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Panoramic view of Samsung Electro-Mechanics' Suwon plant / Photo courtesy of Samsung Electro-Mechanics

Samsung Electro-Mechanics announced on July 23 that it signed a supply contract worth approximately 300 billion won for artificial intelligence (AI) server multilayer ceramic capacitors (MLCCs) with a global major enterprise.

The contract period runs from January 1, 2027 to December 31, 2027. Samsung Electro-Mechanics will stably supply high-performance MLCCs to be applied in the client's AI servers and data center systems.

Samsung Electro-Mechanics has been steadily expanding long-term supply agreements with global clients, focusing on AI server components. Following a long-term supply contract for silicon capacitors worth around 1.5 trillion won signed with a global client in May, the company secured a deal worth approximately 450 billion won in June with a global Big Tech firm for AI server MLCCs.

Securing large-scale, long-term supply contracts for MLCCs in succession is unusual. Samsung Electro-Mechanics explained that this contract demonstrates how MLCCs are transitioning beyond simple supply items into strategic components that dictate the performance and reliability of AI infrastructure.

Samsung Electro-Mechanics holds a global leading position in the AI server MLCC market with a market share exceeding 40 percent.

AI server MLCCs require more than 10 times the volume of regular servers—up to 600,000 units per server rack—while meeting stringent reliability standards, including ultra-small size, ultra-high capacity, high temperature and voltage tolerance, and bending strength. Due to these high technological barriers to entry, only a limited number of manufacturers can supply them.

Samsung Electro-Mechanics is currently discussing medium- to long-term MLCC supply plans with multiple global clients. By expanding long-term supply contracts with global partners, the company aims to secure a stable demand base for AI server MLCCs while accelerating its portfolio shift toward high-value products.

Chang Duck-hyun, CEO of Samsung Electro-Mechanics, stated, "This contract reflects recognition of the technological capability of Samsung Electro-Mechanics' MLCCs as a key component in AI infrastructure," adding, "Based on customer trust, we will lead the AI components market by developing next-generation advanced products and building a stable supply system."

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Samsung Electro-Mechanics MLCCs / Photo courtesy of Samsung Electro-Mechanics

                                                                                                             Ahn So-yeon