Seoul:Samsung Electro-Mechanics Co. has announced a significant contract valued at 290 billion won (approximately US$215.8 million) for supplying multilayer ceramic capacitors (MLCCs) to a global company for AI servers. This agreement will span from January 2027 to December 2027.
According to Yonhap News Agency, The identity of the customer remains undisclosed due to a confidentiality agreement. This deal represents the sixth long-term supply agreement that Samsung Electro-Mechanics has secured this year.
The company has committed to several long-term supply deals this year, totaling 3.9 trillion won. These agreements encompass the supply of silicon capacitors, MLCCs, and inductors, specifically for AI servers.
MLCCs are crucial components that manage and stabilize electrical currents in circuits, and they are utilized extensively in devices such as smartphones, personal computers, automotive electronics, and AI servers. The MLCCs designed for AI servers necessitate more sophisticated manufacturing technology compared to those used in mobile devices.
The global market for AI server MLCCs is projected to experience substantial growth, with Goldman Sachs predicting an annual average increase of about 34 percent, escalating from $1.4 billion in 2025 to $5.8 billion by 2030.
Samsung Electro-Mechanics currently holds a commanding position in the global AI server MLCC market, boasting a market share exceeding 40 percent, as stated by the company.