Every leap in optical interconnects is accompanied by the upgrading of high-speed optical modules—from 400G to 800G and then to 1.6T. In this link, passive components such as MLCCs (Multi-Layer Ceramic Capacitors) may seem tiny, but they are a critical link in determining signal integrity and system reliability.
On September 10, at the "Source of Intelligent Computing: 2026 Core Computing Power Innovation Summit and the 8th Hardcore Core Award Ceremony" co-hosted by Xinshiye and IICIE (International IC and Innovation Exhibition), Tan Bin, Chief Technical Expert at Guangdong Viiyong Electronic Technology Co., Ltd. (hereinafter referred to as "Viiyong"), delivered a keynote speech titled "From 400G to 1.6T: The Evolution of High-Speed Optical Modules and MLCC Application Opportunities in the AI Computing Power Wave." Starting from the application map of MLCCs in optical modules, the speech extended to core manufacturing technologies and market supply-demand shifts, fully unfolding the industrial logic behind a "tiny grain of rice."
"Although we do not make optical modules, we make the tiny ceramic capacitors used in them—in many aspects, they actually play a very big role." Tan Bin clarified his perspective at the beginning: not making optical modules, but making the "most familiar yet unfamiliar component" inside them.
Small Volume, Critical Position: Three Major Applications of MLCCs in Optical Modules
Tan Bin introduced that compared to electronic devices such as PCs and mobile phones, the quantity and types of MLCCs in optical modules are not very large, but their application positions are quite critical, mainly concentrated in three areas: power lines on the PCB (Printed Circuit Board), signal lines on the PCB, and power lines inside the TOSA/ROSA (Transmitter Optical Sub-Assembly/Receiver Optical Sub-Assembly).
In terms of specific specifications, the commonly used rated voltages for optical module MLCCs are 4V/6.3V/10V, the commonly used capacitance values cover 100nF/1μF/10μF/22μF/47μF, and the commonly used sizes range from 01005, 0201, 0402 to 0603.
Tan Bin summarized the BOM (Bill of Materials) data of multiple classic 800G and 1.6T solutions: the most heavily used component is the most basic 0.1μF part, mainly in small sizes of 01005/0201; high-capacity MLCCs such as 10μF, 22μF, and 47μF are mainly used for power line filtering. Overall, the solutions from various manufacturers are "largely similar" in terms of quantity and specifications.
Tight Space, High Power Consumption, High Temperature, High Speed: Four Major Tests for High-Speed Optical Modules
The physical characteristics of optical modules determine the four stringent requirements for MLCCs. Tan Bin broke them down one by one: Tight space—optical module PCBs are small in size with compact component layout; besides 0603/0402, micro MLCCs of 0201, 01005, and even 008004 are increasingly applied; High power consumption—the power consumption density of circuits such as DSP, Driver, TIA, and PMIC (Power Management IC) is increasing, requiring MLCCs with lower ESR and higher ripple current capability to stabilize the power supply voltage; High temperature—AI data centers operate under high loads 24/7, and the small ambient temperature inside optical modules remains high, so the operating temperature range of MLCCs is evolving from X5R to X6S and even X7; High speed—to avoid signal distortion and reduce the bit error rate, ultra-wideband and low insertion loss capacitors are required.
Tan Bin revealed that, regarding the ripple current and self-temperature rise capability of high-capacity MLCCs, Viiyong developed a dedicated ripple current temperature rise testing equipment as early as a few years ago, completing systematic testing and verification for some high-end MLCCs.
Three Core Technologies: Components Much Smaller Than a Grain of Rice, Processes Much More Complex Than Imagined
MLCCs are sometimes much smaller than a grain of rice, but their manufacturing process involves up to 16 procedures. Tan Bin highlighted Viiyong's three core technologies—
The first is ultra-thin ceramic dielectric layer manufacturing technology. Viiyong can currently produce tape-cast dielectric layers down to 0.8 to 1 micrometer. High-end products such as 0805-100μF are realized based on this 0.8μm thin-film technology, which places extremely high requirements on powder dispersion, tape casting uniformity, and particle consistency after sintering.
The second is internal electrode printing, peeling, and ultra-high-layer high-precision stacking technology. The capacitance is directly related to the number of stacked layers, and the stacking accuracy error cannot exceed 0.05 micrometers. Taking Viiyong's 1210-220μF product as an example, 1,200 layers need to be stacked in a volume of approximately 3.0mm × 2.5mm with a thickness of 2.5mm. Once the cumulative error exceeds 1 micrometer, it will cause the product to deviate from the design.
The third is the "art-like" high-temperature sintering process. "For ceramic capacitors, sintering is like an art," Tan Bin described. MLCC manufacturing is not simply firing ceramics, but the high-temperature co-firing of ceramic powder and nickel metal internal electrodes. It requires precise control of the temperature curves in 25 temperature zones, the N2/H2 reducing atmosphere, and the oxygen partial pressure, to balance the thermal shrinkage, thermal expansion, and volatilization characteristics of the two materials, ultimately forming a uniform barium titanate crystal structure.
Capacity and Confidence: Advancing Towards the Global MLCC First Tier
According to Tan Bin, Viiyong focuses on MLCCs, comprehensively supplying high-end series such as high capacity, automotive grade, high frequency, ultra-miniature, and high voltage. High-end products of 100μF-220μF have deeply penetrated the market, focusing on AI servers and automotive fields. The company builds its workshops according to semiconductor standards, with key processes reaching Class 1,000 cleanliness and equipment interiors reaching Class 100 cleanliness, equipped with globally advanced equipment such as tape casters, stackers, and roller hearth furnaces, as well as SAP, MES, and SPC information systems.
In terms of capacity layout, Viiyong was founded in 2018, completed its six-year plan in 2023 with an annual capacity of over 500 billion pieces, and currently has a monthly capacity of 60 billion pieces; the second-phase smart factory was topped out in 2025 and is planned to be put into production in May 2026. The company's current annual capacity has reached 700 billion pieces, and it is steadily advancing the "New Six-Year Plan," with an expected capacity target of over 1,200 billion pieces by 2030, stepping into the first tier of global MLCC manufacturers.
Why Are Capacitor Prices Rising So Sharply? Three Reasons Behind the Shortage
Addressing the most concerning issue in the industry—"Why are capacitor prices rising so sharply and why is there such a severe shortage?"—Tan Bin provided three reasons.
First, comprehensive price increases in raw and auxiliary materials. Since 2026, the price of ceramic powder has risen by about 10%, rare earth prices have surged by as much as 200%, and copper and nickel have increased by about 40% and 20%, respectively. In terms of auxiliary materials, the supply risks of PET and PVB (petroleum products) used as tape casting carriers have intensified under the influence of geopolitics, leading to continuous price increases.
Second, the rapid iteration of AI servers has made MLCCs the third largest material in BOM increments. Tan Bin gave an example: the increase in GPU power density drives the miniaturization of MLCCs and higher usage. For a 100μF ceramic capacitor, it uses an 0805 package in the GB300 NVL72, but changes to an 0603 package in the VR200 NVL72—under the same capacitance, the unit price of a single MLCC doubles; while the number of MLCCs increases by 36%, the total cost increases by 182%.
Third, the business logic of capacity restructuring. Tan Bin calculated: under the same capacity, producing general-purpose 0402-10μF can yield 100 million pieces worth about CNY 1 million; whereas shifting to the production of the scarce 0603-100μF for AI servers, producing 9 million pieces can create a value of about CNY 20 million—a 20-fold surge in commercial value. This drives leading manufacturers such as Murata and Samsung to shift their main capacity to key specifications for AI servers, transferring low-to-medium specifications capacity to domestic and Taiwanese manufacturers, ultimately resulting in insufficient capacity for general-purpose medium-to-high capacity MLCCs, prolonged lead times, and price increases.
Outlook: Computing Power to Grow 100,000 Times, High-Capacity MLCC Demand to Grow 100 Times
At the end of the speech, Tan Bin shared a set of institutional forecasts: by 2035, the computing power of the whole society will grow by 100,000 times. "This number may look a bit exaggerated, but thinking about it the other way around, we are just at the very beginning of the AI computing power era, and many applications have not yet been involved, so growing by 100,000 times, I think it is really possible."
Based on this calculation, for every 10 TF increase in computing power, one 100μF capacitor needs to be added—by 2035, the demand for high-capacity MLCCs may grow by 100 times, and the tight supply of capacitors will continue. Tan Bin also frankly admitted that by then, tantalum capacitors, aluminum capacitors, silicon capacitors, etc., may also divert some of the demand. "For the entire capacitor market, not to mention 100 times, a growth of 10 or 20 times is very likely, because the AI computing power market is just too huge."
This article is edited based on the speech content without changing the original meaning and does not constitute any investment advice. If you have any questions, please contact us. WeChat: xsychief.