Samsung Electro-Mechanics has won a large order for AI server components. The company said on Monday it signed a 450 billion won supply contract with a global big tech company for multilayer ceramic capacitors (MLCCs) for AI servers. The contract runs for one year from Jan. 1 to Dec. 31, 2027.

MLCCs store electricity and supply it stably to semiconductors while removing signal interference, and demand is surging in AI server environments. That is because momentary power fluctuations in AI servers directly lead to performance degradation. The number installed is also more than 10 times that of general servers. More than 20,000 are used per GPU, and as many as 600,000 can be used per server rack.

MLCCs for AI servers require durability to withstand high-temperature (105 degrees Celsius or higher) and high-voltage (100V) environments, as well as ultra-compact specifications that can be densely placed on server boards where space is limited. These technical requirements mean only a small number of companies can supply them even in the global market. Samsung Electro-Mechanics has a 25 percent share of the overall MLCC market, but it has secured more than 40 percent in products for AI servers, the company said.

The industry views such a large supply deal as an unusual case. Samsung Electro-Mechanics said the contract shows a shortage of AI-server MLCCs and strong demand. It is in talks with global customers and major big tech companies to expand supply after 2027. It said it plans to raise the share of high value-added products such as AI and automotive electronics.

Chang Duck-hyun (장덕현), president of Samsung Electro-Mechanics, said, "This contract is the result of our MLCC technology being recognized as a key component in the AI era." He said, "We will develop next-generation leading-edge products tailored to customer needs ahead of others and secure the market."