I’m looking to start a discussion on how to play the current AI hardware boom through the passive components space, specifically looking at a potential indirect play here in India via Shivalik Bimetal Controls.
For quick context, MLCCs (Multi-Layer Ceramic Capacitors) are the unsung heroes of electronic circuits. They regulate stable voltage and suppress electrical noise. The massive explosion in AI servers (like those running NVIDIA architectures) has created a severe global MLCC shortage. A standard server might use a few hundred MLCCs, but an AI server requires thousands of ultra-high-capacitance, high-voltage MLCCs. Because these advanced chips operate under extreme power loads, global manufacturing capacity for these specific high-end components is stretched to the absolute limit.
For quick comparision between MLCCs and Silicon Capacitors do check out the image from TrendForce
Looking at the global heavyweights, we are seeing massive moves:
- Murata Manufacturing & Samsung Electro-Mechanics (the absolute titans of MLCCs) are aggressively shifting their product mixes away from standard consumer tech to high-margin AI and automotive lines to capture this structural shift.
- Vishay Intertechnology (VSH) is also capitalizing heavily on this passive component supercycle, launching a massive multi-year capital expenditure program to scale up its power-tree portfolio and meet soaring AI component demand.
This brings me to my thesis and main question for the forum.
Shivalik Bimetal Controls itself doesn’t make MLCCs. They specialize in high-precision shunt resistors and bimetals. However, Vishay is one of Shivalik’s major global Tier-1 OEM customers. Given that AI hardware manufacturers are trying to secure entire component “packages” to avoid production bottlenecks, Vishay’s order books are expanding rapidly.
My questions for the forum:
1. Do you think Shivalik will see a significant, multi-year revenue tailwind as a direct proxy for Vishay’s booming AI demand?
2. Are Vishay’s localized expansion plans already translating into visible order backlog increases for Shivalik, or is this relationship too diluted to move the needle significantly?
Would love to hear your insights, data points, or alternative proxy ideas.
