Seoul: Samsung Electro-Mechanics Co. announced that it has secured a 1.72 trillion-won (US$1.25 billion) deal to supply multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers to a customer based in the U.S.

According to Yonhap News Agency, the contract spans from January 2027 to December 2027. Despite the significant deal, Samsung Electro-Mechanics has chosen not to disclose the identity of the customer, citing a confidentiality agreement. However, industry analysts speculate that the client is among the major U.S. cloud service providers (CSPs).

The demand for AI server MLCCs is experiencing substantial growth as prominent CSPs, such as Amazon Web Services, Google, and Meta, continue to invest heavily in AI data centers. These components play a crucial role in regulating and stabilizing electrical current in circuits and are integral to various technologies, including smartphones, personal computers, automotive electronics, and AI servers.

The MLCCs needed for AI servers demand more sophisticated manufacturing technology compared to those used in mobile devices, highlighting the advanced capabilities required to meet such industry demands.