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Samsung Electro-Mechanics Suwon campus. / Samsung Electro-Mechanics

Samsung Electro-Mechanics has signed a long-term supply contract for multi-layer ceramic capacitors (MLCCs) intended for artificial intelligence (AI) servers. With six contracts disclosed this year alone, the company continues to expand its supply on the back of rising demand in the AI era.

On the 6th, Samsung Electro-Mechanics announced that it inked a 290 billion won supply deal for AI server MLCCs with a major global corporation. This long-term contract spans one year starting in January next year, and the company has also entered into long-term supply agreements with multiple other companies in addition to this deal.

MLCCs serve as critical components that store electricity and deliver it to semiconductors to ensure smooth operation while preventing signal interference between parts. In particular, MLCCs for AI servers require high capacitance and high reliability capable of enduring continuous 24-hour operation under high-temperature and high-voltage conditions.

Leveraging the technological capability and stable manufacturing capacity to deliver these attributes, Samsung Electro-Mechanics is addressing expanding demand from global clients. Between May of this year and this latest deal, the company has secured successive long-term supply contracts totaling approximately 3.9 trillion won for silicon capacitors, MLCCs, and inductors, accelerating its efforts to secure a stable demand base and transition its portfolio toward high-value-added products.

Crucially, AI servers require more than ten times the volume of MLCCs used in standard servers. Because entry barriers remain steep and qualified suppliers are limited, Samsung Electro-Mechanics is broadening its footprint in the MLCC market backed by dependable production capacity.

According to Goldman Sachs, the market for AI server MLCCs is projected to expand at an average annual growth rate of roughly 34%, rising from 1.4 billion dollars in 2025 to 5.8 billion dollars in 2030. Currently, Samsung Electro-Mechanics commands a market share of more than 40% in AI server MLCCs.

A Samsung Electro-Mechanics official stated, "Alongside the growth of the AI market, customer demand for high-performance MLCCs continues to climb," adding, "We will expand the proportion of AI-oriented MLCC products and further bolster our global market competitiveness through differentiated technology and stable supply."

                                                                                                                Lee Ji-sun