As demand for AI server parts rises, Samsung Electro-Mechanics has secured an additional long-term supply contract worth 300 billion won with a global major customer. Samsung Electro-Mechanics said on Wednesday it signed a deal to supply MLCCs for AI servers to a global major company. The contract is worth about 300 billion won ($200 million), and the supply period is one year from Jan. 1 to Dec. 31, 2027.

MLCCs are key components that store electricity and then supply it stably to semiconductors while removing signal interference, and demand is surging in AI server environments. MLCCs for AI servers require more than 10 times the mounting volume of general servers, with up to 600,000 units per server rack. They must meet ultra-small, ultra-high-capacity designs as well as resistance to high temperatures and high voltages and bending strength, limiting the number of suppliers that can actually deliver them.

Samsung Electro-Mechanics has signed three large-scale long-term supply contracts in a row this year alone. In May, it signed a long-term supply contract worth about 1.5 trillion won for silicon capacitors with a global customer, and in June it signed an AI server MLCC supply contract worth about 450 billion won with a global big tech company. It is unusual in the industry for long-term MLCC supply contracts of this size to be concluded one after another, Samsung Electro-Mechanics said.

Samsung Electro-Mechanics is discussing mid- to long-term MLCC supply plans with multiple global customers. It said it plans to expand long-term supply contracts to secure a stable demand base for AI server MLCCs while accelerating a shift in its portfolio toward high value-added products.

Samsung Electro-Mechanics currently maintains a position among global leaders in the AI server MLCC market with a market share of more than 40 percent. Jang Deok-hyun (장덕현), president of Samsung Electro-Mechanics, said, "This contract is the result of our MLCC technology being recognized as a core component of AI infrastructure." He said, "Based on customer trust, we will lead the AI components market by developing next-generation leading-edge products and building a stable supply system."