JEITA forecasts capacitor demand will quadruple by 2029 as AI data centers expand, creating supply chain challenges and innovation opportunities in server components.
The Japan Electronics and Information Technology Industries Association (JEITA) predicts capacitor demand will increase fourfold by 2029 due to rapid AI data center expansion. This surge highlights critical supply chain challenges and opportunities for innovation in server component manufacturing.
The capacitor crunch: Why AI servers need more power storage
According to JEITA’s latest industry report released this week, global demand for multilayer ceramic capacitors (MLCCs) is projected to reach 4 trillion units annually by 2029, up from approximately 1 trillion in 2023. This dramatic increase is directly tied to the explosive growth of AI data centers worldwide.
“Each new generation of AI server requires 20-30% more capacitors than traditional servers,” explains JEITA’s component research director in the report. “The power delivery networks in AI accelerators need extremely stable voltage, which means more high-quality capacitors per board.”
Supply chain pressures emerge
Major capacitor manufacturers including Murata, TDK, and Samsung Electro-Mechanics have all announced capacity expansion plans in recent months. Murata’s CFO stated in their Q2 earnings call that “the AI-driven demand is coming faster than our most optimistic projections.”
The supply challenge is compounded by the need for higher-performance components. AI servers require capacitors with better temperature stability and lower equivalent series resistance (ESR) – specifications that constrain production yields.
Innovation pathways
Industry analysts point to several potential solutions:
- New dielectric materials that offer higher capacitance in smaller packages
- Advanced manufacturing techniques to improve yields of high-spec components
- Alternative capacitor technologies like conductive polymer types
As data center operators plan their AI infrastructure expansions, capacitor availability may become a critical factor in project timelines. The component industry faces both unprecedented demand and an opportunity to drive the next wave of power delivery innovation.
