Samsung Electro-Mechanics to Supply MLCCs and Inductors for AI Servers to Major Global Company in KRW 290 Billion Deal

[Financial News] Samsung Electro-Mechanics has signed a supply contract worth approximately KRW 290 billion with a major global company for Multilayer Ceramic Capacitor (MLCC) products and inductors used in artificial intelligence (AI) servers.
According to a Samsung Electro-Mechanics disclosure on the 29th, the contract runs for one year, from January 1 to December 31, 2027. The contract is worth approximately $210 million. It is Samsung Electro-Mechanics' fifth long-term supply agreement (LTA) disclosed this year.
For large companies with total assets of KRW 2 trillion or more, disclosure of a single sales or supply contract is mandatory when the contract value is at least 2.5% of the previous year's revenue. Including contracts that are not subject to mandatory disclosure, Samsung Electro-Mechanics' total supply contract value is believed to be substantial.
MLCCs are passive components that regulate current flow in electronic circuits and prevent signal interference between components. AI servers and data centers require stable power supplies and the ability to handle power fluctuations, creating demand for high-capacity, highly reliable products.
Inductors stabilize power supplies by responding to changes in current and reduce noise during power conversion. As AI servers become more powerful and consume more electricity, inductors used in their power supply circuits are also required to deliver high-current and high-efficiency performance. Through this contract, Samsung Electro-Mechanics will expand supplies of both components used in AI server power systems.
Samsung Electro-Mechanics is advancing its high-capacity and high-reliability MLCC technologies to meet customer requirements. It also plans to increase supplies for AI servers and data centers by developing inductors focused on high-current, high-efficiency and high-reliability performance.
Samsung Electro-Mechanics currently has long-term supply contracts for MLCCs with around 10 global companies. It is also discussing additional long-term supply agreements with other global companies. Including this contract, the total value of the Silicon Capacitor and AI server MLCC and inductor long-term supply contracts disclosed this year is approximately KRW 3.6 trillion.
Demand for AI server MLCCs is expected to continue growing. According to Samsung Electro-Mechanics, AI servers contain more than 10 times as many MLCCs as conventional servers. Goldman Sachs forecasts that the AI server MLCC market will grow at an average annual rate of approximately 34%, from $1.4 billion in 2025 to $5.8 billion in 2030. Samsung Electro-Mechanics holds a market share of at least 40% in the AI server MLCC market.
A Samsung Electro-Mechanics official said, "The performance and reliability levels required for MLCCs are also rising along with technological advances in the global AI market," adding, "We are expanding cooperation with global customers based on differentiated technological capabilities and stable supply capabilities."

[email protected] Park Ji-yeon Reporter