Samsung Electro-Mechanics said on Tuesday it signed a supply contract with a major global company for multilayer ceramic capacitors, or MLCCs, used in artificial intelligence servers. The deal is worth about 1.0722 trillion won, or $772 million. The contract runs for 1 year from Jan. 1, 2027 to Dec. 31, 2027. Samsung Electro-Mechanics said it is its largest long-term MLCC supply contract to date.

MLCCs are key components that regulate current flow in electronic circuits and prevent signal interference between parts. MLCCs for AI servers must withstand 24-hour operation in high-temperature, high-voltage environments, requiring both high capacity and high reliability. The technical difficulty is high and only a small number of companies can produce them. The company said it won the contract after being recognized for design technology, product reliability, and production and quality management capabilities that respond to global customer demand.

Samsung Electro-Mechanics has signed long-term MLCC supply contracts with about 10 global companies, including this deal. Long-term supply contracts set volume and prices in advance for a fixed period, helping secure stable demand. Samsung Electro-Mechanics is also discussing additional contracts with multiple global companies and plans to respond actively.

Since May, it has secured a stable demand base by consecutively signing long-term supply contracts worth about 2.25 trillion won in total for silicon capacitors and MLCCs for AI servers. Amid these moves, Samsung Electro-Mechanics is maintaining a market share of more than 40 percent in the AI server MLCC market and remains among the global leaders.

MLCCs for AI servers are installed in quantities more than 10 times those in general servers, and demand is expected to rise quickly as data center investment expands. Goldman Sachs projected the AI server MLCC market will grow at an average annual rate of about 34 percent, to $5.8 billion in 2030 from $1.4 billion in 2025.

A Samsung Electro-Mechanics official said, "This contract is the result of global customers recognizing Samsung Electro-Mechanics' technological capabilities and supply stability." The official added, "We will expand the supply of high-reliability MLCCs for AI servers and secure solid leadership in the AI market."