In the high-value multilayer ceramic capacitor (MLCC) market, where demand is rapidly increasing centered around artificial intelligence (AI) servers and the battlefield, Samsung Electro-Mechanics has several advantages in core materials and thickness compared to leading corporations. Since Chinese corporations have not yet entered the high-value MLCC market, they are planning to accelerate their market penetration.
During a product seminar held on the 14th at the Taepyeongno Building in Jung-gu, Seoul, Lee Min-gon, Senior Vice President of Samsung Electro-Mechanics, who is in charge of MLCC automotive product development, said this. MLCC is a component that stores electricity and supplies it to semiconductors such as application processors (AP), central processing units (CPU), and graphics processing units (GPU) to help products operate smoothly. It removes signal interference within electronic devices, enhancing performance and stability.
With the blooming AI market, the amount of MLCC installed is also increasing significantly. According to the leading company Murata Manufacturing, AI servers utilize more than 10 to 20 times the amount of MLCC compared to conventional servers. Samsung Electro-Mechanics also explained that the latest AI servers are equipped with more than 10 times the MLCC compared to standard servers. The Senior Vice President noted, "Typically, the power consumption of AI servers is over seven times that of regular servers, and the quantity of MLCC needed is also more than 10 times."
For AI servers, the power consumption is more than 5 to 10 times that of regular servers, requiring a larger amount of MLCC, among which high-value MLCCs such as small and ultra-high-capacity ones are installed. This is because the mounting area for MLCCs, which need to be placed close to the GPU, is limited. Additionally, AI servers are designed with a structure that stacks substrates with multiple GPU modules. Each server integrates dozens of CPUs and GPUs, generating increased heat, necessitating MLCCs that can withstand high temperatures of up to 105 degrees Celsius.
Samsung Electro-Mechanics plans to speed up its push into the rapidly growing MLCC market for AI servers and data centers. Samsung Electro-Mechanics stated that it has secured about 40% of the MLCC market share for AI servers. According to market research firm MarketsandMarkets, the global AI server market is expected to grow from $142.9 billion (approximately 196 trillion won) last year to $837.8 billion (approximately 1,150 trillion won) by 2030.
Plans to gradually expand the supply of MLCCs for automotive applications are also in place. Samsung Electro-Mechanics is increasing deliveries to Chinese electric vehicle corporations such as BYD. Automotive MLCCs are high-value products that take about three times longer to develop compared to IT products and cost more than three times as much. Advanced Driver Assistance Systems (ADAS), which are critical for autonomous driving technology, require sophisticated electronic control, increasing the demand for high-performance MLCCs.
Samsung Electro-Mechanics developed two types of MLCCs for ADAS in 2021, and in 2022, it developed 13 types of MLCCs for automotive powertrains. Last year, it introduced two types of the world's highest-capacity ADAS MLCCs capable of withstanding 16 volts (V) and MLCCs for electric vehicles that can endure high voltages of 2,000V, further solidifying its competitiveness in the market.
Samsung Electro-Mechanics is enhancing its technological competitiveness by developing and manufacturing core raw materials for MLCCs. Few corporations have managed to internalize the core technology of ceramic raw materials. The Senior Vice President explained, "The quality of raw materials, such as powder, is excellent, and the thinness allows for a significant amount to be installed in limited spaces, providing outstanding effective capacity."