Samsung Electro-Mechanics Secures $610 Million AI Server MLCC Deal, Strengthening Long-Term Growth Prospects

Samsung Electro-Mechanics has inked a significant $610 million deal to supply multilayer ceramic capacitors (MLCCs) for AI servers, bolstering its prospects in the expanding AI infrastructure market. Signed on October 30, the one-year agreement is set to run from December 21, 2026, through December 21, 2027. This marks Samsung Electro-Mechanics' eighth long-term supply contract for 2026 and the second-largest MLCC deal announced this year.

The company has been actively building its contractual relationships for various strategic components, including silicon capacitors, inductors, and FC-BGA substrates, with the combined value of these agreements reaching approximately KRW 5.18 trillion. Beyond immediate financial gains, the surge in long-term agreements underscores Samsung Electro-Mechanics' strategy to secure stable demand and enhance its standing in the high-performance electronics sector.

More than 50 customers have entered into long-term supply agreements with the company, with MLCC revenue projected to account for over half of its MLCC revenue in 2027. The rapid growth of AI computing is driving new demands for electronic components in data centers and high-performance servers, particularly as GPUs and ASICs grow more powerful, leading to increased semiconductor dies and power consumption.

MLCCs are crucial in maintaining stable voltage and power delivery, and Samsung Electro-Mechanics anticipates a twofold increase in MLCC capacitance for AI servers annually as computing performance advances. The sophisticated technology required for AI server MLCCs, including higher capacitance and compact dimensions, limit competition, with Samsung Electro-Mechanics holding more than 40% of the market.

Goldman Sachs projects the global AI server MLCC market to grow from US$1.4 billion in 2025 to US$5.8 billion by 2030, with an impressive CAGR of 34%. For Samsung Electro-Mechanics, securing these long-term contracts with major customers could translate robust AI infrastructure investment into more predictable revenue. The company is also focused on improving its business mix by increasing the share of technologically advanced products and reducing reliance on shipment volume growth.

A Samsung Electro-Mechanics spokesperson highlighted the increasing demand for high-performance and highly reliable MLCCs alongside the AI industry's expansion, promising continued efforts to strengthen its competitiveness in this market through innovative technology and dependable supply capabilities.