Samsung Electro-Mechanics Secures Long-Term Contracts for Inductors as…
Samsung Electro-Mechanics announced on the 29th that it had signed a KRW 285 billion contract to supply MLCCs and inductors. Its cumulative long-term contracts for 2027 supply have increased to KRW 2.1062 trillion. / Photo generated by COXNEWS using Gemini (AI)
Samsung Electro-Mechanics has secured KRW 2.1062 trillion worth of long-term contracts in advance for MLCCs (multilayer ceramic capacitors) and inductors to be supplied throughout 2027. The four one-year contracts signed in 2026 are all structured for delivery from January through December 2027. This is the first time that inductors have been included in the contracted items.
Samsung Electro-Mechanics announced on the 29th that it had signed a KRW 285.0304 billion contract to supply MLCCs and inductors to a major global company. The contract was signed in U.S. dollars, totaling USD 210.80107 million. The KRW amount was calculated using the initial announced trading base rate of KRW 1,352 per U.S. dollar on the 28th, the contract date. The amount represents 2.5% of its 2025 consolidated revenue of KRW 11.3145 trillion. The supply period runs from January 1 to December 31, 2027.
The contracting party and detailed terms were not disclosed. At the counterparty's request to protect trade secrets, disclosure has been postponed until December 31, 2027. The industry believes the counterparty is one of the North American Big Tech companies. There is no contract deposit or advance payment.
The company explained that the contracted products will be used in AI servers. MLCCs are components that regulate the flow of electricity evenly through circuits and prevent signals from mixing between components. Inductors stabilize power when current suddenly fluctuates and reduce noise generated during the process of converting electrical power. AI servers consume large amounts of electricity, and their power consumption also fluctuates significantly. As a result, both components are required to offer greater capacity and higher durability.
This is Samsung Electro-Mechanics' fifth long-term supply agreement (LTA) disclosed in 2026. Beginning with a KRW 1.557 trillion silicon capacitor contract on May 20, MLCC contracts worth KRW 453.9 billion on June 30, KRW 295.1 billion on July 23, and KRW 1.0722 trillion on the 1st were subsequently announced. The total of all five contracts exceeds KRW 3.6 trillion.
Among these, the four MLCC and inductor contracts are scheduled to be supplied throughout 2027. Their combined value is KRW 2.1062 trillion, equivalent to approximately 18.6% of 2025 consolidated revenue. The silicon capacitor contract is scheduled to be supplied over two years, from 2027 to 2028.
Samsung Electro-Mechanics currently maintains long-term MLCC supply agreements with more than 10 global companies. It is also negotiating additional contracts with other customers.
A Samsung Electro-Mechanics official said, "As technology in the global AI market advances, the performance and reliability levels required for MLCCs are also increasing," adding, "We are expanding cooperation with global customers based on differentiated technological capabilities and stable supply capabilities."
However, since the contract amount is denominated in U.S. dollars, actual KRW-denominated revenue may vary depending on exchange rates. The company also stated in its disclosure that the contract amount and period may change during the course of business.
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