Samsung Electro-Mechanics Wins Another AI Server MLCC Order; Long-Term Contracts Reach 3.9 Trillion Won This Year

[Financial News] Samsung Electro-Mechanics has additionally signed a long-term supply contract worth 290 billion won with a major global customer for multilayer ceramic capacitors (MLCCs) used in artificial intelligence (AI) servers. As demand for high-performance MLCCs rapidly grows amid increased investment in AI data centers, the total value of long-term supply contracts Samsung Electro-Mechanics has signed this year has risen to about 3.9 trillion won.
Samsung Electro-Mechanics announced on the 6th that it had signed a supply contract worth about 290 billion won with a major global company for MLCCs used in AI servers. The contract runs for one year, beginning January 1 next year. Based on company disclosures, this is the sixth long-term supply contract signed by Samsung Electro-Mechanics so far this year.
MLCCs are key electronic components that store electricity and supply it stably to semiconductors while preventing signal interference between components. AI servers use high-performance semiconductors for large-scale computing and operate around the clock. As a result, they require high-capacity, high-reliability MLCCs that can function reliably under high-temperature and high-voltage conditions.
The number of MLCCs installed in each AI server is also rising rapidly. AI servers use more than 10 times as many MLCCs as conventional servers, with up to 600,000 units used per server rack. Suppliers must meet stringent reliability standards covering not only ultra-small size and ultra-high capacity, but also high-temperature and high-voltage performance and flexural strength. This limits the number of companies capable of supplying the products.
Samsung Electro-Mechanics is expanding its long-term supply agreements (LTAs) with global customers based on its high-capacity, high-reliability MLCC technology and production capabilities. It currently has long-term supply contracts with around 10 customers and is also discussing additional supply agreements with several global companies.
Since May this year, Samsung Electro-Mechanics has signed long-term supply contracts covering silicon capacitors, AI server MLCCs and inductors worth about 3.9 trillion won, based on company disclosures. As demand for high-value-added components expands, particularly for AI servers, the company is securing a stable demand base through long-term contracts while accelerating the shift of its product portfolio toward higher-value-added products.
The AI server MLCC market, a key focus for Samsung Electro-Mechanics, is also expected to grow rapidly. According to Goldman Sachs, the global AI server MLCC market is projected to expand at an average annual rate of about 34%, from $1.4 billion last year to $5.8 billion by 2030. Samsung Electro-Mechanics maintains a leading position in the global market, with a share of more than 40%.
Samsung Electro-Mechanics said, "Customer demand for high-performance MLCCs continues to rise alongside growth in the AI market. Based on our differentiated technological capabilities and stable supply, we will expand the share of AI-focused MLCC products and further strengthen our competitiveness in the global market."

[email protected] Im Su-bin Reporter