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How AI Computing Is Reshaping Guangdong’s MLCC Industry
AI servers are making high end MLCCs a tighter, more valuable component market: Goldman Sachs expects AI server MLCC demand to rise about 4.3 fold from 2025 to 2030, but the benefits are concentrated in high capacitan... Three circle reported first half revenue of RMB 6.423 billion and net profit of RMB 1.932 billio...
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- AI servers are making high end MLCCs a tighter, more valuable component market: Goldman Sachs expects AI server MLCC demand to rise about 4.3 fold from 2025 to 2030, but the benefits are concentrated in high capacitan...
- Three circle reported first half revenue of RMB 6.423 billion and net profit of RMB 1.932 billion, both up more than 50% year on year; Fenghua’s revenue rose 26.28% to RMB 3.5 billion while net profit rose 74.01% to R...
- Viiyong’s IPO filing places it first in China and second globally by 2024 ultra miniature MLCC sales volume, while its high capacitance industrial products target equipment including AI servers.
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openai.comCreate a landscape editorial hero image for this Studio Global article: How is the AI-computing boom driving demand, supply tightness, market growth, and stronger first-half earnings for Guangdong’s MLCC “three m. Article summary: AI data-center build-outs are turning MLCCs from a low-cost commodity into a capacity-constrained, high-value power-management component. That favors Guangdong’s “three musketeers”: vertically integrated scale at Chaozho. Topic tags: general, general web, user generated. Style: premium digital editorial illustration, source-backed research mood, clean composition, high detail, modern web publication hero. Use reference image context only for broad subject, composition, and topical grounding; do not copy the exact image. Avoid: logos, brand marks, copyrighted characters, real person likenesses, fake screenshots, UI text, readable text, watermarks, charts with fa
AI data-center construction is shifting attention to an often-overlooked component: the multilayer ceramic capacitor, or MLCC. These parts help manage power and stabilize voltage in electronic systems. As AI servers demand more high-capacitance, high-reliability components, Guangdong’s Three-circle Group, Fenghua Hi-Tech, and Viiyong Technology are positioned in different parts of the market—from vertically integrated electronic ceramics to automotive and industrial supply, and ultra-miniature MLCCs. 7
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Why AI servers matter for MLCCs
Goldman Sachs has described MLCCs as the third-largest bill-of-materials cost category in AI servers, after GPUs and memory. Its forecast calls for the AI-server MLCC market to expand from roughly JPY 215 billion in fiscal 2025 to JPY 920 billion in fiscal 2030—about 4.3 times larger, or a 34% compound annual growth rate. 53
That does not mean every MLCC is equally scarce or will command the same pricing. The pressure is most acute in high-end specifications used for AI infrastructure and other demanding applications. Industry reporting also points to long build-out times for high-end MLCC production lines—about 18 to 24 months—which can make supply slower to respond than demand. 8
The result is a change in mix as much as a change in volume: suppliers able to qualify high-capacitance, high-reliability products may capture more of the upside than producers focused on standard parts.
Three-circle: scale, vertical integration, and optical connectivity
Chaozhou-based Three-circle reported first-half revenue of RMB 6.423 billion, up 54.82% year on year, and net profit attributable to shareholders of RMB 1.932 billion, up 56.18%. The company attributed growth to stronger demand in electronic components and optical communications. Its MLCC business benefited from improving customer recognition, an improving industry environment, and higher sales volume and revenue in some specifications. 1
Three-circle’s differentiation is its vertically integrated electronic-ceramics model. Its business spans ceramic materials, MLCC electronic components, optical-communication ceramic devices, and equipment components; reporting on its Hong Kong listing describes a production chain covering ceramic powders, precision processing, and self-developed manufacturing equipment. 18
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AI infrastructure can also support its communications business. Higher-speed 800G and 1.6T optical modules use optical interconnection components, including ceramic ferrules and related parts. Three-circle’s portfolio includes ceramic ferrules and sleeves as well as MT ferrules designed for these higher-speed module applications. 18
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The group listed H shares in Hong Kong on July 9, 2026. It said the proceeds would support overseas construction and expansion, automation, technology iteration and materials innovation, along with working capital. 21
One historical detail deserves care: the available sources describe Three-circle as founded in 1970, not 1969. The supplied materials do not independently substantiate a 1969 founding date. 17
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Fenghua Hi-Tech: automotive and industrial demand add to the AI opportunity
Zhaoqing-based Fenghua Hi-Tech reported first-half revenue of RMB 3.5 billion, a 26.28% year-on-year increase, and net profit of RMB 290 million, up 74.01%. 1
Its reported growth was broader than AI alone. Automotive-electronics sales rose 30%, industrial-control sales rose 54%, and smart-terminal sales rose 14%; supercapacitor sales increased 85%. The company cited AI computing, energy storage, the low-altitude economy, and automotive electronics as expanding markets. 1
That diversification matters. Automotive electrification and industrial automation can sustain demand for qualified, reliable components even when consumer-electronics cycles are uneven. The available sources do not provide sufficiently strong evidence to verify claims about Fenghua’s early use of imported U.S. production lines, so that historical detail should not be treated as established here.
Viiyong: ultra-miniature MLCC leadership with high-capacitance server products
Viiyong Technology, based in Luoding, Yunfu, is pursuing the high-end end of the MLCC market rather than relying only on standard-volume products. Its Shenzhen IPO filing, citing Frost & Sullivan data, states that by 2024 sales volume it ranked No. 1 in China and No. 2 globally—behind Murata—in ultra-miniature MLCCs. 33
The filing also identifies AI servers as part of its industrial-equipment opportunity. It says Viiyong’s high-precision stacking and lamination technology supports high-capacitance industrial MLCCs; in 0805 and 1206 package sizes, it lists products reaching 100μF and 220μF, respectively. 33
By 2024 MLCC revenue, Viiyong ranked third among mainland Chinese manufacturers, according to reporting based on the company’s filing. 40 Its position illustrates why the AI boom is not only about scale: miniaturization, capacitance, manufacturing consistency, and qualification capability can all be decisive.
Why Guangdong’s cluster is relevant
Three-circle, Fenghua, and Viiyong are often described as Guangdong’s MLCC “three musketeers.” Reporting characterizes them as part of China’s largest and most complete electronic-components cluster. 7
The industrial logic is straightforward: electronic-component makers depend on networks of material suppliers, equipment producers, module makers, and end markets such as communications, automotive electronics, industrial control, and consumer devices. A dense regional supply base can support faster product development and qualification, although it does not eliminate the technical barriers in high-end MLCC manufacturing.
What the earnings gains do—and do not—prove
The first-half results at Three-circle and Fenghua are consistent with a stronger MLCC market and improving demand for higher-end applications. But it would be too simple to attribute every gain to AI. Three-circle also cited optical-communications demand, while Fenghua’s reported growth included automotive, industrial-control, smart-terminal, and new-product sales. 1
The more defensible conclusion is that AI is changing the market’s most valuable segment. It increases demand for high-capacitance and high-reliability MLCCs at a time when advanced capacity cannot be added instantly. Guangdong’s leading suppliers are benefiting because their capabilities map to that shift: Three-circle brings integrated ceramics and optical components, Fenghua brings broad industrial and automotive exposure, and Viiyong brings ultra-miniature and high-capacitance specialization. 1
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For buyers and investors, the key distinction is specification. A broad AI-driven MLCC story does not automatically translate into tight supply or pricing power across every product category; the strongest effects are likely to remain concentrated in qualified high-end parts.
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AI servers are making high end MLCCs a tighter, more valuable component market: Goldman Sachs expects AI server MLCC demand to rise about 4.3 fold from 2025 to 2030, but the benefits are concentrated in high capacitan...
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AI servers are making high end MLCCs a tighter, more valuable component market: Goldman Sachs expects AI server MLCC demand to rise about 4.3 fold from 2025 to 2030, but the benefits are concentrated in high capacitan... Three circle reported first half revenue of RMB 6.423 billion and net profit of RMB 1.932 billion, both up more than 50% year on year; Fenghua’s revenue rose 26.28% to RMB 3.5 billion while net profit rose 74.01% to R...
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Viiyong’s IPO filing places it first in China and second globally by 2024 ultra miniature MLCC sales volume, while its high capacitance industrial products target equipment including AI servers.