Samsung Electro-Mechanics disclosed on the 30th that it signed a 450 billion won supply contract for multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers with global big tech corporations. The contract period is one year, from January to December 2027.
MLCCs are key components that store electricity, supply it stably to semiconductors, and remove signal interference to boost electronic device performance. AI servers are equipped with more than 10 times as many MLCCs as general servers. There are more than 20,000 per GPU and up to 600,000 per server rack. To address high heat generation and power fluctuations that occur during AI computation, high-reliability products that withstand high temperatures of 105°C or higher and high voltages of 100V are required.
Because of demanding technical requirements, only a handful of companies can supply MLCCs for AI servers in the global market. Samsung Electro-Mechanics holds a 25% share of the overall MLCC market and more than 40% for AI server MLCCs, placing it among the global leaders. Large-scale purchase orders are unusual in the MLCC industry, and this contract is seen as evidence of both a supply shortage and strong demand for AI server MLCCs.
Samsung Electro-Mechanics is currently in discussions with global customers and major big tech corporations to expand supply beyond 2027.
Chang Duck-hyun, president of Samsung Electro-Mechanics, said, "This contract is the result of Samsung Electro-Mechanics MLCCs being recognized for their technology as core components in the AI era," adding, "We will take the lead in developing next-generation, leading-edge products to preempt the market."