Samsung Electro-Mechanics Lands Record $740 Million AI Server MLCC Deal

Samsung Electro-Mechanics has signed its largest long-term multilayer ceramic capacitor (MLCC) supply agreement to date, solidifying its dominance in the rapidly growing AI server component industry. On September 1, the company announced it had struck a one-year deal worth approximately 1.0722 trillion won with a leading global corporation for MLCCs used in AI servers.

This contract spans from January 1, 2027, to December 31, 2027, making it the biggest long-term MLCC supply arrangement in Samsung Electro-Mechanics' history. The agreement underscores the escalating demand from global tech firms for high-performance components capable of operating reliably in rigorous AI data center settings. MLCCs, crucial electronic components regulating current flow within circuits, are particularly vital in AI servers due to their demanding operating conditions, including high capacitance, reliability, and continuous performance under elevated temperatures and voltages.

Samsung Electro-Mechanics' superior design, reliability in high-temperature and high-voltage conditions, along with its extensive global production and quality control infrastructure, played a key role in clinching this contract. The company has also been expanding its clientele through other long-term supply agreements. Notably, Samsung Electro-Mechanics has signed long-term deals with more than 10 global entities, and the company is currently engaging with additional multinational customers, signaling its intention to actively pursue further opportunities.

In the past year alone, Samsung Electro-Mechanics has accelerated its transition towards high-value components by sealing a series of major long-term supply contracts, including those for silicon capacitors and AI server MLCCs, thus establishing a more predictable demand base for its advanced component portfolio. The surge in AI server demand is anticipated to fuel structural expansion in the MLCC market, as AI servers necessitate significantly more MLCCs compared to conventional servers, with the quantities installed per server estimated to be over 10 times greater.

As investment in AI data centers continues to grow globally, the demand for high-capacity, high-reliability MLCCs is expected to mirror this upward trajectory. According to Goldman Sachs, the global AI server MLCC market is forecasted to expand from approximately $1.4 billion in 2025 to $5.8 billion by 2030, reflecting an annual average growth rate of around 34%.

Samsung Electro-Mechanics currently commands over 40% of the global AI server MLCC market, firmly establishing its leadership position in the sector. The company anticipates that the recent supply agreement will further cement its presence as the market shifts towards high-performance components for AI infrastructure. A Samsung Electro-Mechanics official commented on the significance of the latest contract, stating that it demonstrates global customers' acknowledgment of the company's technological prowess and supply reliability.

"We will continue to expand the supply of high-reliability MLCCs for AI servers and reinforce our leadership in the rapidly expanding AI market," the official remarked.