▶ AI data centers spark 800V HVDC rush for Taiwan lead frame suppliers

• The shift toward 800V high-voltage direct current (HVDC) power architectures in AI data centers is gathering pace, driving a surge in demand for power semiconductors.

• As a result, shipments at Taiwanese lead frame makers SDI Corporation and Jih Lin Technology are climbing, with both companies expected to deliver double-digit revenue growth in 2026.

• Lead frame suppliers note that demand for AI server power-management systems has risen sharply in recent months, with orders from global IDM customers such as Infineon and STMicroelectronics also expanding.

• Whereas automotive demand had previously been the key growth driver, 2026 is shaping up to be the inflection point at which servers take over that role, marking a structural shift in lead frame demand.

• Lead frame makers explain that the automotive-grade product expertise they have built up over years is proving to be a critical foundation for entering the AI server power-management market, since automotive and AI servers share similar requirements in terms of high-power handling, thermal dissipation, and reliability.

• SDI notes that, in the near term, the pickup in orders for AI power management is running ahead of expectations. In particular, its high-power lead frame products for HVDC applications have moved beyond the R&D stage into volume production, with more than 40 custom projects currently underway.

• SDI's AI-related revenue accounted for only around 1% of the total in 2025, but is set to rise quickly to 6% in the first quarter of 2026. The company also expects the revenue contribution from HVDC-related projects to ramp up in earnest from the second half of 2026.

• Jih Lin notes that, supported by a recovery in the automotive market and expanding AI server demand, utilization has risen to the 70–75% range. It also expects 2026 revenue to grow quarter over quarter, making its full-year target of NT$6 billion achievable.

• Jih Lin's AI-related revenue stood at roughly 5–7% of the total in 2025, and the market expects that share to surpass 10% by 2027.

• The company is expanding into the AI power-management market on the strength of its integrated stamping-and-etching capabilities, and continues to develop 40–50 new products each year.

• It is also applying the double-sided cooling and thermal-dissipation technologies previously used in automotive modules to its AI server products, and says it is receiving a positive response at the customer evaluation stage.

• Overall, Taiwanese lead frame makers emphasize that order visibility is improving significantly, underpinned by expanding AI demand and long-standing partnerships with IDM and OSAT customers.

• Players with high automotive exposure expect the expansion of ADAS and the vehicle electrification trend to likewise drive a recovery in automotive semiconductor demand.

• The industry views the inventory correction phase as effectively complete, and sees a strong likelihood that shipment momentum will build further as 2026 progresses into the second half.

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