Samsung Electro-Mechanics disclosed on June 30th that it had signed a single-product sales and supply agreement for high-capacity MLCCs (multilayer ceramic capacitors), the miniature components used to regulate electrical current in electronic devices. The contract is valued at approximately ₩454bn (around $330m), equivalent to 4.0% of the company's total revenue last year.
The agreement covers a one-year period from January 1st to December 31st, 2027.
In a research note published on July 1st, IBK Investment & Securities identified the counterparty as a cloud service provider (CSP). At roughly ₩450bn, the deal represents approximately 10% of Samsung Electro-Mechanics' total MLCC revenue. Analyst Kim Un-ho noted the significance of the figure: "Given that individual key customers typically account for around 10% of the company's MLCC sales, a single product contract approaching that same threshold implies a dramatic expansion in the scale of business."
The surge in AI server deployment is driving the sharp rise in demand for high-capacity MLCCs. According to AMD, a single AI server requires 10,544 units of 47µF 0402-specification MLCCs — more than seven times the 1,440 units needed in a conventional server.
On the supply side, IBK Investment & Securities warned that competition for available stock is set to intensify, as only two suppliers worldwide are capable of producing high-capacity MLCCs at this specification. Because manufacturing these advanced components ties up production capacity that cannot easily be redirected, overall supply will remain constrained — a dynamic the broker expects to push prices higher.
IBK Investment & Securities maintained its "buy" recommendation on Samsung Electro-Mechanics with a target price of ₩1,050,000 per share.