Samsung Electro-Mechanics has signed a supply contract worth 290 billion won (approximately $210 million) for multilayer ceramic capacitors (MLCC) intended for artificial intelligence (AI) servers. As investments in AI data centers expand, the total value of long-term supply contracts for high-value components related to AI, including silicon capacitors and MLCCs, has reached 3.9 trillion won this year.
The company announced on October 6 that the contract will run from January 1 to December 31, 2027. This marks the sixth long-term supply agreement (LTA) disclosed this year.
Just a week prior, Samsung Electro-Mechanics secured another long-term contract worth 285 billion won for MLCCs and inductors. Since May, the company has consistently obtained long-term contracts focused on silicon capacitors and MLCCs for AI servers. Including this latest contract, the cumulative amount for LTAs this year stands at approximately 3.9 trillion won. Discussions are ongoing with several global companies for additional supply agreements.
MLCCs are essential components that store electricity and supply it reliably to semiconductors while reducing signal interference between parts. AI servers require high-capacity and high-reliability MLCCs due to their greater power consumption and computational load compared to standard servers.
The number of MLCCs used in AI servers is significantly higher, with up to 600,000 units installed in a single server rack. These servers must operate continuously in data center environments, which demand high reliability standards, including resistance to high temperatures, high voltages, and bending stress.
As the technical barriers for MLCCs designed for AI servers increase, the number of suppliers is limited. Samsung Electro-Mechanics claims to hold over 40% market share in the AI server MLCC sector. 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%.
Through long-term contracts, Samsung Electro-Mechanics aims to capture demand driven by increased investment in AI infrastructure while also raising the proportion of high-value products. The expansion of AI-related orders now includes silicon capacitors and inductors, marking a significant shift from traditional MLCCs.
A company representative stated, "As the AI market grows, customer demand for high-performance MLCCs continues to rise. We will expand our product share of MLCCs for AI based on our technological capabilities and stable supply capacity."
* This article has been translated by AI.
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