny components required in great numbers to regulate electrical flow in electronic devices – are riding a stock rally on the back of explosive first-half earnings, fuelled by insatiable global demand for artificial intelligence infrastructure.\n\nShares of Shenzhen-listed Guangdong Fenghua Advanced Technology, one of the country’s leading producers of consumer-grade MLCCs, surged by the exchange-imposed 10 per cent daily limit on Wednesday morning. It marked the second time the stock hit the ceiling this week, capping a rally of more than 180 per cent so far this year.\n\nMeanwhile, Suzhou GYZ Electronic Technology jumped 20 per cent to hit the daily limit on Shanghai’s Nasdaq-style Star Market, and Chaozhou Three-Circle, a major domestic manufacturer of high-capacitance MLCCs, saw its Shenzhen-traded shares climb around 8 per cent, putting its year-to-date gain above 130 per cent. Its Hong Kong shares also rose 5 per cent on Wednesday.\n\nUpstream suppliers also benefited from the momentum, with Jiangsu Boqian New Materials gaining nearly 6 per cent and Shandong Sinocera Functional Materials rising almost 3.5 per cent on Wednesday.\n\nOften described as the “rice of the electronics industry” because of their tiny size and ubiquity, MLCCs are essential components in products ranging from smartphones and electric vehicles to AI servers.\n\nThe sector’s rally comes as the rapid buildout of power-hungry AI data centres and computing clusters continues to drive high demand for high-capacitance MLCCs, creating supply constraints across the supply chain.\n\nMonthly shipments from the world’s top three suppliers, namely Japan’s Murata Manufacturing, South Korea’s Samsung Electro-Mechanics (SEMCO) and Japan’s Taiyo Yuden, hit a five-year high in June, according to a report by market research firm TrendForce on Tuesday.", "url": "https://wpnews.pro/news/chinese-mlcc-firms-profits-and-stock-prices-fatten-on-hunger-for-electronic-rice", "canonical_source": "https://www.scmp.com/tech/tech-trends/article/3362265/chinese-mlcc-firms-profits-and-stock-prices-fatten-hunger-electronic-rice?utm_source=rss_feed", "published_at": "2026-07-29 10:30:12+00:00", "updated_at": "2026-07-29 10:33:28.565873+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-chips"], "entities": ["Guangdong Fenghua Advanced Technology", "Suzhou GYZ Electronic Technology", "Chaozhou Three-Circle", "Jiangsu Boqian New Materials", "Shandong Sinocera Functional Materials", "Murata Manufacturing", "Samsung Electro-Mechanics", "Taiyo Yuden"], "alternates": {"html": "https://wpnews.pro/news/chinese-mlcc-firms-profits-and-stock-prices-fatten-on-hunger-for-electronic-rice", "markdown": "https://wpnews.pro/news/chinese-mlcc-firms-profits-and-stock-prices-fatten-on-hunger-for-electronic-rice.md", "text": "https://wpnews.pro/news/chinese-mlcc-firms-profits-and-stock-prices-fatten-on-hunger-for-electronic-rice.txt", "jsonld": "https://wpnews.pro/news/chinese-mlcc-firms-profits-and-stock-prices-fatten-on-hunger-for-electronic-rice.jsonld"}}