Samsung Electro-Mechanics books W750b in AI server orders

Samsung Electro-Mechanics said Thursday it has signed a supply contract worth about 300 billion won ($204 million) for multilayer ceramic capacitors used in artificial intelligence servers, its second such agreement in under a month.

The buyer was described only as a large global company.

Deliveries will run from Jan. 1 to Dec. 31, 2027. That is the same window covered by a 450 billion won contract announced June 30 with an unnamed global tech firm, bringing disclosed MLCC orders for that single year to 750 billion won. Both customers remain undisclosed.

MLCCs store electricity and release it to keep voltage steady for chips. They are ordinarily bought in short cycles rather than booked out 18 months ahead, and Samsung Electro-Mechanics called back-to-back long-term agreements of this size unusual for the industry.

Volume is part of why. A single AI server rack can hold up to 600,000 of the parts by the company’s count, more than 10 times what a conventional server needs, and the field of qualified suppliers is narrowed by the heat and voltage inside.

An aerial view of Samsung Electro-Mechanics' Suwon campus in Gyeonggi Province, the company's headquarters (Samsung Electro-Mechanics)

The company claims its share of the AI server MLCC market is above 40 percent. It stops short of claiming first place against Japan’s Murata Manufacturing, saying only that it ranks among the leaders.

Investors moved well ahead of the contracts. The stock rose 756 percent in the first half of the year, the best performance on the Kospi and far outpacing SK hynix and Samsung Electronics, lifting the company from 33rd to fifth by market value.

In May it signed a separate 1.5 trillion won contract for silicon capacitors, a component that sits closer to the chip, running through 2027 and 2028.

“This contract reflects recognition of our MLCC technology as a core component of AI infrastructure,” President Chang Duck-hyun said, adding the company would build out next-generation products and a stable supply system to lead the AI component market.

Talks on further mid- to long-term supply deals with several global customers are underway. Second-quarter earnings are due July 30.

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