Samsung Electro-Mechanics said on Tuesday it signed a long-term supply agreement for silicon capacitors with a large global company. The contract is worth about 1.5 trillion won. The supply period runs for 2 years from Jan. 1, 2027 to Dec. 31, 2028.

Silicon capacitors are key parts installed inside high-performance semiconductor packages such as GPUs and high-bandwidth memory (HBM) for AI servers, helping stabilise power supply. They are designed with an ultra-thin structure based on silicon wafers. Compared with existing MLCCs, resistance (ESL/ESR) is more than 100 times lower, minimising signal loss generated in high-performance semiconductors. As AI semiconductors process rapidly increasing volumes of data, power consumption is rising. Packages for AI servers have larger areas and more layers than general PCs, making power supply stability and signal integrity key competitive strengths.

The contract is Samsung Electro-Mechanics' first large-scale supply achievement in the silicon capacitor business. The silicon capacitor market has been dominated by a small number of companies because technical barriers to entry are high and customer certification procedures are demanding. Samsung Electro-Mechanics entered the core supply chain for AI semiconductors based on ultra-fine processing capabilities built up in its MLCC and package substrate businesses, the company said.

Samsung Electro-Mechanics plans to diversify its customer base on the back of the deal. It aims to expand into high-performance computing fields such as autonomous driving systems and mobile devices, in addition to AI servers.

Chief Executive Jang Deok-hyeon (장덕현) said, "This contract will be an important milestone in strengthening Samsung Electro-Mechanics' position as a total solution supplier of key components in the AI era." He added, "We will expand our product lineup in the future to further strengthen cooperation with global customers."