🧠 Food for thought

Implications, context, and why it matters.

Samsung’s claim clashes with its role as a second source

• Samsung Electro-Mechanics (SEMCO) is widely seen as the world’s No. 2 maker of multilayer ceramic capacitors (MLCCs), small parts that manage power and signals in electronic devices 1.
• A few companies control this market. Murata Manufacturing holds about 40% of global share, while SEMCO has about 20% to 25% 1.
• SEMCO matters to AI hardware builders because it gives them a viable second source for MLCCs, which lowers supply chain risk and eases dependence on Murata 1.

AI components bring rich margins and hard production limits

• AI servers use more than 10 to 15 times as many MLCCs as general-purpose servers, which helps explain the company’s push into AI 2.
• These parts sell for two to three times the price of standard IT MLCCs. AI-related MLCCs made up 3% of revenue in 2023, rose to 9% in 2024, and were expected to top 10% in 2025 1.
• Making them is hard. Even stable high-end MLCC lines may stay at 60% to 70% yield, which limits profit even with higher average selling prices (ASPs) 1.
• Pressure also runs through flip-chip ball grid array (FC-BGA) substrates, advanced chip packaging materials used to connect processors to circuit boards. Demand is more than 50% above capacity, creating a seller’s market where SEMCO has raised prices on some FC-BGA products 3.