Infineon Sees AI Data Center Power Chips as Key Growth Driver

“Infineon chips are used throughout the entire power supply chain of artificial intelligence (AI) data centers.”

Adam White, president of Infineon’s Power Systems division, made the remarks at a press conference at Infineon Korea’s headquarters in Samseong-dong, Seoul, on Nov. 5, outlining the company’s “From Grid to Core” power semiconductor strategy.

White expects the power semiconductor market to expand significantly as AI data centers consume more electricity and transition to 800-volt direct current (800VDC) architectures.

He projected that data centers’ share of global electricity generation would rise from the current 3% to 7%–8% by 2030. Power consumption per server rack is expected to increase from 100–150 kilowatts (kW) today to more than 1 megawatt (MW) after 2028, driven by graphics processing units (GPUs) whose individual power consumption will climb from 1,000 watts (W) to more than 2,000W.

The 800VDC architecture is being promoted by Nvidia for AI data centers. Under conventional designs, incoming alternating current (AC) is stepped down to several hundred volts at a substation. A rack-level power supply unit (PSU) then converts it to 48–54V DC. Voltage is further reduced to 12V and below 1V on the server board before reaching the GPU. Each conversion stage generates power losses and heat.

The 800VDC architecture converts AC directly to 800V DC and distributes it to server racks. Voltage is then stepped down only once or twice near the GPU, reducing conversion losses and heat generation. The design also reduces the space required for cabling and PSUs. Nvidia plans to expand adoption of the architecture alongside shipments of its Kyber racks in 2027.

Infineon supplies power semiconductors and reference designs for each stage of the architecture.

Transformers and circuit breakers connecting power grids to data centers are shifting from mechanical to semiconductor-based designs. Conventional systems use mechanical transformers to reduce voltage before rectifiers convert AC to DC. Solid-state transformers (SSTs) convert AC directly to 800V DC and are smaller and lighter than conventional transformers. Solid-state circuit breakers (SSCBs) can interrupt abnormal currents faster than mechanical breakers and support remote control. Infineon supplies silicon carbide (SiC) devices for transformers and power semiconductors for circuit breakers.

“Customers are already shipping mass-produced solid-state circuit breakers,” White said. “Preparations for mass production of solid-state transformers are also accelerating in line with the adoption of 800V DC.”

Inside data centers, PSU capacities are also increasing. Infineon expects the market to shift from the single-phase 8kW units currently in mass production to three-phase 30kW systems. The company provides power supply manufacturers with reference boards for three-phase PSUs, 800V battery backup units (BBUs) and intermediate bus converters (IBCs) that step down 800V directly to 6V.

Infineon also supplies vertical power delivery modules that reduce voltage to below 1V near GPUs. The modules, measuring less than 3 millimeters thick, are scheduled for release in 2027.

“As GPU power consumption increases from 2,000W to 3,000W and 4,000W, power systems must handle higher currents and heat at lower voltages,” White said. “Our recent acquisition of C2i has given us digital controllers that support these architectures.” Infineon acquired Indian startup C2i Semiconductors in August.

The company is also expanding cooperation with South Korean businesses. White outlined partnerships with Hyosung Heavy Industries, LS Electric and SoluM during the briefing.

Infineon is working with Hyosung Heavy Industries on high-voltage direct current (HVDC) transmission technology. In July, it signed a memorandum of understanding (MOU) with LS Electric to jointly develop SSTs and SSCBs. Infineon also signed an MOU with SoluM on Nov. 5 to jointly develop server PSUs, BBUs and IBCs. The partnerships cover different stages of the power supply chain, with Hyosung Heavy Industries and LS Electric focusing on the grid and data center power infrastructure, while SoluM works on systems closer to servers.

Infineon has established similar partnerships with overseas companies. In August 2025, it announced plans to jointly develop vertical power delivery (VPD) modules for AI processors with Taiwan’s Delta Electronics. In March 2026, it formed a partnership with U.S.-based DG Matrix to supply SiC power semiconductors for SSTs. In September, it signed an MOU with Estonia’s Skeleton Technologies to jointly develop power solutions for AI data centers, including SSTs and high-power sidecar power systems.

Infineon considers power solutions for AI data centers its most important growth driver. Revenue from AI data center power semiconductors exceeded 700 million euros in fiscal 2025, which ran from October 2024 through September 2025. In February, the company set revenue targets of 1.5 billion euros for fiscal 2026 and 2.5 billion euros for fiscal 2027. In August, it raised its fiscal 2026 forecast to more than 1.6 billion euros.

White said the company would announce a revised target at its headquarters’ earnings presentation on Nov. 10, local time.