Samsung Electro-Mechanics is in final-stage negotiations with a global power and electronic components company for a Long-Term Supply Agreement to provide multilayer ceramic capacitors (MLCCs) for AI servers. The proposed contract is valued at about 700 billion Korean won, or approximately $505.4 million, and would lift the company’s cumulative LTA bookings over the past four months above 4 trillion Korean won, or about $2.9 billion. Samsung Electro-Mechanics signed agreements totaling 3.32 trillion Korean won, or roughly $2.4 billion, from May through early this month, focused on silicon capacitors and AI server MLCCs. The company has MLCC LTAs with around 10 global companies and is negotiating with additional customers. AI server MLCCs require high capacitance and reliability because servers operate continuously in high-temperature, high-voltage environments. They are used in volumes exceeding 10 times those of standard server MLCCs and cost at least three times as much as mobile MLCCs. TrendForce says demand is accelerating as AI server platforms are upgraded and cloud service providers expand custom AI semiconductor production, with the fourth quarter set to be a key point for assessing a potential supply shortage. Samsung Electro-Mechanics’ MLCC facilities are operating in the high-90% utilization range, prompting price increases on some products and discussions of further rises. The company and rivals are reallocating capacity toward AI and data-center components. Securities analysts expect operating profit in the Component Solutions Division to reach 1.3 trillion Korean won this year, compared with about 600 billion won last year, with some forecasts reaching the upper 2 trillion won range next year and exceeding 4 trillion won by 2028.