Samsung Electro-Mechanics Expands AI Server Component Orders... Supplies KRW 290 Billion in MLCCs and Inductors

Samsung Electro-Mechanics has signed a supply contract for AI server MLCCs and inductors with a large global company. According to a filing on the 29th, the contract is worth about USD 210 million, or about KRW 290 billion. This is Samsung Electro-Mechanics' fifth long-term supply contract disclosed this year.

The contract period runs from January 1, 2027, to December 31, 2027, or 1 year. The cumulative value of long-term supply contracts signed this year, including this deal, stands at about KRW 3.6 trillion. The cumulative total covers contracts related to silicon capacitors, AI server MLCCs, and inductors.

Samsung Electro-Mechanics has already signed long-term MLCC supply contracts with more than 10 global companies. It is also in talks on additional long-term supply contracts with other global firms.

Samsung Electro-Mechanics is pursuing a strategy to expand its long-term supply base in response to market changes and customer demand.

As AI servers become more powerful, power consumption is rising, and so are the performance and reliability requirements for passive components used in server power supply circuits. As a result, the importance of components that support power stability and the ability to respond to power fluctuations is growing in high-end applications such as AI servers and data centers.

MLCCs are core passive components in electronic circuits, and they function to regulate current stably and reduce signal interference between electronic parts. In particular, in high-end applications such as AI servers and data centers, demand is growing for high-capacity, high-reliability MLCCs for stable power supply and response to power fluctuations.

Inductors control changes in current, stabilize power supply, and reduce noise in the power conversion process. As power consumption in AI servers increases, demand is also expanding for high-current, high-efficiency, high-reliability inductors.

To respond to the power characteristics of AI servers, Samsung Electro-Mechanics is pursuing greater capacity and more advanced high-reliability technologies for MLCCs, while strengthening the competitiveness of high-current, high-efficiency, high-reliability products in inductors.

Samsung Electro-Mechanics is expanding supplies centered on high-value-added applications such as AI servers and data centers. The contract was finalized based on the company's MLCC and inductor technology, product reliability, and production capabilities that can meet demand from global clients.

The AI server MLCC market is growing rapidly. According to Samsung Electro-Mechanics, AI servers are equipped with more than 10 times as many MLCCs as regular servers. The company expects demand for related MLCCs to rise as investment in AI data centers expands.

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. The annual average growth rate was estimated at about 34%.

Amid this market growth, Samsung Electro-Mechanics has secured more than a 40% share of the AI server MLCC market. On that basis, it is maintaining a leading global position in the AI server MLCC market. A Samsung Electro-Mechanics official said that as technologies in the global AI market become more advanced, the performance and reliability requirements for MLCCs are rising, and that the company is expanding cooperation with global clients based on differentiated technology and stable supply capabilities.

Source: TECHWORLD · Park Gyu-chan
Original: https://www.epnc.co.kr/news/articleView.html?idxno=407486

References

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