Samsung Electro-Mechanics said on the 23rd it signed a supply contract worth about 300 billion won for multi-layer ceramic capacitors (MLCC) for artificial intelligence (AI) servers with a global large corporations. The contract runs for one year from Jan. 1, 2027, to Dec. 31 of the same year. Samsung Electro-Mechanics plans to supply high-performance MLCCs for the customer's AI servers and data center systems.
An MLCC is a component that stores electricity, then supplies it stably to semiconductors and removes signal interference. It helps improve the performance and stability of electronic devices. Samsung Electro-Mechanics said the contract reflects recognition of its product reliability in high-temperature, high-voltage environments and its production and quality control capabilities to meet demand from large customers.
Samsung Electro-Mechanics is expanding long-term supply contracts centered on parts for AI servers. In May, it signed a long-term supply contract worth about 1.5 trillion won for silicon capacitors with a global customer, and in June, it signed a contract worth about 450 billion won to supply MLCCs for AI servers to global big tech corporations.
Samsung Electro-Mechanics holds a market share of more than 40% in MLCCs for AI servers. MLCCs for AI servers are installed at least 10 times more than in general servers, and up to 600,000 units are used in a single server rack.
Products for AI servers must meet high reliability standards not only for ultra-small size and ultra-high capacity but also for high temperature, high voltage, and bending strength. Due to these technical entry barriers, the number of companies that can actually supply products is limited.
Samsung Electro-Mechanics is discussing mid- to long-term MLCC supply plans with multiple global customers. Through long-term supply contracts, it plans to secure a demand base for MLCCs for AI servers and shift its business portfolio toward high value-added products.
Samsung Electro-Mechanics President Chang Duck-hyun said, "This contract shows the technological prowess of Samsung Electro-Mechanics' MLCCs as core components of AI infrastructure," adding, "Based on customers' trust, we will lead the AI components market by developing next-generation leading products and establishing a stable supply system."