Samsung Electro-Mechanics Signs 450 Billion Won AI Server MLCC Supply Contract With Global Big Tech

One-Year Supply Contract for 2027

Over 40% Market Share in AI Server MLCCs

Samsung Electro-Mechanics announced on the 30th that it has signed a supply contract worth approximately 450 billion won with a global big tech (major information technology) company for multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers. The contract period is one year, from January 1, 2027, to December 31, 2027.

MLCCs are core components that store electricity and then supply it stably to semiconductors, helping them operate smoothly. They also eliminate signal interference (noise) within electronic devices, thereby improving the performance and stability of these devices. Sudden power fluctuations inside servers can directly lead to performance degradation, making the role of MLCCs, which manage stable power control in AI server environments, increasingly important.

Samsung Electro-Mechanics' multilayer ceramic capacitor (MLCC). Samsung Electro-Mechanics

AI servers require more than ten times the number of MLCCs compared to regular servers. Typically, over 20,000 units are mounted on a single graphics processing unit (GPU), and up to 600,000 units per server rack. Although the mounting area is limited, the number of MLCCs required has increased significantly, making ultra-compact products essential. In addition, due to the increased heat generated by the high computational performance of AI servers, highly reliable products are required that can withstand harsh environments, including high temperatures (above 105℃), high voltage (100V), and strong bending strength.

Because of these technical requirements, there are high entry barriers for MLCCs used in AI servers, and supply in the global market is centered around a small number of companies. While Samsung Electro-Mechanics holds a 25% share of the overall global MLCC market, it maintains a leading position in the technically demanding AI server MLCC market with a market share of over 40%.

Samsung Electro-Mechanics is using this contract as an opportunity to engage in various discussions with global customers and major big tech companies, including expanding supply beyond 2027. The company plans to steadily increase the proportion of its supply focused on high-value-added products such as those used in AI and automotive electronics.

Dukhyun Jang, CEO of Samsung Electro-Mechanics, stated, "This contract proves that Samsung Electro-Mechanics' MLCCs are recognized as core components in the AI era," adding, "We will take the lead in the market by developing next-generation advanced products that meet customer demands ahead of others."

This content was produced with the assistance of AI translation services.