Japanese component makers Murata Manufacturing and Ibiden posted record quarterly profits, driven by surging demand from the AI semiconductor market. Murata, the world's top multilayer ceramic capacitor (MLCC) maker, announced on the 31st of last month that its revenue for the first quarter (April-June) of fiscal year 2026 reached ¥502.3 billion (approximately $3.2 billion), with an operating profit of ¥98.5 billion (approximately $622.1 million), increases of 20.7% and 59.8% year-on-year. Ibiden, a dominant supplier of high-performance semiconductor substrates, reported results on the 4th with quarterly revenue rising 26% year-on-year to ¥123.2 billion (approximately $778.1 million) and operating profit jumping 52% to ¥26.9 billion (approximately $169.9 million), causing its stock to hit the daily upper limit on the Tokyo Stock Exchange. Ibiden supplies substrates for Nvidia's high-performance AI semiconductors, and its products are emerging as a supply chain bottleneck due to high technical barriers. Both companies cited increased AI-driven demand and a weaker yen as primary drivers and raised their outlooks for the second half of the year. However, Murata President Norio Nakajima cautioned that hyperscaler investments may face revisions or delays, while Ibiden's management dismissed concerns of an AI peak.