A group of mixed oxide ceramic capacitors used in several electronic systems recently failed as a result of voltage breakdown in the specified test ranges. These capacitors consist predominantly of mixed oxides of magnesium, titanium, silicon and aluminum (with minor amounts of strontium and calcium) and contain palladium mesh electrodes. Preliminary results suggest that phase transformations have occurred in some lots of capacitors that have been over-fired as a result of a manufacturing change. Several years’ production of capacitors has potentially been affected. The formation of a phase with inferior dielectric properties, and which can exhibit semiconducting properties (P/N junction), probably resulted in the failure of the capacitors. This new phase is typically rich in strontium and is only present at levels of several volume percent. The low concentration of this phase has made its identification difficult. If this new phase could be identified it might be possible to determine/establish if its dielectric properties are consistent with the proposed failure mechanism.