6th Major Deal: Samsung Electro-Mechanics Approaches KRW 4 Trillion in AI Parts Orders

Sixth LTA Signed This Year

Samsung Electro-Mechanics has once again secured a large-scale long-term agreement (LTA) for multilayer ceramic capacitors (MLCC) for artificial intelligence (AI) servers, worth KRW 290 billion, with a major global corporation, bringing the company's cumulative order volume close to KRW 4 trillion.

Samsung Electro-Mechanics announced this on October 6 through its disclosure. The contract period is from January 1 to December 31 next year, covering a total of one year. According to disclosure records, this is the company’s sixth major long-term supply contract so far this year.

MLCCs are essential components that store electricity and supply it stably to semiconductors, while also preventing signal interference between parts. In particular, MLCCs used in AI data centers and AI servers must withstand continuous 24-hour operation in high-temperature and high-voltage environments, making ultra-high capacity and high reliability technology indispensable.

By signing consecutive long-term supply agreements with multiple global companies, Samsung Electro-Mechanics has demonstrated unrivaled production capability and technological competitiveness. From May this year to the current contract, the company has successively secured long-term supply agreements in the fields of silicon capacitors, AI server MLCCs, and inductors, amounting to approximately KRW 3.9 trillion based on disclosure records. Through this, Samsung Electro-Mechanics is accelerating the transition to a high-value-added, portfolio-driven business while securing a stable demand base.

MLCCs for AI servers require more than 10 times the capacity compared to general servers, with up to 600,000 units per server rack. Additionally, they must meet stringent reliability standards, including ultra-compact size, ultra-high capacity, high temperature and voltage tolerance, and bending strength. Due to these high technological entry barriers, only a select few suppliers can actually deliver these products. According to Goldman Sachs, the global market for MLCCs for AI servers is expected to grow from USD 1.4 billion in 2025 to USD 5.8 billion in 2030, representing an average annual growth rate of about 34%. Samsung Electro-Mechanics maintains a leading global market position, securing a market share of over 40% in AI server MLCCs.

A representative from Samsung Electro-Mechanics said, "As the AI market grows, customer demand for high-performance MLCCs is continuously increasing," and added, "We will further expand our portfolio of MLCC products for AI and strengthen our global market competitiveness, backed by differentiated technology and stable supply."

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