Samsung Electro-Mechanics said on 30 October that it had signed an 879.3 billion won ($659.3 million) contract to supply capacitors for AI servers, its second-largest disclosed MLCC supply contract, Yonhap reported. The electronic components unit of Samsung Electronics will supply a global company under the one-year agreement. Samsung Electro-Mechanics withheld the customer’s name under a confidentiality agreement, according to Yonhap.
Key points
- The 879.3 billion won contract runs from 21 December 2026 to 21 December 2027.
- It is Samsung Electro-Mechanics’ eighth disclosed long-term supply agreement of 2026.
- The company’s disclosed long-term agreements this year total 5.18 trillion won.
- Samsung Electro-Mechanics expects long-term agreements to provide more than half of its MLCC revenue in 2027.
A one-year agreement from 21 December
The contract covers multilayer ceramic capacitors, or MLCCs, and runs from 21 December 2026 to 21 December 2027. It is the eighth long-term supply agreement Samsung Electro-Mechanics has disclosed this year and the second-largest disclosed contract in its MLCC business. The company has announced agreements for several types of AI server components in 2026.
Those disclosed agreements have a combined value of 5.18 trillion won. They cover silicon capacitors, MLCCs, inductors and flip-chip ball grid arrays, Chosunbiz reported. The company began signing the series of deals in May, according to the publication. The newly announced contract adds another AI server component order to that portfolio.
An earlier AI Affairs report put Samsung Electro-Mechanics’ AI component agreements at 3.6 trillion won. The 5.18 trillion won figure covers agreements the company had disclosed by 30 October, including the latest MLCC contract.
Samsung Electro-Mechanics says it has signed, or is negotiating, long-term supply agreements with around 50 customers. It expects agreements of this kind to account for more than half its MLCC revenue in 2027. That expectation concerns revenue from the agreements, while the customer figure includes companies still in negotiations.
AI server MLCC requirements raise capacity demands
MLCCs regulate and stabilise electrical current in circuits. They are used in smartphones, personal computers and automotive electronics as well as AI servers. Producing them for AI servers requires more advanced manufacturing technology than producing those used in mobile devices, Yonhap reported.
As graphics processing units and application-specific integrated circuits incorporate more dies and consume more power, Samsung Electro-Mechanics projects that the MLCC capacity needed for a stable power supply will increase by about twofold each year, according to Chosunbiz. MLCCs for AI servers must also meet requirements for high capacity, small size and reliability at high temperatures and voltages, the publication reported.
A Samsung Electro-Mechanics official told Chosunbiz that demand was expanding for MLCCs designed to meet those requirements. The official said the company would seek to strengthen its position through its manufacturing technology and supply capacity. Its latest contract commits it to supply components for a full year.
Samsung Electro-Mechanics has also reported higher profit alongside its AI component sales. AI Affairs reported that third-quarter profit rose 165.5% as AI component sales grew. The new supply agreement covers deliveries beginning after that quarter.
Goldman Sachs projects 34% annual market growth
Goldman Sachs projects that the global market for AI server MLCCs will grow at an annual average rate of about 34%, from $1.4 billion in 2025 to $5.8 billion in 2030. Samsung Electro-Mechanics says it holds more than 40% of that market.
