Power semiconductors race to cut resistance for GPU cooling

The AI compute boom is forcing a fundamental redesign of power delivery architectures, elevating power semiconductors from passive components to critical system bottlenecks. Technically, stepping down 800V HVDC to sub-1V for GPUs across multiple conversion stages makes conduction losses the primary limiter of energy efficiency, accelerating adoption of SiC and GaN devices and driving demand for advanced packaging and thermal solutions. Regulatory shifts like the EU’s Ecodesign Lot 9 will inflate BOM costs for non-integrated designs, squeezing smaller players lacking vertical integration. Strategically, Infineon and Wolfspeed are repurposing automotive SiC capacity for data centers, while Taiwan, China-based firms leverage mature 8-inch fabs to dominate mid-voltage GaN segments. Within 18 months, co-design of power ICs with AI ASICs will become the new competitive moat—control over the voltage-power-area tradeoff dictates leadership in next-gen AI infrastructure.