Samsung Electro-Mechanics wins W290b AI server MLCC deal in latest long-term contract

Samsung Electro-Mechanics announced Tuesday that it will supply 290 billion won ($213 million) worth of multilayer ceramic capacitors (MLCCs) for AI servers to a major global company from January through December next year. It is the company's sixth long-term supply contract disclosure this year.

Samsung Electro-Mechanics has been signing a series of long-term supply agreements (LTAs) with more than 10 global companies this year. Since May, the cumulative value of long-term contracts covering silicon capacitors, AI server MLCCs and inductors has reached approximately 3.9 trillion won.

The latest contract runs from Jan. 1 to Dec. 31, 2027. Through these agreements, the company is securing a stable demand base and accelerating a shift toward a higher-value-added product portfolio.

MLCCs are key components that store electricity and deliver it steadily to semiconductors while blocking signal interference between parts. MLCCs for AI servers must withstand continuous 24-hour operation in high-temperature, high-voltage environments, and must therefore meet stringent reliability standards covering ultra-compact size, ultra-high capacitance, heat and voltage tolerance, and bending strength.

Samsung Electro-Mechanics produces AI server MLCCs — components with high technological barriers to entry — on a stable basis to meet growing demand from global customers.

AI server MLCCs require roughly 10 times more units per server than conventional servers, limiting the number of suppliers capable of meeting that demand. Samsung Electro-Mechanics holds more than 40 percent of the AI server MLCC market and is in talks with multiple global companies on additional supply contracts.

Goldman Sachs projects the AI server MLCC market will grow from $1.4 billion in 2025 to $5.8 billion in 2030, a compound annual growth rate of about 34 percent.

"Customer demand for high-performance MLCCs continues to rise alongside the growth of the AI market," a Samsung Electro-Mechanics official said. "We will expand the share of AI MLCC products and further strengthen our competitiveness in the global market, backed by differentiated technology and a stable supply."