Samsung Electro-Mechanics Signs 7 Supply Deals Worth 4.3 Trillion Won
All seven long-term contracts begin January 1, 2027, and the company is expected to post revenue above 18 trillion won next year.
Samsung Electro-Mechanics has signed seven long-term supply contracts totaling about 4.3 trillion won, according to digitaltoday.co.kr. All seven are set to begin on January 1, 2027, and the company is expected to post revenue above 18 trillion won next year.
The contract items have widened from silicon capacitors, MLCC and inductors to semiconductor package substrates. The most recent agreement, a package substrate deal, was signed on the 18th of this month.
Long-term supply contract volume already secured for 2027 stands at about 3.5 trillion won. The AI share of MLCC revenue is expected to exceed 40%.
Capacity expansion at Sejong and Vietnam
On September 28, the company decided to expand package substrate production at its Sejong plant and its Vietnam subsidiary. The Sejong expansion runs until May 2028, while the equipment acquisition date for the Vietnam facility is April 30, 2028.
The company began its run of supply contracts in May with a silicon capacitor deal. According to reports, it also raised MLCC prices for distribution channels twice, in June and August.
Quick answers
When do Samsung Electro-Mechanics' long-term supply contracts start?
All seven contracts begin on January 1, 2027.
How much are the seven contracts worth?
The seven contracts total about 4.3 trillion won.
Where is Samsung Electro-Mechanics expanding package substrate production?
At its Sejong plant and its Vietnam subsidiary, decided on September 28.