Samsung Electro-Mechanics Secures $2.6 B in AI Component Supply Deals for 2027

Samsung Electro-Mechanics reported that it has accumulated about 3.6 trillion won in disclosed long-term supply agreements for AI-related components, as customers secure parts for servers slated for 2027 and beyond. The most recent contract, announced on Tuesday, involves an unnamed global buyer purchasing roughly 290 billion won of multilayer ceramic capacitors and inductors for delivery throughout 2027. This is the fifth such agreement disclosed this year, adding to a 1.56 trillion-won silicon-capacitor deal, a 454 billion-won MLCC contract, and a record 1.07 trillion-won MLCC deal.

Analysts from Hana Securities say AI server purchasers have a relatively high tolerance for price hikes, which could boost Samsung’s margins. Lead times for FC-BGAs remain at 48-56 weeks, far longer than the usual 12 weeks, despite industry capacity growth. To meet demand, Samsung plans a 4.27 trillion-won expansion of AI-server FC-BGA capacity in Sejong and a 2.51 trillion-won increase in package-substrate production in Vietnam, with global customers helping fund the Sejong project.