Samsung Electro-Mechanics lands $210 mil. MLCC supply deal

Samsung Electro-Mechanics has secured a substantial $210.24 million (282 billion won) order to supply multilayer ceramic capacitors (MLCCs) to a global company, according to a regulatory filing released on Tuesday. This marks yet another major deal for the company, driven by the escalating demand for artificial intelligence (AI) server components.

The contract, a one-year agreement spanning from January 1st to December 31st, 2027, was signed under a confidentiality agreement, thus the customer's identity remains undisclosed. This latest deal constitutes 2.5% of Samsung Electro-Mechanics' total sales the previous year, contributing to the company's total contract value reaching nearly 4 trillion won for the year, including undisclosed contracts.

MLCCs, or multilayer ceramic capacitors, are crucial elements in electronic circuits that control electrical current and minimize electromagnetic interference. AI servers, requiring a higher quantity of MLCCs compared to conventional servers, experience increased demand, particularly under high-temperature and high-voltage conditions. This contract comes in the wake of a series of significant orders from global customers as investment in AI data centers surges.