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Samsung Electro-Mechanics wins 1.72 tln-won AI server capacitor supply deal in U.S.

SEOUL, Sept. 1 (Yonhap) -- Samsung Electro-Mechanics Co. said Tuesday that it ha...

Samsung Electro-Mechanics wins 1.72 tln-won AI server capacitor supply deal in U.S.

Samsung Electro-Mechanics, the electronic components unit of Samsung Electronics, has secured a 1.72 trillion-won ($1.25 billion) contract to provide multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers to an undisclosed U.S. customer. The agreement, valid from January to December 2027, was signed on September 1, 2023.

Industry experts speculate that the client is likely one of the leading U.S. cloud service providers, given the surge in demand for AI server MLCCs. Major tech giants such as Amazon Web Services, Google, and Meta have been heavily investing in AI data centers, driving the need for these specialized electronic components.

MLCCs play a crucial role in regulating and stabilizing electrical current within circuits. They are utilized in various devices, including smartphones, personal computers, automotive electronics, and most notably, AI servers. However, MLCCs designed specifically for AI servers necessitate more sophisticated manufacturing techniques compared to those used in mobile devices.

Written by urgent.news from Yonhap News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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