Samsung Electronics has continued to expand its workforce in power semiconductor development within its Device Solutions (DS) division this year. This expansion is in response to the growing power consumption driven by the AI boom in the server semiconductor market, increased demand for chips related to this sector, and potential growth in markets for electric vehicles and PCs. Samsung Electronics is reportedly considering further investments to expand its production capacity for power semiconductors.
Industry insiders reported on Apr. 24 that Samsung Electronics is continually recruiting top talent to design and produce power semiconductors. This follows the establishment of the Compound Semiconductor Solutions (CSS) business team, which was dedicated to the power semiconductor sector late last year. Operating directly under the CEO, this team aims to enhance its R&D capabilities and pioneer new technologies in the power semiconductor domain.
A senior official at Samsung Electronics said, “We plan to internalize certain high-performance power chip technologies that are currently outsourced, aiming to secure independent design and manufacturing capabilities within the year. Our goal is to design and produce power chips that support high performance and energy efficiency for AI data centers and electric vehicles.”
Power semiconductors are crucial components in electronic devices such as smartphones and home appliances, as well as in data centers and electric vehicles, where they manage power conversion, current distribution, and control. Next-generation power semiconductors made from compound materials like gallium nitride (GaN) and silicon carbide (SiC) have recently gained prominence. These materials are noted for surpassing the performance limits of traditional silicon (Si) materials.
The demand for power semiconductors is poised to surge with the expansion of AI data centers. Some industry experts expect a supercycle—a period marked by initial rapid growth. As the construction of AI data centers accelerates this year, an inevitable power supply bottleneck is expected. Addressing the power needs of data centers will require options such as small nuclear power plants, nuclear fusion, and increased reliance on fossil fuels, which present challenges in light of the goal for carbon neutrality (net-zero emissions) set by major countries for 2050 and the commercialization of new technologies.
Kim Dong-won, Managing Director at KB Securities, said, “By 2026, global data center power consumption is expected to double, and power supply challenges will become more acute. The United States, which hosts one-third of the world’s 8,000 data centers, is already facing power shortages starting this year.”
He added, “The global power shortage stems from AI data centers, semiconductors, secondary battery manufacturing, electric vehicles, and electric heat pumps (HVAC) all requiring substantial electricity. Companies producing power equipment—such as transformers, wires, and copper—are currently negotiating orders for 2027-2030 with customers, and we expect the power equipment supercycle to last longer than previous cycles.”
Japanese automotive semiconductor company Renesas has significantly expanded its power semiconductor facilities in response to market demands. Local media reports indicate that Renesas has reopened its Yamanashi-ken Kofu plant, closed in October 2014 after a nine-and-a-half-year hiatus.
Although originally focused on producing power semiconductors for PCs, the plant will now be repurposed as a power management integrated circuits (PMIC) production base. With this investment, Renesas plans to double its production of power semiconductors next year.
