Samsung Electro-Mechanics to Supply $330 Million Worth of MLCCs for Global AI Servers

Samsung Electro-Mechanics has secured a significant contract to supply multilayer ceramic capacitors (MLCCs) for AI servers to major global technology companies. The deal, valued at 450 billion won (approximately $330 million), will extend through 2027.

MLCCs are crucial components that stabilize electrical supply to semiconductors, preventing device malfunctions. The demand for high-spec MLCCs is particularly intense in AI servers due to their high processing loads and significant heat generation. These components must withstand extreme conditions, including temperatures above 105 degrees Celsius, high voltage, and physical stress, while also being used in much larger quantities, up to 600,000 units per server rack, ten times that of conventional servers.

This contract underscores Samsung Electro-Mechanics' dominant position in the high-barrier AI server MLCC market, where only a few global players compete. While the company holds a 25% share of the overall MLCC market, it commands over 40% of the lucrative AI server segment, demonstrating its technological prowess and strategic importance in the rapidly expanding AI infrastructure.