Samsung Electro-Mechanics Signs KRW 879.3 Billion AI Server MLCC Supply Deal with Major Global Company

Second-largest single contract disclosed this year
Long-term supply agreements signed or in progress with around 50 companies

Samsung Electro-Mechanics announced on October 30 that it had signed a KRW 879.3 billion contract to supply multilayer ceramic capacitors (MLCCs) for AI servers to a major global company.

Samsung Electro-Mechanics MLCC product image. Samsung Electro-Mechanics

The contract runs for one year, from December 21, 2026, to December 21, 2027. It is the second-largest single long-term MLCC supply contract Samsung Electro-Mechanics has disclosed this year.

This is the eighth long-term supply contract for key components that Samsung Electro-Mechanics has disclosed this year. Since May, the company has secured a series of major contracts centered on key component categories, including silicon capacitors, MLCCs for AI servers, power inductors and flip-chip ball grid arrays (FCBGAs). The cumulative value of contracts disclosed this year has reached approximately KRW 5.18 trillion.

Samsung Electro-Mechanics has completed or is pursuing long-term component supply agreements with around 50 customers. Next year, more than half of its total MLCC revenue is expected to come from stable long-term supply agreements. The company aims to build a stable earnings structure centered on high-value-added products, supported by medium- to long-term demand despite market volatility.

The recent expansion of the AI server market is benefiting Samsung Electro-Mechanics' MLCC business. As the number of dies in graphics processing units (GPUs) and application-specific integrated circuits (ASICs), which handle AI computing, increases, power consumption rises exponentially. Consequently, the required capacity of MLCCs installed to regulate current evenly and stably in high-power environments is also growing rapidly, roughly doubling each year.

Unlike products for conventional servers, MLCCs for AI servers must meet stringent durability and reliability standards, withstanding extreme heat and high voltage in addition to offering ultra-high capacitance and an ultra-compact form factor. This creates very high barriers to entry, and supply in the global market is concentrated among a small number of leading manufacturers. Leveraging its technological capabilities, Samsung Electro-Mechanics has secured more than 40% of the global AI server MLCC market and maintains its position among global leaders.

According to global investment bank Goldman Sachs, the global AI server MLCC market is projected to grow sharply at an annual average rate of around 34%, from $1.4 billion (approximately KRW 1.9 trillion) in 2025 to $5.8 billion in 2030.

A Samsung Electro-Mechanics official said, "Demand for high-performance, high-reliability MLCCs is expanding as the AI industry grows." The official added, "We will continue to strengthen our competitiveness in the AI server MLCC market based on our differentiated technological capabilities and stable supply capacity."

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