Samsung Electro-Mechanics has signed a supply contract worth approximately 2.9 trillion won for multilayer ceramic capacitors (MLCCs) and inductors for artificial intelligence (AI) servers with a major global corporation. This marks the fifth long-term supply contract secured this year, bringing the total contract value to about 36 trillion won.
The company announced on September 29 that it will supply MLCCs and inductors for AI servers from January to December 2027. The identity of the client has not been disclosed.
MLCCs play a crucial role in providing stable current to electronic circuits and reducing signal interference between components. AI servers require higher power consumption than standard servers, necessitating high-capacity and high-reliability products. Inductors are also essential components that stabilize current during power conversion and reduce noise.
This contract includes both MLCCs and inductors. In response to the increasing power consumption of AI servers, Samsung Electro-Mechanics is developing high-current, high-efficiency inductors and expanding its supply of high-value passive components alongside MLCCs.
Since May, the company has secured contracts for silicon capacitors worth about 1.5 trillion won, followed by contracts worth 454 billion won in June, 295 billion won in July, and 1.072 trillion won for AI server MLCCs earlier this month. With this latest contract, the total value of long-term supply contracts has surged to approximately 36 trillion won in just over four months.
Samsung Electro-Mechanics currently has long-term supply contracts with over ten global companies for MLCCs and is in discussions for additional contracts. In the second quarter, the growth of its components business continued, driven by increased sales of MLCCs for AI servers and networks.
AI servers require more than ten times the number of MLCCs compared to standard servers. Goldman Sachs projects that the related market will grow from $1.4 billion in 2025 to $5.8 billion by 2030, with an average annual growth rate of about 34%. Samsung Electro-Mechanics holds over 40% market share in this sector.
A representative from Samsung Electro-Mechanics stated, "As the global AI market advances technologically, the performance and reliability requirements for MLCCs are also increasing. We are expanding our collaboration with global clients based on our differentiated technology and stable supply capabilities."
* This article has been translated by AI.
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