Samsung Electro-Mechanics said on the 1st it signed a supply contract for multilayer ceramic capacitors (MLCC) for artificial intelligence (AI) servers worth about 1.0722 trillion won ($780 million) with a global large corporation. The contract runs for one year from Jan. 1, 2027, to Dec. 31 of the same year, and is the largest ever among MLCC long-term agreements (LTA).
An MLCC is a key component that regulates electric current to flow stably in electronic circuits and prevents signal interference between parts. MLCCs for AI servers must withstand 24-hour operation in high-temperature, high-voltage environments, so they require both high capacity and high reliability compared with general products, and among MLCCs they have a high level of technical difficulty, leaving only a few companies capable of production. Samsung Electro-Mechanics said the deal reflects recognition of its MLCC design technology, product reliability in high-temperature, high-voltage environments, and production and quality control capabilities to meet demand from large global customers.
Including this contract, Samsung Electro-Mechanics has signed long-term MLCC supply agreements with about 10 global corporations and plans to actively respond by discussing additional contracts with many global corporations. Since May, it has been signing back-to-back long-term supply contracts worth about 2.25 trillion won for silicon capacitors and MLCCs for AI servers, accelerating the securing of a stable demand base and a shift to a high value-added portfolio.
MLCCs for AI servers are installed more than 10 times as much as in general servers, and demand is expected to grow rapidly as investment in AI data centers expands. According to Goldman Sachs, the MLCC market for AI servers is expected to grow at an average annual rate of about 34%, from $1.4 billion in 2025 to $5.8 billion in 2030. Samsung Electro-Mechanics holds a market share of more than 40% in MLCCs for AI servers, maintaining a global lead.
A Samsung Electro-Mechanics official said, "This contract shows that global customers recognize Samsung Electro-Mechanics' technology and supply stability," and added, "We will expand supplies of high-reliability MLCCs for AI servers to secure firm leadership in the AI market."