Ceramic capacitors are a type of capacitor that utilizes ceramic materials in its construction, specifically in the dielectric. The term "ceramic" refers to the use of ceramics or ceramic compounds within the device. These components play a crucial role in various electronic circuits due to their high capacitance values and relatively low costs compared to other types of capacitors. They are commonly used for decoupling and filtering purposes, acting as a buffer between power sources and voltage-sensitive components such as microcontrollers and integrated circuits.