Infineon and LS Electric sign MoU to co-develop modular DC power systems for AI data centers.
Infineon Technologies and South Korea's LS Electric have signed a non-binding memorandum of understanding to jointly develop next-generation direct current power infrastructure for AI data centers and power grids. The MoU was signed July 10 at LS Electric's R&D campus in Anyang, Gyeonggi Province.
The partnership centers on three power semiconductor-based technologies: power conversion systems (PCS) for energy storage systems, solid-state transformers (SSTs), and solid-state circuit breakers (SSCBs). The companies position these DC technologies as a means to reduce power-conversion steps and minimize energy losses in ultra-high-density environments such as AI data centers. Under the agreement, Infineon will develop the underlying power semiconductors, microcontrollers, and power control solutions, while LS Electric will lead system-level design, integration, and commercialization.
Each technology addresses a distinct segment of the DC power chain. Power conversion systems handle the interface between battery storage and the data center load. Solid-state transformers replace traditional copper-and-iron transformers with semiconductor-based alternatives that are smaller, more efficient, and capable of bidirectional power flow. Solid-state circuit breakers enable faster fault isolation than mechanical breakers—a critical requirement in DC architectures where there is no natural zero-crossing to extinguish arcs.
Traditional AC power distribution requires multiple conversion stages: from utility AC to DC at the UPS, back to AC for distribution, then back to DC at the server power supply. Each stage introduces losses. DC architectures aim to eliminate several of these steps, making them increasingly attractive as data center operators contend with power densities exceeding 40 kW per rack, with some deployments approaching 100 kW.
Infineon Technologies, headquartered in Munich, is the world's largest power semiconductor manufacturer by revenue. The Industrial & Infrastructure division supplies silicon carbide and silicon IGBT modules for power conversion across energy, industrial, and data center applications. Infineon trades on the Deutsche Börse (IFX.DE) and over-the-counter in the U.S. (IFNNY), with a market capitalization of approximately $103 billion.
LS Electric, listed on the Korea Exchange (010120.KS), is a major South Korean electrical equipment manufacturer with approximately 60% market share in South Korea's commercial data center power infrastructure sector. The company previously partnered with Honeywell in October 2025 on data center-related initiatives.
The partnership reflects the broader trend of semiconductor vendors moving up the stack from component sales to system-level co-development with electrical equipment manufacturers. For LS Electric, the deal provides access to Infineon's latest power semiconductor technology; for Infineon, it offers a path to influence system architectures and expand its addressable market in data center infrastructure.
The MoU carries no disclosed financial commitments, production targets, commercialization timeline, specific voltage levels, efficiency benchmarks, or named target customers. It represents a statement of intent rather than a binding development contract, and its commercial impact will depend on whether the partnership progresses to concrete product development and orders.