[Edaily Reporter Choi Oh-hyun ] Samsung Electro-Mechanics has signed a 285.6 billion won supply contract for multilayer ceramic capacitors (MLCCs) with a major global corporation. As demand for high-performance MLCCs is rapidly increasing due to expanding investments in artificial intelligence (AI) servers and data centers, Samsung Electro-Mechanics is securing a series of large-scale long-term supply agreements (LTAs).

Samsung Electro-Mechanics announced on the 6th that it had signed an MLCC supply contract worth $210.24 million (approximately 285.61104 billion won) with a major global corporation. This amount represents 2.5% of the company’s consolidated revenue of 11.3145 trillion won last year. The contract term is one year, from January 1 to December 31 of next year. The identity of the contracting party was not disclosed for reasons of business confidentiality.

MLCCs are key components that regulate the stable flow of current in electronic circuits and prevent electromagnetic interference between components. In particular, MLCCs for AI servers are considered high-value-added products because they are installed in greater quantities than in general servers and require high reliability in high-temperature and high-voltage environments. As investment in AI data centers expands, demand for long-term contracts to secure stable component supply chains is increasing, particularly among global big tech companies and semiconductor manufacturers. During its second-quarter earnings announcement, Samsung Electro-Mechanics revealed that it had signed long-term MLCC supply contracts with about 10 global customers.

In May, the company signed a 1.557 trillion won contract to supply silicon capacitors for semiconductors to a major global corporation known as a U.S. “Big Tech” firm. The supply period runs from 2027 to 2028. In June, the company signed a 454 billion won MLCC supply contract with a company believed to be a U.S. cloud service provider, and in July, it added a 295.1 billion won MLCC supply contract for AI servers with a company believed to be a global server assembler. The supply period for both contracts is next year.

Last month, the company secured a supply contract worth 1.0722 trillion won for MLCCs used in AI servers, breaking its own record for the largest-ever order in terms of MLCCs. This is the largest long-term MLCC supply contract in Samsung Electro-Mechanics’ history. At the time, Samsung Electro-Mechanics announced that the total value of its long-term supply contracts for silicon capacitors and MLCCs for AI servers, dating back to May, had reached 3.32 trillion won.

Subsequently, on the 29th of last month, the company announced a supply contract worth approximately 285 billion won for MLCCs and inductors combined; when this latest contract is included, the cumulative value of major supply contracts announced this year is estimated to reach approximately 4 trillion won.

The growing demand for AI components is also reflected in the company’s financial results. Samsung Electro-Mechanics posted second-quarter revenue of 3.4572 trillion won and operating profit of 440.4 billion won this year. These figures represent increases of 24% and 107%, respectively, compared to the same period last year.

The rise in earnings was driven by expanded supply of MLCCs for data centers—including AI servers and networks—as well as flip-chip ball grid array (FC-BGA) components for AI accelerators and server central processing units (CPUs) supplied to global big tech companies. In particular, revenue in the Components Division, which handles MLCCs, reached 1.6494 trillion won, a 29% increase from the same period last year.

Forecasts suggest that earnings will take another leap forward in the third quarter. According to financial information provider FnGuide, Samsung Electro-Mechanics’ third-quarter revenue is projected to reach approximately 3.7951 trillion won, with operating profit expected to be 621.4 billion won.

Samsung Electro-Mechanics has also begun expanding its production capacity to meet the growing demand for AI components. The company’s strategy is to cultivate its AI data center component business as a new growth engine by simultaneously securing long-term supply contracts and expanding production capacity, with a focus on MLCCs and FC-BGAs for AI servers. FC-BGA is a high-specification semiconductor package substrate that electrically connects high-performance semiconductor chips, such as CPUs and GPUs, to the motherboard to transmit signals and power.

Last month, Samsung Electro-Mechanics decided to invest 4.27 trillion won to expand high-performance FC-BGA production capacity at its Sejong plant. Its Vietnamese manufacturing subsidiary also decided to invest 2.51 trillion won to expand its package substrate production facilities. Combined, the investments in Sejong and Vietnam total 6.78 trillion won, marking Samsung Electro-Mechanics’ largest-ever investment for a single product.