The next supply squeeze in semiconductors may not come from memory chips, but from the power devices that underpin the AI build-out now reshaping data centres, according to Avnet executive Alex Iuorio.
In a piece published by Semiconductor Digest, Mr Iuorio argued that the shortages seen in high-bandwidth memory and DDR5 could foreshadow tighter conditions in wide bandgap components, particularly silicon carbide and gallium nitride. He pointed to forecasts showing global data-c...
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entre capacity tripling by 2030, with AI-driven racks pushing power requirements towards 100 kW and beyond.
That surge is accelerating a shift in server power design. Silicon MOSFETs are gradually giving way to SiC devices in high-voltage front-end stages and GaN parts in high-frequency conversion blocks, with GaN also being considered for direct 48V conversion closer to the load. The Open Compute Project’s ORv3 specification, which supports racks above 100 kW, is helping to pull those technologies into mainstream infrastructure.
The industry is already preparing for an even more demanding future. Infineon has said it is working with Nvidia on an 800V direct-current reference architecture aimed at racks that may need 1 MW or more, while onsemi is moving to 200mm wafers and has signed long-term supply agreements with customers including Vitesco and Magna. Those steps reflect a broader effort to secure capacity before demand catches up.
The concern is that the market for wide bandgap power semiconductors is still maturing, and supply remains exposed to the same kind of imbalance that has affected memory. A report from S&P Global Market Intelligence last year said the semiconductor supply chain was recovering at different speeds across sectors, with AI-related chips moving far faster than industrial and automotive markets. It also warned that export controls and geopolitical rivalry were distorting supply patterns and adding uncertainty for suppliers with heavy exposure to mainland China.
Other recent industry coverage suggests the pressure is not confined to finished chips. Tom’s Hardware reported that prices for critical materials such as gallium, tungsten, tantalum and molybdenum have climbed sharply amid China’s export restrictions and wider geopolitical disruption, prompting some manufacturers to stockpile inputs and diversify suppliers. That matters because wide bandgap production depends on specialised substrates and epitaxial wafers, where supply is already concentrated.
Eletimes has likewise described the transition to SiC and GaN as turbulent, noting consolidation across the sector even as confidence in the technology remains high. It also said demand from electric vehicles has softened in some regions while AI data centres continue to expand, shifting the centre of gravity in power semiconductor demand.
For equipment makers and data-centre operators, the lesson is straightforward: resilience needs to be built early. As Mr Iuorio noted, companies that lock in supply agreements, widen their vendor base and plan for longer lead times are likely to be better placed if the next component crunch arrives.
Source: Noah Wire Services
