Samsung Electro-Mechanics Signs 300 Billion KRW AI Server MLCC Supply Contract with Global Corporation

To Be Supplied Over One Year in 2027
Additional Long-Term Supply Contracts in Discussion with Multiple Global Clients

On July 23, Samsung Electro-Mechanics announced that it had signed a supply contract for multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers worth approximately 300 billion KRW with a major global corporation.

The contract period is for one year, spanning from January 1, 2027 to December 31, 2027. Samsung Electro-Mechanics plans to supply high-performance MLCCs to be installed in the customer’s AI servers and data center systems.

Stacked Ceramic Capacitor (MLCC) by Samsung Electro-Mechanics. Samsung Electro-Mechanics

MLCCs are key components that store electricity and then reliably supply it to semiconductors to help them function smoothly. They also remove signal interference (noise), thereby enhancing the performance and stability of electronic devices.

The contract reflects Samsung Electro-Mechanics' MLCC design technology, product reliability in high-temperature and high-voltage environments, as well as its production and quality control capabilities that meet the demands of major global clients.

Samsung Electro-Mechanics continues to expand long-term supply contracts focused on components for AI servers with global clients. In May, the company signed a long-term supply contract worth approximately 1.5 trillion KRW for silicon capacitors with a global client, and in June, it finalized a supply contract for AI server MLCCs worth about 450 billion KRW with a major global big tech company.

Samsung Electro-Mechanics maintains a leading position in the global market for MLCCs for AI servers, with a market share exceeding 40%. MLCCs for AI servers require more than ten times the amount used in general servers (up to 600,000 units per server rack) and must also meet strict reliability standards for ultra-compact size, ultra-high capacity, high temperature and voltage, and bending strength. As a result, only a limited number of suppliers can meet these requirements.

Samsung Electro-Mechanics is currently discussing mid- to long-term MLCC supply plans with multiple global clients. The company aims to secure a stable demand base and accelerate its transition to a portfolio focused on high value-added products by expanding long-term supply contracts.

Dukhyun Jang, President of Samsung Electro-Mechanics, stated, “This contract is proof that Samsung Electro-Mechanics’ MLCCs are recognized as core components for AI infrastructure,” adding, “Based on our customers’ trust, we will lead the AI component market by developing next-generation advanced products and building a stable supply system.”

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