[Edaily Reporter JAEMIN SONG ] SamsungElectroMechanics has secured a supply contract worth over 1 trillion won for multilayer ceramic capacitors (MLCCs) used in artificial intelligence (AI) servers. This marks the largest-ever long-term MLCC supply contract. As Big Tech companies continue to invest in AI data centers, the company is securing a stable supply through long-term contracts and rapidly shifting its business structure toward high-value-added AI components.

SamsungElectroMechanics announced on the 1st that it has signed a contract worth 1.0722 trillion won ($780 million) with a major global corporation to supply MLCCs for AI servers. The contract period is one year, from January 1 to December 31, 2027. The identity of the contracting party was not disclosed.

This contract is the largest long-term MLCC supply contract SamsungElectroMechanics has ever signed. Including this client, SamsungElectroMechanics has entered into long-term supply agreements (LTAs) for MLCCs with about 10 global companies. The company is also in discussions regarding additional contracts with several other global firms.

Since last May, SamsungElectroMechanics has successively signed long-term supply contracts worth approximately 2.25 trillion won for silicon capacitors and MLCCs for AI servers. The company’s strategy is to secure a stable demand base through these long-term contracts while expanding the supply share of AI server products, which are more profitable than general-purpose products.

MLCCs are key components that regulate the stable flow of current in electronic circuits and prevent signal interference between components. AI servers require more than 10 times the number of MLCCs compared to general-purpose servers. As the power consumption of high-performance AI accelerators increases, there is a growing demand for high-capacity, high-reliability MLCCs capable of withstanding 24-hour operation in high-temperature and high-voltage environments. Due to the high technical complexity, only a limited number of manufacturers are capable of producing them.

Expanding investment in AI data centers is also affecting the supply and demand of MLCCs, as well as their prices. Market research firm TrendForce forecasts that SamsungElectroMechanics will raise prices for general-purpose consumer MLCCs by an average of 25–30% and for high-specification products used in AI servers by an average of 10–20% in the fourth quarter of this year for its original equipment manufacturer (OEM) and original design manufacturer (ODM) customers.

This is interpreted as a strategy to prioritize the production capacity freed up by adjusting orders for general-purpose products toward high-value-added products for AI servers and automotive applications. With inventory levels for major MLCC products reportedly falling below 30 days, SamsungElectroMechanics’ MLCC capacity utilization rate is estimated to exceed 95%.

The increase in demand for AI components is also leading to improved financial performance. SamsungElectroMechanics’ consolidated revenue for the second quarter of this year was 3.4572 trillion won, and operating profit was 440.4 billion won, up 24% and 107%, respectively, from the same period last year. Revenue for the Components Business Division, which handles MLCCs, rose 29% year-over-year to 1.6494 trillion won. Growth was driven by expanding sales of MLCCs for data centers—such as AI servers and networks—as well as automotive products.

According to Goldman Sachs, the MLCC market for AI servers is projected to grow at an average annual rate of approximately 34%, expanding from $1.4 billion in 2025 to $5.8 billion in 2030. SamsungElectroMechanics maintains its position as a global leader in this market, securing a market share of over 40%.

A SamsungElectroMechanics official stated, “This contract is a result of our global customers recognizing SamsungElectroMechanics’ technological capabilities and supply stability,” adding, “We will expand the supply of high-reliability MLCCs for AI servers to secure a firm leadership position in the AI market.”