Samsung Electro-Mechanics Co., an electronic component manufacturing company under South Korea’s Samsung Group, has signed a contract worth about 450 billion won ($290.82 million) with a global big tech company to supply multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers. Samsung Electro-Mechanics disclosed in a regulatory filing on Tuesday that it has signed a 450 billion won contract with a global big tech company to supply MLCCs for AI servers. The contract period runs for one year from January 1 to December 31, 2027. MLCCs for AI servers are high-value-added products that only a small number of global companies can supply due to high technological barriers. AI servers use up to 10 times more MLCCs than ordinary servers. More than 20,000 MLCCs are used in a single graphics processing unit (GPU), and up to 600,000 can be used per server rack. Samsung Electro-Mechanics holds about 25 percent of the global MLCC market. In the AI server MLCC segment, the company commands more than 40 percent market share.