Secured orders from over 10 global companies “Boosting profitability by focusing on high-margin products”
The Samsung Group flag flutters in the wind at Samsung Electronics’ headquarters in Seocho-gu, Seoul. News1
Samsung Electro-Mechanics has signed a KRW 1 trillion-level supply contract for multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers with a global conglomerate. This contract is the largest single MLCC supply deal ever concluded by Samsung Electro-Mechanics, and on the back of expanding global investment in AI data center infrastructure, the share of its AI-focused MLCC business is increasing.
On the 1st, Samsung Electro-Mechanics announced in a regulatory filing that it had signed a long-term agreement (LTA) worth approximately KRW 1,072.2 billion (USD 780 million) to supply MLCCs for AI servers to a global large enterprise. The supply period is one year, from January 1 to December 31 next year. Due to confidentiality provisions, the customer’s name was not disclosed, but the industry views it as one of the global AI semiconductor companies.
MLCCs are components that stably regulate current flow within electronic circuits and prevent signal interference between parts. Among these, AI server MLCCs are used in quantities more than 10 times greater than those for general servers. Because they must withstand 24-hour operation in high-temperature, high-voltage environments, the technological barriers are high and only a small number of companies can produce them.
Including this customer, Samsung Electro-Mechanics has long-term supply contracts in place with around 10 global large enterprises. In particular, since May it has successively secured orders totaling KRW 3,320 billion in the silicon capacitor and AI server MLCC segments. Through these large-scale long-term contracts, the company plans to solidify a stable demand base and enhance profitability by focusing on high-margin products.
Demand for high-specification MLCCs is expected to increase over the long term with the expansion of AI data centers. According to global investment bank Goldman Sachs, the AI server MLCC market is projected to grow at an average annual rate of about 34%, from USD 1.4 billion (approximately KRW 1,924.5 billion) in 2025 to USD 5.8 billion (approximately KRW 7,972.8 billion) in 2030. Samsung Electro-Mechanics currently holds a market share of around 40% in the global AI server MLCC market.
Lee Dong-hoon
AI-translated with ChatGPT. Provided as is; original Korean text prevails.
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