Samsung Electro-Mechanics has signed a supply contract worth approximately 3 billion won (about $2.3 billion) for multilayer ceramic capacitors (MLCC) intended for artificial intelligence (AI) servers. This follows a previous contract worth 4.5 billion won, expanding the long-term demand base for high-value components used in AI servers.
On July 23, Samsung Electro-Mechanics announced it will supply about $200 million worth of MLCCs for AI servers to a global large enterprise. The contract period runs from January 1, 2027, to December 31, 2027.
The identity of the client has not been disclosed. The customer for the previous 4.5 billion won contract is believed to be a U.S.-based big tech company, but the current client is only referred to as a 'global large enterprise.' It is unclear whether this order is for additional quantities from an existing customer or a new server and data center client, as the previous contract also kept the client's name confidential due to non-disclosure obligations.
MLCCs are components that store electricity and supply it stably to semiconductors while reducing signal interference in circuits. AI servers experience rapid fluctuations in power usage during processing, making the power control capabilities of MLCCs directly impact system performance and stability.
AI servers contain more than ten times the number of MLCCs compared to standard servers, with up to 600,000 capacitors installed in a single server rack. These components must be compact yet high-capacity, and they need to withstand high temperatures, high voltages, and board flexing.
Samsung Electro-Mechanics is estimated to hold over 40% market share in the AI server MLCC sector. The higher proportion of AI server products compared to the overall MLCC market share is attributed to the company's technological competitiveness in ultra-small, high-capacity products and high-reliability components.
Including this latest contract, Samsung Electro-Mechanics has announced a total of approximately 7.5 billion won in supply contracts for AI server MLCCs this year, which corresponds to about 6.6% of its annual revenue for 2025.
In May, the company also secured a long-term supply contract for silicon capacitors worth 15 billion won. Silicon capacitors are components that stabilize power within GPU and high-bandwidth memory packages. Together with MLCCs, they are part of a trend to develop high-value passive components for AI infrastructure as a new growth axis.
Samsung Electro-Mechanics is in discussions with multiple global clients for additional supply contracts. The company plans to shift from responding to short-term orders to securing production volumes through long-term contracts, focusing on AI and automotive products.
Jang Deok-hyun, CEO of Samsung Electro-Mechanics, stated, "This contract is a recognition of the technological capabilities of Samsung Electro-Mechanics' MLCCs as core components of AI infrastructure. We will lead the AI component market by developing next-generation advanced products and establishing a stable supply system."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.