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Samsung Electro-Mechanics' Suwon campus. / Courtesy of Samsung Electro-Mechanics

Samsung Electro-Mechanics has signed a contract worth approximately 880 billion won to supply multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers to a major global company. The deal marks its eighth long-term supply agreement this year and its second-largest MLCC supply contract. With additional contracts for key components such as silicon capacitors and semiconductor substrates, the company's cumulative orders have exceeded 5 trillion won.

Samsung Electro-Mechanics announced on Oct. 30 that it had signed a contract worth 879.3 billion won with a major global company to supply MLCCs for AI servers. The one-year contract will run from Dec. 21 through next year, marking the company's second long-term MLCC supply agreement this year.

Samsung Electro-Mechanics has recently signed a series of long-term supply agreements. The latest deal marks its eighth such agreement disclosed since May, bringing the cumulative contract value to approximately 5.18 trillion won.

The company has completed or is pursuing long-term supply agreements with around 50 customers. It expects more than half of its MLCC revenue in 2027 to come from long-term supply contracts.

These agreements are expected to help establish stable supply arrangements based on customers' medium- to long-term demand and strengthen the company's business structure, with a greater focus on high-value-added products. With demand for AI server components currently outpacing supply, industry observers expect more long-term agreements to follow.

Demand for AI server MLCCs is increasing as the performance of key semiconductors, including graphics processing units (GPUs) and application-specific integrated circuits (ASICs), improves. This is because AI computing requires more power, increasing the MLCC capacitance needed to ensure a stable power supply.

Compared with MLCCs used in conventional servers, those designed for AI servers require higher capacitance and smaller sizes while meeting stringent reliability requirements under high temperatures and voltages. These demanding specifications create high barriers to entry, leaving only a handful of suppliers in the global market. Samsung Electro-Mechanics holds a market share of more than 40% in the AI server MLCC market.

"Demand for high-performance, highly reliable MLCCs is growing alongside the expansion of the AI industry," a Samsung Electro-Mechanics official said.

"We will continue strengthening our competitiveness in the AI server MLCC market through differentiated technology and stable supply capabilities," the official added.

                                                                                                                Lee Ji-sun