Samsung Electro-Mechanics announced on the 29th that it has signed a supply contract for multilayer ceramic capacitors (MLCCs) and inductors for artificial intelligence (AI) servers worth KRW 290 billion with global big tech companies. The contract period is one year, from January to December next year.

This contract is the fifth long-term agreement (LTA) Samsung Electro-Mechanics has signed this year. As a result, the cumulative size of LTAs for silicon capacitors and AI server MLCCs and inductors signed this year amounts to approximately KRW 3.6 trillion. Samsung Electro-Mechanics currently has long-term MLCC supply contracts with more than 10 global companies and is discussing additional agreements.

MLCCs, which regulate the stable flow of current in electronic circuits and prevent signal interference among electronic components, are used in virtually all electronic devices and are therefore referred to as the “rice of the electronics industry.” In particular, AI servers are equipped with more than 10 times as many MLCCs as general servers. Goldman Sachs forecasts that the AI server MLCC market will grow at an average annual rate of about 34%, from USD 1.4 billion last year to USD 5.8 billion in 2030. Samsung Electro-Mechanics holds a market share of more than 40% in this segment.

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