Samsung Electro-Mechanics has signed a supply contract worth approximately 450 billion won ($450 million) with global big tech companies for multilayer ceramic capacitors (MLCC) used in artificial intelligence (AI) servers. This move comes as the demand for high-performance and reliable components grows with the expansion of AI servers, marking an effort to strengthen its position in the high-value MLCC market.
According to industry sources on June 30, Samsung Electro-Mechanics announced that it has entered into a supply agreement for AI server MLCCs, effective from January 1, 2027, to December 31 of the same year.
MLCCs are essential components that store electricity and supply it stably to semiconductors while reducing signal interference within electronic devices. In AI servers, stable power control is crucial as sudden power fluctuations can lead to decreased computational performance.
AI servers require significantly more MLCCs than standard servers. It is reported that over 20,000 MLCCs are used in GPUs, with up to 600,000 MLCCs installed in server racks, representing more than ten times the amount found in conventional servers.
The technology involved in producing MLCCs for AI servers is complex. These components must be miniaturized to fit within limited mounting areas and must meet reliability standards such as withstanding high temperatures above 105 degrees Celsius, high voltages of 100V, and high bending strength due to the demands of high-performance computing.
Industry experts believe that the increased investment in AI servers is driving demand not only for GPUs and high-bandwidth memory (HBM) but also for stabilizing components like MLCCs, which is contributing to improved profitability for electronic component manufacturers.
Samsung Electro-Mechanics holds about 25% of the global MLCC market share. In the highly technical AI server MLCC market, it has secured over 40% market share, maintaining a leading position.
This large-scale contract highlights the supply shortage and high demand for MLCCs used in AI servers. Samsung Electro-Mechanics is expanding its product line for AI servers based on its proprietary material and process technologies, focusing on ultra-small, high-capacity, high-temperature, and high-voltage characteristics.
Following this contract, Samsung Electro-Mechanics is in discussions with global clients and major big tech companies about the potential for expanding supply after 2027. The company plans to increase the proportion of MLCC supplies focused on high-value products such as AI and automotive applications.
Jang Deok-hyun, CEO of Samsung Electro-Mechanics, stated, "This contract is a recognition of Samsung Electro-Mechanics' MLCC as a key component in the AI era. We will develop next-generation advanced products tailored to customer needs and seize market opportunities."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.