Samsung Electro-Mechanics has announced the signing of a supply contract worth approximately 450 billion won (about 1.967 billion yuan) with a global technology giant for multi-layer ceramic capacitors (MLCCs) used in AI servers. The contract covers the entirety of 2027, further solidifying the company's market position in the core components sector for AI infrastructure.
The contract value represents roughly 4.0% of the company's consolidated revenue forecast for 2025. Within the MLCC industry, a single contract of this magnitude is exceptionally rare. Samsung Electro-Mechanics disclosed the contract on June 30, with the term running from January 1 to December 31, 2027. Notably, the company commands a market share exceeding 40% in the AI server MLCC segment, significantly higher than its approximate 25% global share in the overall MLCC market. This disparity highlights its differentiated competitive advantage in a high-technology-barrier field.
As global investment in AI computing power continues to expand, demand for high-specification MLCCs is accelerating rapidly. AI servers require more than ten times the number of MLCCs compared to standard servers. The high technical barriers in this area concentrate supply among a handful of companies, strengthening the supply advantages and pricing power of the leading players.
Samsung Electro-Mechanics CEO Dukhyun Jang stated, "This contract proves that Samsung Electro-Mechanics' MLCCs are recognized as a core component in the AI era." He added that the company will "preemptively develop next-generation advanced products that meet customer needs to lead the market."
AI Server Demand Drives MLCC Surge, Samsung Commands Over 40% Share
MLCCs are core passive components that store electrical energy and supply stable power to semiconductors, while also eliminating signal interference (noise) within devices to enhance overall performance and stability. In AI server environments, sudden fluctuations in internal power can directly lead to performance degradation, making the role of MLCCs in stable power management increasingly critical.
In terms of quantity, AI servers typically install over 20,000 MLCCs on a single graphics processing unit (GPU), with up to 600,000 per server rack. This number is more than ten times greater than that of ordinary servers. With limited space for installation, demand for ultra-miniature products has risen substantially.
Furthermore, the high-computing operation of AI servers generates significant heat, requiring MLCCs to maintain stable performance under harsh conditions such as high temperatures (above 105°C), high voltage (100V), and strong bending strength. This places extremely high demands on product reliability. This set of technical specifications makes the research, development, and manufacturing of AI server MLCCs far more challenging than for traditional applications like consumer electronics.
Given these stringent technical requirements, the market entry barriers for AI server MLCCs are exceptionally high, with global supply concentrated among only a few companies. While Samsung Electro-Mechanics holds about a 25% global share in the overall MLCC market, its share exceeds 40% in the more technically demanding AI server segment, placing it in a leadership position.
Samsung Electro-Mechanics indicated that it will use this contract as an opportunity to actively advance multifaceted discussions with global customers and major technology firms regarding ongoing supply beyond 2027. The company plans to steadily increase the proportion of high-value-added products, such as those for AI and automotive electronics, in its supply, making the upgrade of its related product portfolio a key mid-term development focus.
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