Sakai Chemical ramps up AI capacitor material production amid booming demand

Sakai Chemical Industry, historically a supplier of high-purity zinc oxide for geisha makeup, has become a key provider of barium titanate powder used in multilayer ceramic capacitors that power AI servers. After years of modest side-business sales, the AI infrastructure boom caused orders to double late last year, pushing the Osaka-based company to consider a double-digit expansion of its manufacturing capacity. President Toshiyuki Yagura indicated that major MLCC customers, including Murata Manufacturing and Taiyo Yuden, are continuously raising their forecasts, and a capital-expenditure decision is slated for March.

Despite the surge, Sakai plans to keep prices at cost-plus levels, citing concerns about corporate valuation. The electronics materials division now generates the most profit, overtaking the traditional plastic additives business, and the stock has risen about 15 % in 2026. Yagura expects the AI-driven demand to continue through at least 2027, while noting Japan’s advantage in consistent quality over emerging Chinese competitors.