A significant shift is underway in how the world's most powerful AI data centers are powered.
This change is the transition to an 800-volt (800V) high-voltage direct current (HVDC) power architecture. Why the move? In a word: efficiency. As AI models become more complex, the servers that train and run them consume enormous amounts of electricity, making power management a critical challenge.
First, the rationale is rooted in basic physics. For a given amount of power, raising the voltage drastically lowers the electrical current. This is crucial because the power lost as heat, known as I²R loss, is proportional to the square of the current. By switching from a traditional 48V system to 800V, power distribution losses can be cut by over 99%, a massive improvement.
Second, this efficiency translates directly into economic benefits. Less wasted energy means lower operating costs. More importantly, the lower current allows for the use of much smaller and lighter copper busbars to distribute power. With copper prices having surged over 40% in the past year, this reduction in material requirements offers substantial cost savings.
Finally, this new architecture creates strong demand for specialized power semiconductors and their packaging. These components must reliably handle high voltages and effectively dissipate heat. This is where Taiwanese lead frame makers like SDI Corporation and Jih Lin Technology enter the picture.
These companies developed their expertise by producing robust, high-reliability components for the demanding electric vehicle (EV) industry. This "automotive-grade" know-how is perfectly suited for the rigorous demands of 800V AI data centers. As a result, global semiconductor giants like Infineon and STMicroelectronics are placing significant orders with them, causing their factory utilization rates to climb.
This trend represents a structural change. For these specialized suppliers, the primary engine of growth is shifting from the automotive sector to AI servers. This pivot is expected to fuel double-digit revenue growth for them through 2026, marking a new era driven by the power demands of artificial intelligence.
- Lead Frame: The metal framework inside a semiconductor package that connects the tiny silicon chip to the external pins or leads, allowing it to be mounted on a circuit board.
- HVDC (High-Voltage Direct Current): A system used to transmit electricity with lower energy losses over long distances or within high-power facilities like data centers, compared to traditional alternating current (AC).
- I²R Loss: Also known as Joule heating, it is the energy lost as heat when an electrical current (I) flows through a component with resistance (R). Reducing the current dramatically lowers this loss.