Samsung Electro-Mechanics has signed a large-scale supply contract for multilayer ceramic capacitors (MLCCs) used in artificial intelligence (AI) servers, underscoring growing demand for advanced passive components in global data center expansion.
The company disclosed on June 30 that it had secured a contract worth approximately KRW 450 billion (about USD 330 million) with a global big tech customer. The supply period runs from January 1, 2027, to December 31, 2027.
MLCCs are essential electronic components that stabilize power delivery to semiconductors by storing and supplying electricity as needed. They also help reduce electrical noise and improve the stability and performance of electronic systems. In AI server environments, where computing loads fluctuate rapidly, these functions are increasingly critical.
As AI workloads intensify, demand for MLCCs has surged sharply. Industry estimates suggest that AI servers can require more than ten times the number of MLCCs compared to conventional servers due to higher power density and increased computing demands.
However, AI server-grade MLCCs are considered technically challenging to produce. They must be ultra-compact while maintaining high capacity and reliability, and must also withstand harsh operating conditions such as high temperatures (often exceeding 105°C), high voltage environments, and mechanical stress caused by thermal expansion and vibration.
Samsung Electro-Mechanics currently holds roughly 25% of the global MLCC market. In the higher-value AI server segment, the company is believed to command over 40% share, reflecting its strong position in high-performance and high-reliability components.
A company official said the contract reflects both rising demand and tight supply conditions in the AI server MLCC market, noting that the agreement demonstrates the company’s differentiated competitiveness in ultra-small, high-capacity, and high-reliability components.
The company also said it is in ongoing discussions with global clients and major technology firms to expand supply beyond 2027, particularly in high-value areas such as AI infrastructure and automotive electronics.
Chairman Jang Deok-hyun of Jang Deok-hyun said the deal confirms the company’s technological leadership in MLCCs as a core component in the AI era, adding that it will continue to develop next-generation products ahead of market demand to strengthen its global position.
Industry observers view the contract as further evidence that the AI boom is expanding beyond semiconductors into the broader electronic components ecosystem, driving sustained investment across the AI hardware supply chain.
