Samsung Electro-Mechanics wins $1.26 billion AI server capacitor supply deal

Samsung Electro-Mechanics said on Tuesday that it has signed a 1.72 trillion won ($1.26 billion) contract to supply multilayer ceramic capacitors (MLCC) for AI servers to a U.S.-based customer.

Samsung Electronics’ electronic components unit said that the contract runs from January 2027 through December 2027.

The company did not disclose the customer, citing a confidentiality agreement.

Industry observers, however, believe that the client is one of the major U.S. cloud service providers (CSPs).

Demand for AI server MLCCs has been rising rapidly as leading CSPs, including Amazon Web Services, Google and Meta, accelerate investment in AI data centers.

MLCCs are key electronic components that regulate and stabilize electrical current in circuits. They are widely used in smartphones, personal computers, automotive electronics and AI servers.

MLCCs designed for AI servers require more advanced manufacturing technology than those used in mobile devices.

Yonhap