November 25, 2025 /SemiMedia/ — KEMET, a Yageo subsidiary recognized for its high-reliability passive components, has recently informed customers of a price increase covering its T520, T521 and T530 tantalum capacitor series. The adjustment, which can reach up to 30%, extends beyond distributors to include direct accounts, reflecting stronger demand from AI-related hardware and tighter supply conditions.

AI server demand intensifies pressure on tantalum capacitor supply

Accelerating AI server deployments continue to strain the market for high-grade capacitors needed in data-center power delivery. Tantalum capacitors, valued for their stability under high temperature and electrical stress, remain in short supply as industry capacity additions lag rising demand.

Passive-component pricing remains firm amid rising material costs

The broader passive-component market has also been firming since late 2023. Stabilizing PC shipments and persistent raw-material cost pressures—including elevated silver prices for inductor production—have contributed to continued upward pricing momentum across MLCCs and other components.

Yageo’s integration of KEMET has strengthened its position in the global tantalum capacitor sector, where the combined portfolio holds a leading share. Tantalum products represented more than one-fifth of Yageo’s revenue in the first half of the year, and demand from AI and other high-end applications remains strong.

Industry analysts note that further price adjustments across passive components are possible if AI-server demand stays on its current trajectory. Long production cycles and higher material costs are expected to keep supply tight through 2026.