Japanese electronics manufacturers TDK and Taiyo Yuden have agreed to collaborate on developing advanced electronic components for artificial intelligence applications. The partnership aims to enhance their ability to meet growing global demand for high-performance capacitors and inductors essential for AI servers and systems.
The alliance between TDK and Taiyo Yuden aims to bolster their competitive position in the critical AI hardware supply chain, potentially stabilizing the supply of essential components like MLCCs and inductors for AI infrastructure.
TDK and Taiyo Yuden, two major Japanese suppliers of advanced passive electronic components, have agreed to collaborate on the development of next-generation components for artificial intelligence applications. The companies signed a memorandum of understanding to begin discussions on a potential business alliance, which could extend to manufacturing and procurement cooperation.
The initiative is driven by the rapidly increasing component-performance requirements of AI data centers, servers, and physical AI systems. These applications demand compact, high-capacitance, and highly reliable components for functions such as power-rail stabilization, energy storage, and noise suppression. Both suppliers view advanced MLCCs and inductors as critical to the AI hardware supply chain, impacting system-level power integrity, thermal performance, and electromagnetic compatibility.
Taiyo Yuden has already seen a surge in demand for its MLCCs and inductors used in AI servers, reporting a book-to-bill ratio of 1.72, indicating that incoming orders significantly exceed current shipments. This demand is partly fueled by next-generation power architectures requiring numerous capacitors per server. To manage this intense demand and production pressure, Taiyo Yuden has accelerated capacity expansion and implemented price increases.
The companies also plan to consider jointly preparing an ensuring-supply plan and seeking approval from Japan’s Ministry of Economy, Trade and Industry, as advanced electronic components have been designated as Specified Critical Products under Japan’s Economic Security Promotion Act.
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