Two significant entities in China’s multilayer ceramic capacitor (MLCC) market are vying for listings in Hong Kong, anticipating that the growing global demand for these small electronic components, essential for artificial intelligence infrastructure, will sustain their expansion.
Chaozhou Three-Circle, recognized as one of the leading MLCC producers in China and already publicly traded in Shenzhen, successfully navigated its listing hearing with Hong Kong Exchanges and Clearing (HKEX) last week. This advancement comes as it prepares for an initial public offering backed by China Galaxy International.
Following closely is Jiangsu Boqian New Materials, a company listed in Shanghai that supplies key metal powders for MLCC manufacturing. Last week, it submitted its prospectus to HKEX, referencing Frost & Sullivan statistics indicating it will rank as the world's second-largest provider of nickel powders for MLCCs in 2025, claiming an 11 percent share of the global market.
MLCCs are often referred to as the “rice of the electronics industry” due to their small size and wide-ranging applications, which include smartphones, electric vehicles, and AI servers, as well as data centers. Nickel powder plays a vital role as a raw material in producing the electrodes within these capacitors.
These forthcoming listings arise during what Goldman Sachs describes as the “largest and longest” growth phase in the history of the MLCC industry.
The escalating demand for high-capacitance MLCCs, driven by the rapid expansion of power-intensive AI data centers and computing clusters, has led to significant supply challenges within the sector.
