Samsung Electro-Mechanics said overall supply-demand tension is rising as demand for multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers continues to expand. It plans to respond strategically with pricing aligned to this trend.
Samsung Electro-Mechanics, on an earnings conference call for the first quarter of 2026 held on the 30th, said it was monitoring market conditions, "considering factors such as increases in raw material prices," and stated accordingly. The company said, "We expect MLCC demand in the second quarter to grow across all applications compared with the first quarter," and added, "For industrial MLCCs, as data centers upgrade their power infrastructure and AI servers increase power consumption, MLCC content is rising and demand is growing for high-value-added, high-reliability products, which will intensify the tight supply-demand situation."
Samsung Electro-Mechanics also said, "On next-generation AI server platforms, as power consumption increases, we have launched a new 47-microfarad product with double the capacity of the existing 22-microfarad for graphics processing units (GPUs) and power modules, and it is receiving positive feedback from customers, so we are pursuing long-term contracts to ensure stable supply."
It is moving to secure the high-value-added MLCC market. Samsung Electro-Mechanics said, "To improve power efficiency in AI servers, the 800-volt (V) system used in electric vehicles is being applied more widely," and added, "Demand is growing for high-voltage MLCCs of 1 kilovolt or higher, which are higher priced, and we are working to secure the market." It continued, "Based on solid partnerships with key strategic customers, we will, following the first quarter and into the second quarter, sign preemptive mid- to long-term binding volume contracts to secure visibility on volumes early and build sustainable growth drivers."