Samsung Electro-Mechanics announced on the 1st that it has signed a $780 million (approximately 1.0722 trillion KRW) supply contract for multilayer ceramic capacitors (MLCCs) used in artificial intelligence (AI) servers with a global conglomerate. This is the largest long-term MLCC supply contract to date.
The contract period spans one year, from January 1 to December 31 of next year. The specific customer company was not disclosed.
In June, Samsung Electro-Mechanics had previously secured a 450 billion KRW contract, calling it an unusually large order, but this new contract exceeds that by more than double.
MLCCs are essential passive components that stabilize current flow in electronic circuits and prevent signal interference between parts. AI server MLCCs, unlike standard products, must endure high-temperature and high-voltage environments while operating 24/7, requiring both high capacitance and high reliability. Due to their technical complexity, only a few companies produce them.
AI servers require MLCCs in quantities over 10 times greater than general servers, and as investments in AI data centers expand, MLCC demand is expected to rise rapidly.
Since May, Samsung Electro-Mechanics has consecutively signed long-term supply contracts worth approximately 2.25 trillion KRW for silicon capacitors and AI server MLCCs with multiple companies. Adding this latest contract brings the total to around 3.32 trillion KRW.
For MLCCs, Samsung Electro-Mechanics has now signed long-term agreements (LTAs) with over 10 global companies, including the latest client. The company is actively discussing additional LTAs with multiple global enterprises.
The consecutive large-scale supply contracts reflect both the shortage of AI server MLCCs and the surging demand.
A Samsung Electro-Mechanics representative stated, “This contract is a testament to the global customer's recognition of Samsung Electro-Mechanics' technological capabilities and supply reliability. We will expand our high-reliability MLCC supply for AI servers to solidify our leadership in the AI market.”
According to Goldman Sachs, the AI server MLCC market is projected to grow at a compound annual rate of approximately 34%, from $1.4 billion in 2025 to $5.8 billion in 2030. Samsung Electro-Mechanics currently holds over 40% market share in the global AI server MLCC sector, maintaining its leading position.
