Samsung Electro-Mechanics wins 879.3 bln-won AI server capacitor supply deal

By Kim Han-joo

SEOUL, Oct. 30 (Yonhap) -- Samsung Electro-Mechanics Co. said Friday it has signed an 879.3 billion-won (US$659.3 million) contract to supply multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers to a global company.

The electronic components unit of Samsung Electronics Co. said the contract runs for one year starting Dec. 21.

The company did not disclose the customer, citing a confidentiality agreement.

The deal marks Samsung Electro-Mechanics' eighth long-term supply agreement announced this year and the second-largest MLCC supply contract disclosed by the company.

The company has signed a series of long-term supply agreements worth a combined 5.18 trillion won in 2026, covering silicon capacitors, MLCCs and inductors for AI servers.

Samsung Electro-Mechanics said it has signed or is in negotiations for long-term supply agreements covering high-value-added MLCCs with around 50 customers.

It expects such agreements to account for more than half of its MLCC revenue next year.

MLCCs are key electronic components that regulate and stabilize electrical current in circuits. They are widely used in smartphones, personal computers, automotive electronics and AI servers.

MLCCs designed for AI servers require more advanced manufacturing technology than those used in mobile devices.

According to Goldman Sachs, the global AI server MLCC market is expected to grow at an annual average rate of about 34 percent, from $1.4 billion in 2025 to $5.8 billion in 2030.

Samsung Electro-Mechanics is maintaining a leading position in the global AI server MLCC market, with a market share of more than 40 percent, according to the company.

khj@yna.co.kr
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