53rd anniversary ceremony held Monday at Suwon campus

Long-term supply agreements top 5 trillion won this year

CEO urges AI agent adoption; in-house AI hackathon winners honored

Samsung Electro-Mechanics President and CEO Jang Deok-hyeon presents the company's business results at the annual shareholders meeting in March. [Samsung Electro-Mechanics]
Samsung Electro-Mechanics President and CEO Jang Deok-hyeon presents the company's business results at the annual shareholders meeting in March. [Samsung Electro-Mechanics]

Samsung Electro-Mechanics President and CEO Jang Deok-hyeon said the spread of artificial intelligence has opened major new growth opportunities in multilayer ceramic capacitors (MLCC) and package substrates, speaking at the company's 53rd anniversary ceremony.

At the ceremony held Monday at the Suwon campus, Jang said the AI industry is "no more than Jan. 1" in its development. "As AI servers and data centers expand, demand for core components and the level of technical difficulty are rising sharply," Jang said. "An unprecedented, large-scale growth opportunity has emerged across all of our key businesses, including MLCC and package substrates."

Reflecting that outlook, Samsung Electro-Mechanics has been signing long-term supply agreements (LTAs) in quick succession this year for key components including MLCC, inductors and FC-BGA (flip-chip ball grid array) substrates.

On Friday, the company added an 880 billion won ($658 million) LTA for AI server MLCC, bringing its cumulative disclosed LTA total for this year to 5.18 trillion won. Samsung Electro-Mechanics has now completed or is in the process of concluding long-term supply agreements with more than 50 customers.

Jang said AI technology "is fundamentally redefining the way people work," and called on all employees to use their own specialized AI agents to streamline routine and repetitive tasks so they can focus their energy on more creative and substantive work.

Jang added that Samsung Electro-Mechanics has global partnerships, a distinctive product portfolio and proven production capacity, making "execution" the key priority. "Let us demonstrate through results the opportunity we have been given, by putting that execution into practice across every area — development, production, quality, and safety and environment," Jang said.

Senior executives and employees attended the ceremony in person, while staff at all domestic and overseas sites, including Sejong and Busan, joined via the company's internal broadcast network.

In addition to long-service awards, the ceremony included a prize presentation for winners of an in-house AI hackathon held to boost employees' AI capabilities and drive workplace innovation. Awards went to employees who identified high-value practical applications, including manufacturing process optimization and task automation.


jeongwan@heraldcorp.com