China: Chinese factories rush to fill orders for multi-layer ceramic capacitors.

Storyline Chinese factories rush to fill orders for multi-layer ceramic capacitors A global shortage of one of the most common parts of an electronic device - multi-layer ceramic capacitors -is pushing the Chinese factories that make them into overdrive. Known as the "rice of the electronics industry" because they’re essential in everything from EVs to smart phones, MLCCs are in high demand. Factories like this one have production scheduled into the second half of next year. While other factories say the supply crunch has stretched their delivery times by several weeks. Chen Xiaoting, Sales Supervisor, Shenzhen Henghuixin Technology Co., Ltd.: "Downstream sectors are facing shortages. Our order volume in the third quarter has doubled compared to the first quarter. Delivery times are extending; what used to take six to eight weeks may now take around 16 weeks." To address the supply-demand gap, many manufacturers have launched expansion plans that include building production lines for high-capacity MLCCs. Hou Yaojia, Chief Expert, Product Center, Guangdong VIIYONG Electronic Technology Co., Ltd.: "We began gradually ramping up capacity in the second half of this year. Once fully operational, our monthly standardized production capacity will rise to nearly 80 billion units. And we're focusing that expansion on high-end, high-capacitance automotive-grade MLCCs — especially products for today's AI servers." Analysts predict that the supply gap for MLCCs will persist from the fourth quarter of this year through the first half of 2027 and will likely stay unbalanced for whole year. [Restrictions: No access Chinese mainland]