Samsung Electro-Mechanics wins $780 mil. AI server capacitor contract
Summary
Samsung Electro-Mechanics said Tuesday it secured a 1.07 trillion won contract to supply MLCCs for AI servers to a global customer. The deal runs from January through December 2027 and is the company’s largest long-term MLCC supply agreement. The customer was not identified because of a confidentiality agreement. The company said the contract will help expand high-reliability MLCC supplies and strengthen its market position.
Key Facts
- The contract is worth 1.07 trillion won, or $780 million.
- It covers supply from January through December 2027.
- Samsung Electro-Mechanics said it has signed long-term supply agreements with more than 10 global companies, including this deal.
- Since May, the company has secured long-term supply agreements worth about 2.25 trillion won, mainly for silicon capacitors and MLCCs used in AI servers.
- The company said it holds more than 40 percent of the global market for MLCCs used in AI servers.
Samsung Electro-Mechanics' multilayer ceramic capacitors / Courtesy of Samsung Electro-Mechanics
Samsung Electro-Mechanics said Tuesday it has secured a 1.07 trillion won ($780 million) contract to supply multilayer ceramic capacitors (MLCC) for artificial intelligence (AI) servers to a global customer.
The contract, which runs from January through December 2027, is the largest long-term MLCC supply agreement in the company’s history. Samsung Electro-Mechanics did not identify the customer, citing a confidentiality agreement. Industry observers said the client is believed to be one of the world’s major AI semiconductor companies.
Demand for MLCCs used in AI servers has risen rapidly as major cloud service providers, including Amazon Web Services, Google and Meta, and chipmakers such as Nvidia and AMD expand their investments in AI infrastructure.
MLCCs are essential electronic components that regulate and stabilize electrical current in circuits while helping prevent signal interference between components. They are widely used in smartphones, personal computers, automotive electronics and servers.
MLCCs designed for AI servers require high capacity and reliability because the servers operate around the clock in high-temperature, high-voltage environments. AI servers also use more than 10 times as many MLCCs as conventional servers, making the components a key beneficiary of the expansion of AI data centers.
Samsung Electro-Mechanics said it has signed long-term supply agreements with more than 10 global companies, including the latest deal, and is in talks with several other customers on additional contracts.
Since May, the company has secured a series of long-term supply agreements worth about 2.25 trillion won, mainly for silicon capacitors and MLCCs used in AI servers, strengthening its stable demand base.
Samsung Electro-Mechanics currently holds more than 40 percent of the global market for MLCCs used in AI servers, maintaining a leading position.
According to Goldman Sachs, the global market for MLCCs for AI servers is expected to grow at an average annual rate of about 34 percent, from $1.4 billion in 2025 to $5.8 billion in 2030.
Samsung Electro-Mechanics plans to use the latest contract to expand supplies of high-value, high-reliability MLCCs and further strengthen its market position.
“This contract demonstrates global customers’ recognition of Samsung Electro-Mechanics’ technological capabilities and supply stability,” a company official said. “We will expand supplies of high-reliability MLCCs for AI servers and strengthen our leadership in the AI market.”
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