Samsung Electro-Mechanics signs 290bn-won AI server MLCC supply deal
In short
Samsung Electro-Mechanics said it signed a contract to supply AI server multilayer ceramic capacitors (MLCC) to a large global company, valued at about 290 billion won, with the term running from January 1 to December 31, 2027. The company said it is the sixth long-term supply agreement it has disclosed this year, bringing cumulative disclosed value since May to about 3.9 trillion won. The customer was not named.
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Samsung Electro-Mechanics said on October 6 that it signed a contract to supply multilayer ceramic capacitors (MLCC) for AI servers to a large global company, valued at about 290 billion won. Chosun Ilbo reported the disclosed contract value as 285,611.04 million won, while Bloter put it at $210 million, or 290 billion won. Yonhap, ZDNet Korea, NoCut News and Asia Economy reported the term as one year, from January 1 to December 31, 2027. [ 2 , 3 , 4 , 5 , 6 , 7 , 9 ]
The company said the deal is the sixth long-term supply agreement (LTA) it has disclosed this year. Newsis, Chosun Ilbo, Yonhap, ZDNet Korea, NoCut News and Asia Economy reported that agreements signed since May covering silicon capacitors, AI server MLCCs and inductors now total about 3.9 trillion won on a disclosed basis. Newsis said the new contract equals about 2.5% of the company's previous year's consolidated revenue of 11.3144 trillion won. [ 2 , 3 , 4 , 5 , 6 , 7 ]
Bloter gave a different count and breakdown of the year's orders, describing the new deal as the fourth standalone MLCC contract, after contracts worth 453.9 billion won in June, 295.1 billion won in July and 1.0722 trillion won in September, plus a 285 billion won MLCC and inductor deal on September 29. It also reported a 1.5 trillion won silicon capacitor contract signed in May for supply in 2027 and 2028, and said the year's cumulative LTA total was close to 4 trillion won. [ 9 ]
MLCCs store electricity, supply it steadily to semiconductors and limit signal interference between components, the outlets reported. AI server versions must run around the clock in high-temperature and high-voltage conditions and therefore need high capacitance and reliability at small size. The reports said AI servers carry more than 10 times as many MLCCs as ordinary servers, up to 600,000 per server rack, and that the requirements leave only a limited number of suppliers able to serve the market at scale. [ 2 , 4 , 5 , 6 , 7 , 9 ]
The company said it holds more than 40% of the AI server MLCC market and is in talks with global companies on further supply contracts. NoCut News reported it has LTAs with about 10 global companies. Yonhap, ZDNet Korea, NoCut News and Asia Economy cited Goldman Sachs as forecasting the AI server MLCC market would grow from $1.4 billion in 2025 to $5.8 billion in 2030, an average of about 34% a year; Bloter cited Goldman Sachs figures of about 2 trillion won last year rising to 8 trillion won by 2030. The customer was not named in any document. [ 2 , 4 , 6 , 7 , 9 ]
A Samsung Electro-Mechanics official said customer demand for high-performance MLCCs continues to rise along with growth in the AI market, adding that the company will expand the share of AI MLCC products and strengthen its position in the global market. Asia Economy's page showed the company's shares at 1,665,000 won, up 5.31%, as of 11:46 local time. [ 2 , 4 , 5 , 6 , 7 , 9 ]
Why it matters
The deal is a company disclosure rather than a single market-moving event, but the cumulative long-term contracts reported since May point to how far AI server demand has moved into the passive component supply chain. The documents say the reliability requirements leave only a limited number of suppliers able to serve the market, which the covered outlets present as a competitive position for this supplier.
Key facts
- Samsung Electro-Mechanics disclosed a supply contract for AI server MLCC with a large global company, valued at about 290 billion won. [ 2 , 3 , 4 , 5 , 6 , 7 , 9 ]
- Chosun Ilbo reported the disclosed contract value as 285,611.04 million won; Bloter put it at $210 million (290 billion won). [ 3 ]
- The contract period is one year, from January 1 to December 31, 2027. [ 4 , 5 , 6 , 7 ]
- It is the sixth long-term supply agreement the company has disclosed this year. [ 2 , 3 , 4 , 5 , 6 , 7 ]
- Cumulative disclosed long-term supply agreements signed since May, covering silicon capacitors, AI server MLCCs and inductors, total about 3.9 trillion won. [ 2 , 3 , 4 , 5 , 6 , 7 , 9 ]
- Newsis said the deal equals about 2.5% of the company's previous year's consolidated revenue of 11.3144 trillion won. [ 2 ]
- AI servers use more than 10 times as many MLCCs as ordinary servers, up to 600,000 per server rack, the reports said. [ 2 , 5 , 6 , 7 , 9 ]
- The company said it holds more than 40% of the AI server MLCC market and is discussing further supply contracts with global companies. [ 2 , 4 , 6 , 7 , 9 ]
Confirmed by several sources
- Samsung Electro-Mechanics signed an MLCC supply contract with a large global company, valued at about 290 billion won. [ 2 , 3 , 4 , 5 , 6 , 7 , 9 ]
- The contract term is one year, from January 1 to December 31, 2027. [ 4 , 5 , 6 , 7 ]
- The deal is the sixth long-term supply agreement the company has disclosed this year. [ 2 , 3 , 4 , 5 , 6 , 7 ]
- Long-term supply agreements disclosed since May total about 3.9 trillion won. [ 2 , 3 , 4 , 5 , 6 , 7 , 9 ]
- AI servers carry more than 10 times as many MLCCs as ordinary servers, up to 600,000 units per server rack. [ 2 , 5 , 6 , 7 , 9 ]
- The company said it holds more than 40% of the AI server MLCC market. [ 2 , 4 , 6 , 7 , 9 ]
Still unclear
- The identity of the customer was not disclosed. Every document describes the buyer only as a large global company, and no outlet named it.
- The size and growth rate of the AI server MLCC market. Yonhap, ZDNet Korea, NoCut News and Asia Economy cite Goldman Sachs figures of $1.4 billion in 2025 rising to $5.8 billion in 2030 at about 34% a year, while Bloter cites Goldman Sachs as saying the market grows from about 2 trillion won last year to 8 trillion won in 2030.
- How many MLCC-only contracts the company has signed this year. Most outlets count the new deal as the sixth long-term supply agreement disclosed this year, while Bloter calls it the fourth standalone MLCC contract and the fifth including an MLCC and inductor deal signed in September.
- The exact contract value. Documents give it as about 290 billion won, 285.6 billion won or 285,611.04 million won, and Bloter adds a dollar figure of $210 million.
- Details of the deal could not be read from one Newsis item. A Newsis document carries a headline about the contract but its article text concerns an unrelated Supreme Court confirmation hearing, so only the headline supports the deal.
What local media are saying
Timeline, local time
- Newsis publishes a headline reporting a 285.6 billion won MLCC supply contract. [ 1 ]
- Newsis reports the deal is the sixth long-term supply agreement this year and that cumulative disclosed value reached about 3.9 trillion won. [ 2 ]
- Chosun Ilbo reports the disclosed contract value of 285,611.04 million won. [ 3 ]
- Yonhap reports the one-year term, the Goldman Sachs market forecast and the company's stated 40% plus market share. Asia Economy's page shows the stock at 1,665,000 won, up 5.31%, as of this time. [ 4 , 7 ]
- ZDNet Korea reports the contract period as January 1 to December 31, 2027. [ 5 ]
- NoCut News reports the company has long-term MLCC agreements with about 10 global companies. [ 6 ]
- Asia Economy reports the deal as a large long-term supply agreement. [ 7 ]
- Bloter breaks down the year's MLCC contracts and values the new deal at $210 million. [ 9 ]