Samsung Electro-Mechanics lands record AI server MLCC order worth KRW 1.0722 trillion, secures 40% share
TECHWORLD ·
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Samsung Electro-Mechanics announced on the 1st that it has signed a supply contract for AI server MLCCs with a global large company.
The contract is worth about KRW 1.0722 trillion, or USD 780 million, and runs from January 1, 2027, to December 31, 2027.
Samsung Electro-Mechanics said the deal is the largest among its MLCC long-term supply contracts (LTA) to date.
Samsung Electro-Mechanics announced on the 1st that it has signed a supply contract for AI server MLCCs with a global large company. The contract is worth about KRW 1.0722 trillion, or USD 780 million.
The contract runs from January 1, 2027, to December 31, 2027, making it a one-year deal. The customer’s name was not disclosed.
Samsung Electro-Mechanics said the deal is the largest among its MLCC long-term supply contracts (LTA) to date. The KRW 1 trillion-range contract with a major customer reflects the company’s efforts to accelerate its expansion in the AI infrastructure market.
Samsung Electro-Mechanics said the deal underscores recognition of its design technology for AI server MLCCs. It added that its product reliability in high-temperature, high-voltage environments, as well as its production capacity to meet demand from major customers and its quality control capabilities to do so, were also recognized.
As Samsung Electro-Mechanics pushes to shift its MLCC business portfolio toward high-value-added AI-related products, it has been signing long-term supply contracts for silicon capacitors and AI server MLCCs since May. The value of those long-term supply contracts is about KRW 2.25 trillion, and Samsung Electro-Mechanics is seeking to secure a stable demand base through such agreements.
Including this deal, Samsung Electro-Mechanics has signed MLCC long-term supply contracts with more than 10 global companies. It is also in additional discussions on MLCC long-term supply contracts with multiple global companies, raising the possibility of further expansion in AI server MLCC supply.
This trend aligns with growth prospects for the AI data center market and expectations of rapid expansion in MLCC demand. AI servers are known to use more than 10 times as many MLCCs as conventional servers, and expanded investment in AI data centers is expected to boost demand for high-capacity, high-reliability MLCCs.
Goldman Sachs projected that the AI server MLCC market will grow from USD 1.4 billion in 2025 to USD 5.8 billion in 2030. It put the compound annual growth rate at about 34%.
Continued expansion in investment in AI servers and data centers was cited as the background for this growth. Accordingly, the outlook calls for rising demand for high-value-added MLCCs, which is expected to have a positive impact on Samsung Electro-Mechanics' earnings and its business competitiveness.
Samsung Electro-Mechanics remains among the global leaders with more than 40% market share in AI server MLCCs. A company official said the deal reflects global customers' recognition of Samsung Electro-Mechanics' technology and supply stability, and added that the company aims to solidify its leadership in the AI market by expanding supply of high-reliability MLCCs for AI servers.
Source: TECHWORLD · Park Kyu-chan
Original: https://www.epnc.co.kr/news/articleView.html?idxno=406325
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Source: TECHWORLD
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