Goldman Sachs: Yageo $2327.TW and MLCC

> Major Japanese and Korean suppliers are shifting their manufacturing capacity away from commodity MLCCs to high-margin AI grade MLCCs. Goldman Sachs expects 14% of global MLCC capacity to support AI in 2026, rising to 32% by 2028 (up from just 9% in 2025).

> Commodity MLCC Supply Tightening: Because competitors are focusing on AI, the supply for traditional/commodity MLCCs is tightening dramatically. Global non-AI MLCC industry utilization rates are projected to hit 97% in 2027 and 100% in 2028.

> Massive AI TAM Growth: The global AI MLCC Total Addressable Market (TAM) is expected to grow at a 93% CAGR from 2025 to 2028. This is driven by massive MLCC content per server (e.g., 300k to 500k+ chips for next-gen AI server racks compared to just 12k for a general server).

> Yageo controls ~25% of the global commodity MLCC capacity share (making them the single largest holder).

> Revenue Mix: While peers chase high-end AI contracts, commodity MLCCs will account for 72% to 90% of Yageo's MLCC revenue between 2026 and 2028.

> Aggressive Pricing Power: Yageo's commodity MLCC pricing is expected to skyrocket by 93% YoY in 2027 and 84% YoY in 2028. Low-end product pricing hikes are expected to surpass high-end adjustments due to tighter market conditions and lower initial margins.