Samsung Electro-Mechanics Secures $200 Million AI Server MLCC Deal

Samsung Electro-Mechanics has secured a significant $200 million long-term supply agreement for multilayer ceramic capacitors (MLCCs) used in AI servers, solidifying its position in the rapidly growing AI infrastructure market. The contract, spanning from January to December 2027, is the company's sixth major long-term supply deal this year and contributes to a series of agreements targeting components for next-generation computing infrastructure.

MLCCs are crucial in electronic systems, providing stable power to semiconductors and minimizing signal interference in high-demand environments. AI servers demand significantly more MLCCs than conventional servers, with a single rack potentially requiring up to 600,000 units. Samsung Electro-Mechanics is concentrating on high-capacity, high-reliability MLCCs for AI servers, expanding production to meet rising global customer demand.

The company has signed long-term agreements for MLCCs, silicon capacitors, and inductors with several multinational clients, with contracts totaling approximately 3.9 trillion won since May. The AI server MLCC market is projected to grow from $1.4 billion in 2025 to $5.8 billion by 2030, at an annual growth rate of around 34%. Samsung Electro-Mechanics currently holds over 40% of the global AI server MLCC market, positioning it as a leading supplier amid increasing AI infrastructure investments by hyperscalers and data center operators.

The company aims to capitalize on additional supply opportunities with global customers while expanding its AI-focused product portfolio.