Samsung Electro-Mechanics is expanding its presence in the fast-growing AI server component market after securing a long-term supply agreement worth about 290 billion won ($200 million) with a major global company.
The Korean electronic components maker said Monday that the agreement covers multilayer ceramic capacitors (MLCCs) and inductors for AI servers, with supplies scheduled from Jan. 1 through Dec. 31, 2027.
The deal marks the company’s fifth long-term supply contract disclosed this year, highlighting its push to build a more stable customer base for high-value passive components used in AI infrastructure.
AI servers require significantly greater power than conventional servers, increasing demand for components capable of handling high currents and maintaining stable power delivery under demanding operating conditions.
MLCCs play a key role in stabilizing electrical currents and suppressing signal interference in electronic circuits. In AI servers and data centers, manufacturers increasingly require high-capacitance and highly reliable MLCCs to support increasingly sophisticated power systems.
Inductors are also becoming more important as AI server power consumption rises. They help regulate current fluctuations and reduce noise during power conversion, making high-current and high-efficiency products increasingly important in server power-management systems.
Samsung Electro-Mechanics has been upgrading its MLCC and inductor technologies to address these requirements. The company is focusing on higher capacitance and reliability for MLCCs, while developing inductors with improved current-handling capabilities, efficiency and reliability.
The latest agreement is part of a broader expansion of long-term supply relationships. Samsung Electro-Mechanics currently has long-term MLCC supply agreements with more than 10 global companies and is in discussions with additional customers.
Including the latest deal, the company has secured roughly 3.6 trillion won in long-term supply contracts this year for silicon capacitors, AI server MLCCs and inductors, according to its regulatory disclosures.
Industry watchers say the growing number of long-term agreements reflects a broader shift in the passive-component market as AI infrastructure investment raises both the volume and technical specifications of components required in servers.
The shift is also strategically important for component manufacturers because higher-end AI server products can generate greater value than components used in conventional consumer electronics. Securing long-term contracts can also provide suppliers with greater visibility into future demand while strengthening relationships with major global customers.
Demand for AI server MLCCs is expected to expand rapidly as data center operators increase investments in AI computing infrastructure. According to Goldman Sachs, the global AI server MLCC market is projected to grow from $1.4 billion in 2025 to $5.8 billion in 2030, representing an average annual growth rate of about 34%.
Samsung Electro-Mechanics holds more than 40% of the global AI server MLCC market, according to the company, placing it among the leading suppliers.
As AI servers become more powerful and data centers scale up, the company is expected to continue shifting its component portfolio toward higher-capacity, higher-reliability products while expanding long-term partnerships with global customers.
