Tiny ceramic capacitors — the "rice grains" of electronics — are getting scarce and more expensive, which is good for makers like Murata and Yageo but bad for gadget and AI hardware costs.

• Global dealer stocks of MLCCs fell again in the month to early August, hitting a record low while unit prices climbed.
• Compared with a year ago, dealers hold about a fifth fewer parts, yet the value of what they hold is higher — prices are rising faster than stock is shrinking.
• All five big suppliers — Murata, Samsung Electro-Mechanics, Yageo, TDK and Taiyo Yuden — raised prices, and Murata and Taiyo Yuden are taking in far more orders than they can ship.
• AI servers are driving the squeeze first, and UBS expects the tightness to spread from AI parts to the wider market.
• One caution: some of the buying may be customers stocking up early, which could overstate real demand.

Outlook: Factories are running near full tilt and order books stay full, so MLCC prices look set to keep climbing into the autumn.