The increased use of Multilayer Ceramic Capacitors in both chip and encapsulated formats is mainly due to their excellence at decoupling Integrated Circuit Random Access Memories.As a result of this excellent performance, large volumes of this type of capacitor are currently used and indications are that further increases in volume will continue over the next decade. There is therefore a market requirement for continued improvements in performance, reliability and cost.There have been major processing changes for cost reduction reasons, which have resulted in new dielectric systems, changes in electrode types and greatly reduced dielectric thicknesses.Studies of the failure mechanisms in these capacitors have been made, and this paper outlines the effect of process and materials on the reliability of these capacitors.In addition, critical process stages are highlighted and control levels indicated. Some new work on testing techniques and its relevance to delaminations is also reported.