Supermicro, a major server manufacturer, is facing potential delisting after failing to submit its financial report on time. Previously, the Economic Daily News reported that the company had halted expansion of its Malaysia plant. However, in response to inquiries from the Central News Agency, Supermicro clarified that its plans for the Malaysia facility remain unchanged, with production set to commence by the end of this year, and emphasized that customer orders are “still robust.”

According to the Economic Daily News, Supermicro’s Malaysia plant was originally scheduled to come online in the fourth quarter, doubling the company’s production capacity. However, amid financial turmoil, the project has been temporarily delayed. In response, YTL Group, a key client in Malaysia with close ties to Nvidia, has shifted its AI server orders to Wiwynn’s Malaysia facility, a subsidiary of Wistron, for local support.

When asked about the potential order transfer due to the Supermicro incident, Wistron declined to comment on individual clients and products.

In a written statement to the Central News Agency, Supermicro reiterated, “As previously announced, our Malaysia facility is on track to commence production and shipping by the end of 2024. This plan remains unchanged.”

Supermicro further noted, “We continue to secure substantial business in Malaysia within a highly competitive market, meeting all approved orders on schedule, and customer demand remains strong.”

Founded in 1993 by Taiwanese CEO Charles Liang, Supermicro has benefited from the AI boom, posting exponential growth in revenue each of the past three quarters. However, it missed its financial reporting deadline amid media reports in late September alleging accounting issues, now under investigation by the U.S. Department of Justice.

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• [News] Supermicro’s Financial Crisis Shifts Malaysia’s YTL Group Order to Taiwanese Firm

(Photo credit: Supermicro)

As two representative materials of wide-bandgap semiconductors, gallium nitride (GaN) currently thrives in the fast charging sector of consumer electronics, while silicon carbide (SiC) is gradually gaining ground in the application scenarios of new energy vehicles. Simultaneously, both are expanding into broader application boundaries. The strong emergence of AI has created new incremental markets for silicon carbide and gallium nitride.

Against this backdrop, innovative products such as Infineon’s CoolSiC™ MOSFET 400V series and Navitas’ new 4.5kW server power supply solutions have recently been launched, driving the increasing popularity of silicon carbide/gallium nitride in AI server power supplies (PSU).

Silicon Carbide/Gallium Nitride: The Breakthrough for PSU Upgrades

In recent years, the hot application of generative AI and the explosive growth of AI chip computing power have led to a surge in global data center electricity consumption. To address the high energy consumption crisis brought about by AI, upgrading data center PSUs has become a critical breakthrough.

Currently, PSUs for global AI and hyperscale computing data centers come in three form factors: CRPS185, CRPS265, and OCP of the Open Compute Project. The heights and widths of these power supplies are the same, differing only in length. Each CRPS185 power supply has fixed dimensions of 185mm x 73.5mm x 40mm. Thus, given that the physical size cannot change, increasing power demands from AI servers necessitate improvements in power density.

Power density enhancements can be achieved by increasing switching frequency. Since silicon-based products have reached their physical performance limits, the high switching frequency characteristics of GaN devices make them more suitable for high-density CRPS applications. In contrast, SiC devices, compared to silicon-based products, can operate at higher temperatures and voltages, achieving more efficient power conversion and reducing energy loss.

In practical applications, Navitas has significantly improved power density and efficiency through a reference design for CRPS server power supplies that combines SiC power devices and GaN power chips. In July this year, Navitas released an innovative CRPS185 4.5kW AI data center server power supply solution based on its GaNSafe™ high-power GaN power chips and the third-generation fast SiC power devices from GeneSiC™, reportedly achieving a leading power density of 137W/in³ and efficiency of over 97% in the AI data center PSU industry.

The Battle for AI Server Power Supplies Among Leading Silicon Carbide/Gallium Nitride Power Device Manufacturers

A competition in AI server power supplies among SiC/GaN power device manufacturers is already underway. Apart from Navitas, players such as Infineon, ON Semiconductor, EPC, Texas Instruments, GaNext, Corenergy, and Danxitech have entered the fray.

Infineon

In June of this year, Infineon launched a new CoolSiC™ MOSFET 400V series specially developed for AC/DC stages of AI servers. This new series has lower conduction and switching losses compared to existing 650V SiC and Si MOSFETs, increasing the power density of AI server power supplies to over 100W/in³ and achieving an efficiency of 99.5%, which is 0.3 percentage points higher than solutions using 650V SiC MOSFETs.

For the 54V output platform of AI servers, Infineon has developed a 3.3kW PSU dedicated demo board, utilizing Infineon’s CoolGaN™, CoolSiC™, and CoolMOS™ designs to achieve a benchmark overall efficiency of 97.5% and a power density of 96W/in³, meeting the high-power demands of data center PSUs.

At the PCIM Asia 2024 exhibition, an Infineon spokesperson emphasized that reducing data center energy consumption is a pressing need for AI industry development and a primary focus for Infineon. Infineon’s new generation of SiC MOSFET trench gate technology features lower on-resistance, higher switching efficiency, and better reliability, offering significant performance improvements to meet the needs of AI server power supplies.

ON Semiconductor

In response to the “three highs” challenge of PSU output power, conversion efficiency, and power density, ON Semiconductor has launched the latest generation of T10 PowerTrench® series and EliteSiC 650V MOSFET combination, providing a comprehensive solution for data center applications. This solution offers higher efficiency and better thermal performance in a smaller package size.

Among these products, the EliteSiC 650V SiC M3S MOSFET is designed to address data center efficiency challenges, meeting the Open Rack V3 (ORV3) PSU’s peak efficiency requirement of up to 97.5%. The T10 PowerTrench® series enhances thermal performance through optimized packaging technology, addressing the need for high power conversion efficiency and miniaturization in data centers.

EPC

At the PCIM exhibition, EPC showcased samples of humanoid robots using GaN and an autonomous mini-vehicle incorporating EPC’s GaN power devices in its onboard LiDAR components.

In addition to scenarios like humanoid robots and LiDAR, AI data center PSUs are also a key focus area for EPC. In communications with TrendForce Compound Semiconductor, Zhang Shengke, Vice President of EPC’s Reliability Division, stated that EPC’s low-voltage GaN devices can meet all 48V-to-12V server power converter component needs.

TI

As early as 2021, TI had reached a collaboration with server power supply provider Delta to develop efficient, high-power enterprise PSUs for data centers based on TI’s GaN technology and C2000™ MCU real-time control solutions.

TI has invested ten years into GaN technology and C2000™ MCU real-time control solutions. Through collaboration with Delta, TI can utilize innovative semiconductor manufacturing processes to produce silicon-based GaN and integrated circuits, helping companies like Delta create differentiated applications and power data centers worldwide more efficiently.

To lead the industry’s development, both Navitas and Infineon announced their AI data center power supply technology roadmaps, demonstrating their commitment to continuously strengthen their presence in this field.

To meet the exponential power demand increase of AI data centers, Navitas is continuously developing new server power supply platforms, aiming to rapidly elevate power levels from 3kW to 10kW, with a launch expected in Q4 2024.

In addition to its existing 3kW and 3.3kW PSUs, Infineon will soon launch new 8kW and 12kW PSUs to further enhance AI data center efficiency. With the 12kW reference board, Infineon is poised to release the world’s first AI data center PSU to achieve this performance level.

On the domestic front, GaNext has partnered with prestigious universities to jointly develop and mass-produce the industry’s first 3.5kW CRPS fanless server power supply, achieving a high efficiency of 97.6% through two-phase interleaved totem-pole PFC and LLC, with a power density reaching 73.6W/Inch³. Several relevant products from Nengsi Technology have been sampled by leading domestic enterprises and have successfully completed the related reliability tests. Danxitech’s related products have been sampled to leading domestic companies and have completed reliability tests. Corenergy ‘s 1200V GaN products have been sampled by a known server power supplier and are undergoing reliability evaluation. Various major manufacturers are jointly advancing the industrialization of GaN in AI data center PSU applications.

Summing up, power density and efficiency in AI server power supplies continue to improve, focusing on two primary performance indicators for SiC/GaN power device manufacturers. This trend is likely to spur the production of various high-performance products, attracting more SiC/GaN players to enter the market.

Conclusion

The data center power supply sector has become a key focus of leading silicon carbide/gallium nitride manufacturers in recent years. Some manufacturers’ SiC/GaN products have already made progress in the data center power supply market, with the strong rise of AI further driving the development of this market.

As AI technologies evolve and computational power demand continues to grow, the energy efficiency and power density requirements of data centers will become increasingly stringent, imposing higher performance demands on SiC/GaN power device products from various manufacturers.

The continuous development of the SiC and GaN industry, coupled with the thriving AI ecosystem, will result in more intersections between SiC, GaN, and AI. The competition for AI server power supplies among major manufacturers will become increasingly intense.

Though previous rumors suggested that there might be a downward revision of its HBM capacity target due to delayed progress on 12-Hi HBM3e, Samsung’s officials have stated that it will enhance its semiconductor packaging facilities in South Chungcheong Province to increase the production of HBM, according to a report by the Korea Herald.

Samsung aims to complete the new facilities by December 2027, which will feature advanced packaging lines for HBM chips, the Korea Herald report indicates.

However, it is worth noting that the capacity is not built from scratch. According to the report, Samsung will repurpose an underutilized liquid crystal display plant, previously owned by Samsung Display, into a semiconductor fabrication facility. The plant is said to be located in Cheonan, approximately 85 kilometers south of Seoul.

According to the report, Samsung anticipates that the upgraded facilities in Cheonan will help the company regain its competitive edge in the global semiconductor market.

The current HBM leader, SK hynix, is reportedly investing in advanced chip packaging as well, as it aims to capture more demand for HBM in the AI boom.

According to a previous report by Bloomberg, Lee Kang-Wook, currently leading SK Hynix’s packaging research and development, stated that the company is investing over USD 1 billion in South Korea to expand and enhance the final steps of its chip manufacturing process.

On the other hand, Micron stated last year that in response to the growing demand in the AI market, it will continue to invest in advanced processes and packaging technologies to produce HBM products. Micron Taiwan is reportedly the only Micron facility globally with advanced packaging capabilities.

This August, Taiwanese panel maker AUO announced that it will sell three idled manufacturing facilities in Tainan, Southern Taiwan as Micron emerged as the buyer. Micron is also mulling HBM expansion in Malaysia and the U.S.

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• [News] SK hynix and Samsung Reportedly Step up Focus on HBM4 and CXL amid Rising Chinese Competition
• [News] Samsung Reportedly Starts Developing Custom HBM4 for Big CSPs, Eyeing Mass Production by 2025

(Photo credit: Samsung)

According to a report from Liberty Times, citing the Reuters, on Monday (11th), South Korea’s ruling party proposed a special semiconductor bill to provide subsidies for chip manufacturers and remove the national cap on working hours, addressing potential risks stemming from Trump’s threats of tariffs and chip-related measures.

The bill would allow some employees involved in R&D to work longer hours, exempting them from the labor law’s 52-hour weekly work limit, as noted by the report.

The report indicated that as Asia’s fourth-largest economy, South Korea is highly dependent on trade, with the semiconductor industry playing a critical role. According to the Reuters report, chips accounted for 16% of South Korea’s total exports last year.

One of the bill’s sponsors, lawmaker Lee Chul-gyu, stated that China, Japan, Taiwan, and the U.S. are all subsidizing manufacturers amid the semiconductor trade war between the U.S. and China, and this bill will help South Korean companies face these challenges, as indicated by the report from the Reuters.

Last week, according to the report, South Korean President Yoon Suk Yeol cautioned about the risks arising from Trump’s threat to impose steep tariffs on Chinese imports, which could lead Chinese competitors to lower export prices and undermine Korean chip companies in international markets.

The report noted that the ruling party’s bill comes as chipmakers like Samsung Electronics face increasing competition from rivals in Taiwan, China, and other countries.

On the other hand, the report pointed out that the bill proposed by the ruling party still requires approval from the main opposition party to pass.

Samsung’s labor union has also voiced opposition, arguing that the company is using the law as an excuse for its “management failure,” as the report noted.

The report pointed out that, last month, Samsung issued an apology for its disappointing profits, acknowledging that it had fallen behind competitors TSMC and SK Hynix in capitalizing on the surging demand for AI chips.

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• [News] South Korea’s Labor Regulations May Weaken its Semiconductor Competitiveness
• [News] Samsung Reportedly Joins TSMC in Halting 7nm and Below AI Chip Supplies to China

(Photo credit: Samsung)

According to a Reuters report, the Japanese government has proposed a USD 65.1 billion (JPY 10 trillion) plan to boost the domestic chip and AI industry through subsidies and other financial support.

The plan aims to provide support totaling USD 65 billion (JPY 10 trillion) by fiscal 2030, with the goal of strengthening Japan’s control over its chip supply chain in response to potential impacts from U.S.-China trade tensions, as noted in the report.

The report indicated that Japan’s government is set to submit this plan to the next parliamentary session, and the draft includes financial support for mass production of next-generation chips, specifically targeting Rapidus and other AI chip suppliers. The report highlighted that, the government anticipates an economic impact of approximately JPY 160 trillion according to the draft.

Rapidus is scheduled to begin mass production of cutting-edge chips in Hokkaido starting in 2027, in collaboration with IBM and the Belgium-based research organization Imec, as the report pointed out.

According to the report, Japanese Prime Minister Shigeru Ishiba stated that the government would not issue deficit-covering bonds to fund the chip industry support plan. However, detailed information on how the plan will be financed has not been disclosed.

Last year, the Japanese government announced that it would allocate approximately JPY 2 trillion to boost its chip industry, as the report noted.

The latest plan is part of a comprehensive economic package anticipated for Cabinet approval on November 22, calling for a total investment of JPY 50 trillion in the chip industry from both public and private sectors over the next 10 years, according to the report from the Reuters.

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• [News] Japanese Chipmaker Rapidus to Receive EUV Machine by Year-end, Boosting Hokkaido’s Economy
• [News] Sony and Kioxia Reportedly Plan Additional Investments in Chip Foundry Rapidus

(Photo credit: Rapidus)