Seoul:Samsung Electro-Mechanics Co. announced it has secured an 879.3 billion-won (US$659.3 million) contract to supply multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers to a global company.
According to Yonhap News Agency, the agreement will span one year starting December 21. Due to a confidentiality agreement, the identity of the customer has not been disclosed.
This deal signifies Samsung Electro-Mechanics' eighth long-term supply agreement announced this year and ranks as the second-largest MLCC supply contract disclosed by the company. The electronic components unit of Samsung Electronics Co. has signed long-term supply agreements worth a combined 5.18 trillion won in 2026, encompassing silicon capacitors, MLCCs, and inductors for AI servers.
Samsung Electro-Mechanics has disclosed that it is either finalizing or in discussions for long-term supply agreements of high-value-added MLCCs with approximately 50 customers. The company anticipates these agreements will constitute more than half of its MLCC revenue next year.
MLCCs are crucial electronic components that regulate and stabilize electrical current in circuits, with applications ranging from smartphones and personal computers to automotive electronics and AI servers. MLCCs crafted for AI servers necessitate more sophisticated manufacturing technology compared to those used in mobile devices.
The global AI server MLCC market is projected to grow at an annual average rate of about 34 percent, expanding from $1.4 billion in 2025 to $5.8 billion in 2030, as stated by Goldman Sachs. Samsung Electro-Mechanics continues to maintain a dominant position in this market, holding a market share exceeding 40 percent, According to company.