Samsung Electro-Mechanics' multilayer ceramic capacitors (MLCCs), recognized as core components in the artificial intelligence (AI) value chain, are experiencing steep growth projections in the automotive electronics sector during the electric vehicle era, according to industry analysis released on the 9th. Automotive MLCCs require high-quality products similar to AI datacenter applications, with 20,000 to 30,000 units needed per vehicle, positioning Samsung Electro-Mechanics' high-end MLCC products favorably in this segment. The growth stems from the technical demands of automotive applications, where MLCCs must operate in temperatures from minus 55°C to above 125°C and withstand shock and humidity, with advanced driver assistance systems (ADAS) requiring even higher-performance components for autonomous driving technology.
Samsung Electro-Mechanics MLCC Revenue Reaches 4.7 Trillion Won in 2025
According to industry sources on the 9th, Samsung Electro-Mechanics' MLCC revenue is estimated at 3.55 trillion won in 2023, 4 trillion won in 2024, and 4.7 trillion won in 2025. The revenue is projected to reach 5.7 trillion won in 2026 and 8.2 trillion won in 2027. The revenue increase forecast reflects expectations that Samsung Electro-Mechanics will supply MLCCs at higher prices as AI datacenter investment surges and the company secures supplier advantage.
Samsung Electro-Mechanics Signs 454 Billion Won Long-Term Supply Agreement
Samsung Electro-Mechanics recently signed a 454 billion won long-term supply agreement (LTA) with a global customer, demonstrating its market dominance. The revenue growth projections include expectations for both the AI value chain and the automotive MLCC market.
Automotive MLCC Revenue Surpasses Industrial Segment Through 2025
According to iM Securities, Samsung Electro-Mechanics' automotive sector MLCC revenue reached 723 billion won in 2023, 972 billion won in 2024, and approximately 1.208 trillion won in 2025. The revenue is projected at 1.504 trillion won in 2026 and 1.9 trillion won in 2027. Through this year, automotive MLCC revenue is expected to exceed industrial (including AI datacenter) revenue. Industrial MLCC revenue recorded 948 billion won last year, with projections of 1.429 trillion won this year and 3.038 trillion won in 2027. Samsung Electro-Mechanics' quarterly reports show major MLCC customers include semiconductor companies such as Samsung Electronics, TSMC, and Intel, as well as electric vehicle manufacturers like Tesla and European automotive parts companies including Continental.
Automotive MLCCs Require 125°C Operating Temperature and Cost Three Times More
Automotive MLCCs must operate in high temperatures above 125°C and low temperatures of minus 55°C due to vehicle installation requirements, while also being resistant to shock and humidity. ADAS, the core of autonomous driving technology, requires advanced electronic control and uses more high-performance MLCCs. Automotive MLCCs cost more than three times the price of general-purpose MLCCs, with 20,000 to 30,000 MLCCs needed per electric vehicle. The requirements are similar to server MLCCs, which need ultra-high capacity in small areas and must withstand heat, both demanding high quality.
President Jang Announces AI Server and EV MLCC Strategy in March
Samsung Electro-Mechanics positions automotive and AI MLCCs as key growth drivers. President Jang Deok-hyun emphasized at the March shareholder meeting: "We will create business opportunities with differentiated products such as high-voltage, high-capacity MLCCs for AI servers, high-reliability, high-temperature MLCCs for electric vehicles, and camera modules for humanoids, and transform our business structure centered on these markets." An industry official explained: "As the era of electric vehicles and autonomous driving arrives, demand for automotive MLCCs will grow and the growth rate will steepen. While AI datacenter MLCCs are currently receiving attention, we also view automotive as Samsung Electro-Mechanics' growth axis."
FAQ
What is Samsung Electro-Mechanics' projected MLCC revenue for 2027?
Samsung Electro-Mechanics' MLCC revenue is projected to reach 8.2 trillion won in 2027, according to industry estimates released on the 9th. This represents substantial growth from the 4.7 trillion won estimated for 2025.
How much did Samsung Electro-Mechanics' long-term supply agreement with a global customer total?
Samsung Electro-Mechanics recently signed a 454 billion won long-term supply agreement (LTA) with a global customer, demonstrating its market dominance in the MLCC sector.
Why do automotive MLCCs cost more than general-purpose MLCCs?
Automotive MLCCs cost more than three times the price of general-purpose MLCCs because they must operate in extreme temperatures from minus 55°C to above 125°C, withstand shock and humidity, and meet high-reliability requirements for vehicle applications, with 20,000 to 30,000 units needed per electric vehicle.
