April 17, 2026 /SemiMedia/ — Yageo said on April 15 that demand tied to artificial intelligence applications continues to support its outlook for the second quarter, with order momentum remaining steady and its book-to-bill ratio holding at a healthy level.

The company said demand trends remain uneven across end markets, with AI-related applications standing out as the main growth driver. These include AI servers, data centres and high-performance computing, where demand for advanced passive components continues to rise. AI-related revenue accounted for around 13% to 15% in the first quarter and is expected to increase further this year as adoption expands.

Within its product mix, tantalum capacitors showed particularly strong momentum. Polymer-based products, in particular, have gained traction due to their stability and high capacitance density, making them widely used in AI system designs. The segment continues to show stronger-than-average order visibility, with demand extending into the second half of the year.

Yageo noted that the tantalum capacitor market remains highly consolidated, as production requires integrated capabilities from raw material sourcing to chemical processing and manufacturing, limiting the entry of new competitors.

In the MLCC segment, the company said market conditions are gradually normalising. Channel inventories have declined compared with a year earlier, while restocking demand has started to recover. It also said it has not seen abnormal ordering behaviour such as double ordering or panic buying, which often appears in cyclical upturns.

On pricing, Yageo said higher costs for materials such as tantalum and silver, as well as logistics and energy expenses, have led to price adjustments since the fourth quarter of last year. These adjustments cover selected high-end AI server components, distribution products and SSD-related applications. Some of the impact has yet to flow through to revenue, but will gradually appear as new contracts take effect.

The company added that it has also adjusted pricing for certain product lines where cost structures were out of balance, mainly in consumer electronics and parts of the automotive segment. It expects pricing pressure to persist in the near term amid ongoing supply chain uncertainty.