Samsung Electro-Mechanics Wins KRW 290 Billion AI Server MLCC Order, Long-Term Contracts Top KRW 3.9 Trillion
TECHWORLD ·
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Samsung Electro-Mechanics announced on the 6th that it has signed a supply contract for MLCC for AI servers with a major global company.
The contract is worth about KRW 290 billion, and the contract period runs from January 1, 2027, to December 31, 2027, for one year.
With this deal, Samsung Electro-Mechanics' long-term supply contracts disclosed this year have reached six, and the cumulative value has risen to about KRW 3.9 trillion.
Samsung Electro-Mechanics announced on the 6th that it has signed a supply contract for multilayer ceramic capacitors (MLCC) for AI servers with a major global company. The contract is worth about KRW 290 billion, equivalent to about USD 210 million. The contract period runs from January 1, 2027, to December 31, 2027, for one year.
The deal marks Samsung Electro-Mechanics' sixth long-term supply contract (LTA) disclosed this year. Since May, Samsung Electro-Mechanics has consecutively signed long-term supply contracts centered on silicon capacitors, MLCC for AI servers, and inductors.
As a result, the cumulative value of these long-term supply contracts has risen to about KRW 3.9 trillion. With this deal, Samsung Electro-Mechanics is strengthening its push into the AI server components market.
Through long-term supply contracts, Samsung Electro-Mechanics is securing a stable demand base. It is also accelerating its transition to a business portfolio centered on high-value-added products.
MLCC is a core passive component that stores electricity and supplies it stably when needed, supports the operation of semiconductors and various other components, and suppresses signal interference between components. MLCCs for AI servers must meet higher performance requirements because they must operate for long periods in environments with higher power consumption and heat generation than conventional servers. Accordingly, AI server MLCCs require both high capacity and high reliability, and must also meet reliability standards such as stability in high-temperature and high-voltage environments, as well as bending strength, along with ultra-small and ultra-high-capacity characteristics.
The number of MLCCs used in AI servers exceeds that of conventional servers by more than 10 times, and as many as 600,000 are used on a server rack basis. As the number of mounted components rises sharply, the AI server MLCC market is showing high technological barriers, and only a limited number of companies can supply them stably.
Based on its high-capacity and high-reliability MLCC technology and stable production capabilities, Samsung Electro-Mechanics is responding to rising AI server-related demand from global customers. It is also expanding supply to major global clients and strengthening its position in the AI server MLCC market.
As AI infrastructure investment expands, the AI server MLCC market is also expected to grow. Goldman Sachs estimated that the AI server MLCC market will expand from USD 1.4 billion in 2025 to USD 5.8 billion in 2030, and projected a compound annual growth rate of about 34%.
Amid these growth prospects, Samsung Electro-Mechanics said its current share in the AI server MLCC market exceeds 40%. Based on this, the company said it is maintaining a leading global position.
Samsung Electro-Mechanics has signed long-term MLCC supply contracts with multiple global companies and is actively responding to discussions on additional supply deals. It is also pursuing a strategy to expand the share of high-value-added MLCC products for AI use and strengthen global competitiveness in line with the expansion of the AI market.
A Samsung Electro-Mechanics official said that customer demand for high-performance MLCCs continues to rise alongside the growth of the AI market. The official added that the company plans to expand the share of MLCC products for AI use based on differentiated technological capabilities and stable supply, while further strengthening its competitiveness in the global market.
Source: TECHWORLD · Park Gyu-chan
Original: https://www.epnc.co.kr/news/articleView.html?idxno=407814
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Source: TECHWORLD
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