Nippon Chemical Industrial Co., Ltd. is expanding production capacity for barium titanate at its Fukushima No. 1 Factory in Koriyama, Fukushima Prefecture, as surging demand for high-performance multilayer ceramic capacitors (MLCCs) accelerates growth in AI data centers.

 

The expansion is aimed at strengthening the company’s supply capacity for barium titanate, a key dielectric material used in MLCCs, and meeting rising demand from AI servers, high-speed networking equipment and other advanced electronic devices.

 

The push comes as the rapid adoption of generative AI fuels a global build-out of AI data centers. Demand for high-performance MLCCs is rising alongside the expansion of AI infrastructure, with AI server applications expected to remain a major driver of market growth.

 

Nippon Chemical has spent years developing barium titanate materials and has built proprietary capabilities in fine-particle synthesis and particle-size control. The company has increasingly focused on products for high-performance MLCC applications, including those used in AI servers, and says adoption by customers in Japan and overseas has continued to expand.

 

The new investment is designed not only to meet immediate demand but also to strengthen long-term supply stability. Nippon Chemical said it is advancing measures to expand production capacity, upgrade manufacturing infrastructure and reinforce the resilience of its overall supply chain in anticipation of continued market growth and rising customer demand.

 

The company said the capacity expansion will enhance its ability to meet demand related to AI servers while positioning its barium titanate business to support the next phase of growth in high-performance MLCCs.