Samsung Electro-Mechanics is strengthening its position in the rapidly expanding AI infrastructure market after securing a major long-term supply agreement for multilayer ceramic capacitors (MLCCs) used in AI servers.
The South Korean electronic components maker said Tuesday that it has signed a contract worth approximately 290 billion won ($200 million) with a major global customer. The agreement covers supplies from January through December 2027.
The deal marks the company’s sixth long-term supply agreement disclosed this year and adds to a series of contracts targeting components used in next-generation computing infrastructure.
MLCCs play a critical role in electronic systems by stabilizing power supplied to semiconductors and reducing signal interference between components. AI servers place particularly demanding requirements on these components because they operate continuously under high-temperature and high-voltage conditions.
As AI workloads become increasingly compute-intensive, the amount of MLCCs installed in servers is also rising sharply. An AI server rack can require up to 600,000 MLCCs, more than 10 times the amount used in conventional servers, according to Samsung Electro-Mechanics.
The company has been focusing on high-capacity, high-reliability MLCCs designed for AI servers while expanding production capabilities to accommodate growing demand from global customers.
Samsung Electro-Mechanics has signed long-term agreements covering MLCCs, silicon capacitors and inductors with multiple multinational customers. Since May, the company has announced contracts totaling about 3.9 trillion won, according to its regulatory disclosures.
The agreements are expected to provide a more stable demand base while helping Samsung Electro-Mechanics accelerate its shift toward higher-value electronic components.
The AI server MLCC market is also expected to expand rapidly. Goldman Sachs estimates that the market will grow from $1.4 billion in 2025 to $5.8 billion by 2030, representing an annual growth rate of roughly 34%.
Samsung Electro-Mechanics currently holds more than 40% of the global AI server MLCC market, putting it among the leading suppliers as hyperscalers and data center operators continue to increase AI infrastructure spending.
The company said it plans to pursue additional supply opportunities with global customers while expanding the share of AI-focused products in its portfolio.
“As the AI market continues to grow, customers are demanding increasingly sophisticated MLCCs,” a Samsung Electro-Mechanics official said. “We will strengthen our competitiveness in the global market by expanding AI-related products based on differentiated technology and reliable supply capabilities.”
