Samsung Electro-Mechanics said on Sept. 29 it has agreed to supply MLCCs and inductors worth about 290 billion won ($210 million) to a large global company. It is the fifth long-term supply contract disclosed this year. The supply period is one year from Jan. 1, 2027 to Dec. 31, 2027.

An MLCC is a passive component that regulates electric current to flow steadily in electronic circuits and prevents signal interference between parts. AI servers and data centres require stable power supply and the ability to respond to fluctuations in power. For this reason, high-capacity and high-reliability MLCCs are required, the company said.

An inductor is a passive component that stabilises power supply in response to changes in current and reduces noise during power conversion. As AI server performance improves, power consumption is also increasing. Inductors for power supply circuits require high-current and high-efficiency characteristics. Samsung Electro-Mechanics said it is developing high-reliability inductors that can handle high currents and is expanding supply along with MLCCs.

The company said the contract was reached on the strength of its MLCC and inductor technology, product reliability and production capacity to meet customer demand. Samsung Electro-Mechanics has long-term MLCC supply contracts with about 10 global companies. It is also discussing additional contracts with other global companies.

Samsung Electro-Mechanics' long-term supply contracts signed this year total about 3.6 trillion won, based on disclosed filings, including silicon capacitors, MLCCs for AI servers and inductors. The company said it aims to secure a demand base through long-term supply contracts and accelerate a portfolio shift toward high value-added products.

A Samsung Electro-Mechanics official said, "As technology in the global AI market advances, the required level of MLCC performance and reliability is also increasing." The official added, "Based on differentiated technology and stable supply capabilities, we are expanding cooperation with global customers."