$782M! Samsung Electro-Mechanics Wins AI Server MLCC Deal

According to a regulatory filing submitted on September 1, Samsung Electro-Mechanics has secured a long-term contract worth KRW 1.07 trillion (approximately $782.23 million) to provide multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers.

The agreement was signed with a globally recognized company and covers the supply of MLCCs for AI server applications. The contract will run for one year, from January 1 through December 31, 2027.

MLCCs are essential passive components in electronic circuits, helping regulate current and reduce signal interference between components. The rapid expansion of AI computing is driving strong demand for MLCCs, particularly in data center infrastructure. AI servers are estimated to contain more than 10 times as many MLCCs as conventional servers, making them an increasingly important component in AI hardware.

As global investment in data centers continues to expand, the AI server MLCC market is also expected to grow rapidly. Goldman Sachs estimates that the global market for MLCCs used in AI servers will increase from approximately $1.4 billion in 2025 to $5.8 billion by 2030, representing a compound annual growth rate of about 34%.

Samsung Electro-Mechanics currently holds more than 40% of the AI server MLCC market, placing it among the leading companies in the sector. In addition to the latest agreement, the company has signed long-term cooperation agreements with more than a dozen global companies, further strengthening the stability of its revenue base.

Since May, Samsung Electro-Mechanics has secured AI server-related contracts covering silicon capacitors and MLCCs with a combined value of approximately KRW 2.25 trillion. The deals highlight the company's efforts to accelerate its shift from lower-margin products toward higher-value components driven by AI infrastructure demand.

The company's MLCC production lines are currently operating at more than 95% capacity utilization, approaching full production. Channel inventory has fallen below 30 days, while its book-to-bill ratio has reached 1.5, meaning new orders are 50% higher than shipments.

A Samsung Electro-Mechanics executive said the company will continue expanding its supply of highly reliable components for AI servers to strengthen its position in the rapidly growing market.