Samsung Electro-Mechanics Signs 1 Trillion Won MLCC Supply Deal for AI Servers, Its Largest Ever

[Financial News] Samsung Electro-Mechanics is accelerating its push into the AI server market after signing a supply contract worth more than 1 trillion won for MLCC for AI Servers with a major global client. As investment in AI data centers expands and demand for high-performance MLCC rises rapidly, the company has secured its largest-ever long-term MLCC supply deal, broadening a stable demand base and reinforcing its shift toward higher-value products.
Samsung Electro-Mechanics said on the 1st that it had signed a supply contract worth about 1.0722 trillion won for MLCC for AI Servers with a major global company. The contract runs for one year starting Jan. 1 next year. It is the largest long-term MLCC supply deal the company has ever secured.
MLCCs are key components that regulate the flow of current in electronic circuits and prevent signal interference between parts. In particular, MLCC for AI Servers must withstand 24-hour operation in high-temperature, high-voltage environments, unlike conventional products. That means they require both high capacity and high reliability, making them technically difficult to produce and limited to only a few manufacturers.
The deal reflects recognition of Samsung Electro-Mechanics' MLCC design technology, product reliability in high-temperature and high-voltage environments, and its production and quality management capabilities for meeting demand from major global customers. It is expected to strengthen the company's competitiveness in the AI server market and further expand its position.
Including this customer, Samsung Electro-Mechanics has signed long-term MLCC supply agreements with about 10 global companies. It is also in talks on long-term supply contracts with several other global firms and plans to respond actively.
Since May, Samsung Electro-Mechanics has consecutively signed long-term supply contracts worth about 225 billion won for Silicon Capacitor and MLCC for AI Servers, accelerating efforts to secure a stable demand base and shift its portfolio toward higher-value products.
MLCC for AI Servers use more than 10 times as many MLCCs as regular servers, and demand is expected to rise rapidly as investment in AI data centers expands.
According to Goldman Sachs, the global market for MLCC for AI Servers is projected to grow at an average annual rate of about 34%, from $1.4 billion last year to $5.8 billion in 2030. Samsung Electro-Mechanics has secured more than 40% of the market and remains among the global leaders.
A Samsung Electro-Mechanics official said, "This contract is the result of global customers recognizing Samsung Electro-Mechanics' technological capabilities and supply stability," adding, "We will expand our supply of highly reliable MLCC for AI Servers and secure a firm leadership position in the AI market."
[email protected] Lim Su-bin Reporter