- Infineon and LS Electric signed a non-binding MoU on July 10 at LS Electric's R&D campus in Anyang, South Korea, to co-develop DC power infrastructure for AI data centers [1] - The partnership targets three technologies: power conversion systems for energy storage, solid-state transformers, and solid-state circuit breakers — all built on power semiconductors [2] - LS Electric holds roughly 60% market share in South Korea's commercial data center power infrastructure sector [1] - Infineon contributes power semiconductor and control technology while LS Electric leads system design, integration, and commercialization [3] - No financial terms, product timelines, or specific voltage levels were disclosed in the announcement
[1] Infineon Technologies and South Korea's LS Electric have signed a memorandum of understanding to jointly develop next-generation direct current power infrastructure for AI data centers and power grids. The non-binding MoU was signed July 10 at LS Electric's R&D campus in Anyang, Gyeonggi Province [1] [2].
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 say these DC technologies are designed to reduce power-conversion steps and minimize energy losses in ultra-high-density environments like AI data centers [2] [3].
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. No financial terms or product development timelines were disclosed [1] [3].
The Technology Push #
The three technologies targeted by the MoU address different points in the DC power chain. Power conversion systems for energy storage 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 can be smaller, more efficient, and capable of bidirectional power flow. Solid-state circuit breakers offer faster fault isolation than mechanical breakers — a critical requirement in DC architectures where there is no natural zero-crossing to extinguish arcs [1] [2].
The shift toward DC power distribution inside data centers has been a recurring theme in high-density AI deployments. Traditional AC 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 introducing losses. DC architectures aim to eliminate several of those steps [1].
The Partners #
Infineon Technologies, headquartered in Munich, is the world's largest power semiconductor manufacturer by revenue. The company's Industrial & Infrastructure division supplies silicon carbide (SiC) and silicon IGBT modules used in power conversion across energy, industrial, and data center applications. Infineon trades on the Deutsche Börse (IFX.DE) and OTC in the U.S. (IFNNY), with a market capitalization of approximately $103 billion [4].
LS Electric, listed on the Korea Exchange (010120.KS), is a major South Korean electrical equipment manufacturer that claims 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 [1] [2].
Market Context #
The MoU arrives as data center operators globally are grappling with power density requirements driven by GPU-heavy AI training and inference clusters. Rack densities in AI-optimized facilities routinely exceed 40 kW per rack, with some deployments pushing past 100 kW — levels that strain traditional AC power distribution architectures and create strong incentives for more efficient DC alternatives.
The partnership also 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 power infrastructure [3].
What's Not in the Deal #
The MoU is non-binding, with no disclosed financial commitments, production targets, or commercialization timeline. No specific voltage levels, efficiency benchmarks, or target customers were named. The agreement 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 [1] [2].
Further sources #
[1] Data Center Dynamics, 'Infineon, LS Electric partner on DC power infrastructure… ↗
[2] The Elec, 'LS ELECTRIC, Infineon Partner to Develop DC Power Technologies for A… ↗ [3] The Korea Times, 'LS Electric, Infineon team up to power AI data center boom,' … ↗
[4] FMP stock quote for IFNNY, accessed July 13, 2026 ↗ The stories that matter, in one email. Free — unsubscribe anytime.