Holy Stone: Strong AI Demand Drives Capacity Expansion; High-end Shortages Expected

According to CNA, Holy Stone Chairman Tang Chin-jung noted that NVIDIA's AI platform has driven strong demand for passive components, including multi-layer ceramic capacitors (MLCCs). Holy Stone will continue to expand capacity this year and through 2027. Tang predicts that if the strong AI demand persists, the shortage of passive components will become more pronounced by 2027. The company is increasing the proportion of high-end components for AI applications. Holy Stone expects to increase capacity by 20-30% this year and another 30-40% by 2027, as equipment lead times have stretched to 1-1.5 years. Key clients include US-based Cloud Service Providers (CSPs) and major laptop brands. Beyond AI data centers, Tang sees significant opportunities in the next 3-5 years in areas like Backup Battery Units (BBU), humanoid robots, and flying cars.