Samsung Electro-Mechanics said Friday that it has signed a supply contract worth approximately 879.3 billion won for multilayer ceramic capacitors (MLCCs) for AI servers with a major global company.
The contract period is one year, starting from December 21, 2026. This is the second-largest MLCC long-term contract disclosed this year and the eighth long-term supply agreement.
Since May, the company has recorded cumulative orders of approximately 5.18 trillion won based on disclosures this year, including key components such as silicon capacitors, MLCCs for AI servers, inductors, and flip-chip ball grid arrays (FC-BGA).
It has completed or is currently negotiating long-term supply contracts with more than 50 customers. Through these agreements, the company aims to build a stable supply system and strengthen its business structure centered on high-value-added products, projecting that it will secure more than half of its MLCC revenue next year through long-term supply contracts.
This shift toward a business structure centered on high-value-added long-term contracts is also reflected in its earnings growth. In the third quarter of this year, Samsung Electro-Mechanics' Component Solutions division recorded revenue of 1.883 trillion won, a 36% increase from the same period last year, driven by strong sales of products for AI data centers, including servers, networks, and power systems.
The outlook ahead is also positive. The required capacity for MLCCs in AI servers is trending to increase by approximately two-fold each year due to performance improvements in core semiconductors such as graphics processing units (GPUs) and application-specific integrated circuits (ASICs).
In markets with high barriers to entry, such as high-capacity ultra-small form factors and high-temperature/high-voltage applications, Samsung Electro-Mechanics maintains its position as a global leader with a market share of over 40%. According to Goldman Sachs, the MLCC market for AI servers is projected to grow at an annual average rate of approximately 34%, expanding from $1.4 billion in 2025 to $5.8 billion by 2030.
A company official said, "Demand for high-performance and highly reliable MLCCs is expanding with the growth of the AI industry. Based on our differentiated technological capabilities and stable supply capacity, we will continue to strengthen our competitiveness in the MLCC market for AI servers."
in INDUSTRY
