Samsung Electro-Mechanics secures 1.07 trillion KRW AI server MLCC contract

Samsung Electro-Mechanics has secured a massive long-term supply contract worth 1.0722 trillion KRW to provide Multi-Layer Ceramic Capacitors (MLCC) for AI servers to a major global corporation. The contract is scheduled to run from January 1, 2027, to December 31, 2027.

This agreement is part of a broader trend of long-term supply agreements (LTA) for the company. Including previous disclosures for 2027, the total scale of large-scale supply contracts for that year has reached approximately 1.8213 trillion KRW. Samsung Electro-Mechanics has been engaging with roughly 10 global customers to secure long-term orders, driven by the rapid expansion of AI data centers and server investments.

AI server MLCCs require higher capacity and reliability than standard components because they must operate stably in high-temperature and high-voltage environments. Due to these technical requirements, the market is characterized by limited suppliers, primarily Samsung Electro-Mechanics and Japan's Murata. Industry analysts suggest the AI server MLCC market could grow from $1.4 billion in 2025 to $5.8 billion by 2030, representing a compound annual growth rate of approximately 34%.