IDMs target AI margins, boosting Taiwan power suppliers

International IDM vendors are aggressively entering the AI data center space, driving a shift toward 400V and 800V power architectures, which is significantly boosting demand for mid-tier power semiconductor suppliers in Taiwan. This technological transition is creating ripple effects across the upstream SiC/GaN materials and midstream packaging sectors, especially under high-efficiency, high-power-density applications. Geopolitical tensions are intensifying, and any further decoupling between the U.S. and China in AI compute and power devices may force Taiwan suppliers to accelerate self-reliance and capacity expansion. Market players are likely to respond with price hikes, capacity expansion, or M&A strategies, while smaller firms face increasing marginalization. Over the next 12 to 24 months, the power semiconductor cycle will remain robust, particularly in data centers and EVs, with Taiwan vendors expected to enter a new growth phase by 2025, and some segments possibly extending into 2027.