Samsung Electro-Mechanics has secured its largest-ever long-term multilayer ceramic capacitor (MLCC) supply agreement, strengthening its position in the rapidly expanding AI server component market.
The company said Sept. 1 that it signed a one-year contract worth approximately 1.0722 trillion won with a major global corporation to supply MLCCs for AI servers. The agreement runs from Jan. 1 through Dec. 31, 2027.
The contract represents the largest long-term MLCC supply deal in Samsung Electro-Mechanics’ history. The company said the agreement reflects growing demand from global technology companies for high-performance components capable of operating reliably in demanding AI data center environments.
MLCCs are essential electronic components that regulate current flow within circuits and help reduce signal interference between components. Products used in AI servers face significantly tougher operating conditions than conventional MLCCs, requiring high capacitance and high reliability while continuously operating under elevated temperatures and voltages.
Because of these requirements, AI server MLCCs are considered a high-end segment that requires advanced design and manufacturing capabilities. Samsung Electro-Mechanics said its expertise in MLCC design, reliability under high-temperature and high-voltage conditions, as well as its global production and quality-control infrastructure helped secure the latest contract.
The company is also expanding its customer base through long-term supply agreements. Including the latest deal, Samsung Electro-Mechanics has signed long-term agreements with more than 10 global companies. It is also in discussions with additional multinational customers and plans to actively pursue further opportunities.
Samsung Electro-Mechanics has accelerated its shift toward high-value components by signing a series of major long-term supply contracts this year. Since May, the company has secured agreements worth a combined approximately 2.25 trillion won covering silicon capacitors and AI server MLCCs, establishing a more stable demand base for its advanced component portfolio.
AI server demand is expected to drive structural growth in the MLCC market. AI servers require more MLCCs than conventional servers, with the amount installed per server estimated to be more than 10 times higher. As investment in AI data centers expands worldwide, demand for high-capacity, high-reliability MLCCs is expected to rise accordingly.
According to Goldman Sachs, the global AI server MLCC market is projected to grow from approximately $1.4 billion in 2025 to $5.8 billion by 2030, representing an annual average growth rate of about 34%.
Samsung Electro-Mechanics currently holds more than 40% of the global AI server MLCC market, maintaining a leading position in the sector. The company expects the latest supply agreement to further reinforce its presence as demand shifts toward high-performance components for AI infrastructure.
A Samsung Electro-Mechanics official said the latest contract demonstrates that global customers recognize the company’s technological capabilities and supply stability.
“We will continue expanding the supply of high-reliability MLCCs for AI servers and strengthen our leadership in the rapidly growing AI market,” the official said.
