Shares of top Chinese multilayer ceramic capacitor (MLCC) manufacturers Chaozhou Three-Circle and Guangdong Fenghua advanced on strong H1 earnings powered by surging demand linked to artificial intelligence expansion.
- CCTC’s H1 revenue surged 55%, net profit up 56%
- Guangdong Fenghua’s net profit rose 74%, sales up 26%
- Shift toward high-end MLCCs for AI and automotive sectors
What happened
Chinese MLCC makers Chaozhou Three-Circle Company (CCTC) and Guangdong Fenghua Advanced Technology posted strong first-half 2026 financial results, leading to share price gains on August 28. CCTC’s revenue climbed 55% to 6.4 billion yuan with a 56% increase in net profits, while Guangdong Fenghua’s net income rose 74% year-on-year alongside a 26% sales increase.
Both companies attributed the results to improved market sentiment, MLCC price recoveries, and intensifying demand stemming from artificial intelligence applications. Their shares rose notably in Shenzhen and Hong Kong trading sessions, reflecting the investor optimism around the AI-driven semiconductor component market.
Why it matters
MLCCs are essential components widely used across electronics, often called the 'rice of the electronics industry.' The AI-driven surge in data center buildouts requires capacitors that can support high computing power, which has led MLCC manufacturers to bolster production and innovate in advanced, high-capacitance products.
Japanese and South Korean manufacturers currently dominate the high-end MLCC segment, but Chinese firms are stepping up efforts to capture this growth area. The industry is signaling an official upcycle, driven by rising prices and shifting priorities toward AI-computing and automotive electronics applications, which could reshape the global supply landscape.
What to watch next
Chinese MLCC producers plan to increase focus on the high-end market segment, targeting server-grade and automotive electronics capacitors. CCTC has outlined ambitions to mass-produce ultra-high-capacitance, large-format MLCCs in the second half of 2026, while Guangdong Fenghua is advancing scale-up efforts for specialized products tied to AI computing.
Globally, ongoing capacity constraints at major players Murata Manufacturing and Samsung Electro-Mechanics, along with their recent price hikes, will influence MLCC market dynamics. Observers should monitor how Chinese companies expand their footprint in this competitive space and whether they can reduce reliance on established foreign suppliers amid soaring AI-driven demand.