On August 10, driven by strong AI demand, the passive component market rebounded, and multilayer ceramic capacitors (MLCCs) faced supply tightness. Some customers, in order to secure supply, did not hesitate to pay two to three times the original price to chase orders from passive component manufacturers such as Yageo and Murata, creating a scramble for materials where the highest bidder wins, with lead times extended to 12-16 months. Yageo said that MLCC demand is very strong, and production line utilization continues to climb. This quarter, standard products will rise from about 80% to over 90%, while specialty products remain at high levels, moving overall toward full capacity. More and more AI-related customers hope to lock in capacity for half a year or even several years in advance through long-term contracts to reduce supply risks. The company is responding by expanding production in Kaohsiung, Suzhou, Vietnam, and Mexico. Industry observers noted that large MLCC manufacturers give priority to major customers and long-term partners, while small and medium-sized customers face compressed supply and have to pay higher prices to grab goods. Japanese giants Murata and Taiyo Yuden have also raised their outlooks, stating that AI servers and data center demand has exceeded expectations, driving up usage of high-capacitance products.