Samsung Electro-Mechanics will raise prices for multilayer ceramic capacitors (MLCC) supplied to sales partners by 30% starting next month. The move comes as demand for high-spec MLCCs for artificial intelligence (AI) servers has increased and supply pressures have grown.
According to the industry on the 29th, Samsung Electro-Mechanics recently notified sales partners in a notice that it will increase prices for all MLCC items subject to the "SEMSZ markup business code" by 30% from shipments on Aug. 1 compared with current levels.
In the notice, Samsung Electro-Mechanics said, "Over the past few months, structural demand growth has appeared in the global electronics industry," and noted, "Despite improvements in production efficiency and expanded production lines, supply chain pressures have exceeded manageable levels."
An MLCC is a component that stores electricity and then supplies it stably to semiconductors while reducing voltage fluctuations and signal interference. As demand grows for accelerators for AI servers and data centers, orders for high-capacity, high-reliability products are also increasing.
Samsung Electro-Mechanics signed supply contracts for MLCCs for AI servers with global clients in June and this month worth 453.99 billion won and 295.12 billion won, respectively. With increased supply volumes and the added effect of price hikes, there are projections that improvements in the components business's performance could widen.