Samsung Electro-Mechanics announced on July 23 that it signed a ₩300 billion supply contract for AI server multi-layer ceramic capacitors (MLCC) with a global big tech company, with the contract running from January 1, 2027 to December 31, 2027. The company stated the contract reflects recognition of its production and quality management capabilities to meet demand from major global customers. Samsung Electro-Mechanics maintains a leading position in the AI server MLCC market with over 40% market share, competing primarily with Japan's Murata in a market with high technical barriers that limit entry by other manufacturers.
Samsung Electro-Mechanics Secures ₩300 Billion AI Server MLCC Contract for 2027
The supply contract covers a one-year period from January 1, 2027 through December 31, 2027. Samsung Electro-Mechanics explained that the agreement resulted from the global major customer's recognition of the company's production and quality management capabilities to respond to demand.
AI Server MLCC Technical Requirements and Market Dominance
AI server MLCC requires more than 10 times the installation volume compared to regular servers, with up to 600,000 units per server rack. The components must meet stringent reliability standards including ultra-small size, ultra-high capacity, high temperature and high voltage tolerance, and bending strength. Technical barriers make market entry difficult for other companies, resulting in Samsung Electro-Mechanics and Japan's Murata dividing the global market. Samsung Electro-Mechanics holds over 40% market share in the AI server MLCC sector.
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Samsung Electro-Mechanics MLCC [Source: Samsung Electro-Mechanics]
Samsung Electro-Mechanics Previous Supply Contracts in 2027
In May, Samsung Electro-Mechanics signed a long-term supply contract for silicon capacitors worth approximately ₩1.5 trillion. In June, the company secured an AI server MLCC supply contract with a global big tech company valued at approximately ₩450 billion.
Company Executive Statement on Contract Significance
Samsung Electro-Mechanics President Jang Deok-hyun stated, "This contract is the result of Samsung Electro-Mechanics MLCC being recognized for its technological capabilities as a core component of AI infrastructure." He added, "Based on customer trust, we will lead the AI component market by developing next-generation advanced products and establishing a stable supply system."
FAQ
What is the value and duration of Samsung Electro-Mechanics' new AI server MLCC contract?
Samsung Electro-Mechanics signed a ₩300 billion supply contract for AI server MLCC with a global big tech company on July 23, with the contract period running from January 1, 2027 to December 31, 2027.
How many MLCC components do AI servers require compared to regular servers?
AI server MLCC requires more than 10 times the installation volume compared to regular servers, with up to 600,000 units per server rack, and must meet stringent reliability standards including ultra-small size, ultra-high capacity, and high temperature and high voltage tolerance.
What other major supply contracts has Samsung Electro-Mechanics secured in 2027?
In May, Samsung Electro-Mechanics signed a ₩1.5 trillion silicon capacitor long-term supply contract, and in June secured a ₩450 billion AI server MLCC supply contract with a global big tech company.
