Samsung Electro-Mechanics wins $780 mil. AI server capacitor contract

Samsung Electro-Mechanics said Tuesday it has secured a 1.07 trillion won ($780 million) contract to supply multilayer ceramic capacitors (MLCC) for artificial intelligence (AI) servers to a global customer. The contract, which runs from January through December 2027, is the largest long-term MLCC supply agreement in the company’s history. Samsung Electro-Mechanics did not identify the customer, citing a confidentiality agreement. Industry observers said the client is believed to be one of the world’s major AI semiconductor companies. Demand for MLCCs used in AI servers has risen rapidly as major cloud service providers, including Amazon Web Services, Google and Meta, and chipmakers such as Nvidia and AMD expand their investments in AI infrastructure. MLCCs are essential electronic components that regulate and stabilize electrical current in circuits while helping prevent signal interference between components. They are widely used in smartphones, personal computers, automotive electronics and servers. MLCCs designed for AI servers require high capacity and reliability because the se