German semiconductor manufacturer Infineon has partnered with Korean electrical equipment manufacturer LS Electric to develop direct current power infrastructure for the AI data center market.

The companies signed a non-binding Memorandum of Understanding (MoU) to collaborate on technologies to enhance energy efficiency, system performance, and scalability in next-generation power infrastructure. The partners stated that the pact was driven by rapid advancements in AI and data center power demand, necessitating new, efficient power distribution technologies.

The partnership will focus on several crucial direct-current infrastructure areas, including power conversion systems for energy storage, solid-state transformers (SSTs), and solid-state circuit breakers (SSCBs). As part of the tie-up, the companies aim to improve power and voltage conversion efficiency while enhancing system stability and reliability.

“High-efficiency DC architectures will play a key role in addressing increased energy demand while improving overall system performance and sustainability. By combining Infineon’s semiconductor expertise with LS Electric’s strength in system integration, we are well-positioned to accelerate the development and deployment of next-generation DC power infrastructure,” said Andreas Weisl, executive vice president and chief sales officer of Industrial & Infrastructure at Infineon.

Under the terms of the MoU, Infineon will support the development of the power infrastructure through its semiconductor portfolio that includes power semiconductors, microcontrollers, and power control solutions. LS Electric will, in turn, leverage its power systems expertise to support system-level integration and implementation.

“Through our collaboration with Infineon, which possesses worldwide-leading power semiconductor technologies, we will strengthen our competitiveness in core DC power infrastructure solutions and will evolve into a total solutions provider leading the global AI data center market and future power markets,” said Kil Young Ahn, vice president and head of Production and R&BD at LS Electric.

LS Electric is the largest player in South Korea’s commercial data center power infrastructure market, holding a 60 percent share. It has signed several deals this year with data center and tech firms. Last October, the firm partnered with Honeywell to develop combined hardware and software solutions that simplify power management and distribution for data centers.

Infineon is one of Europe’s largest semiconductor manufacturers. Spun out of Siemens in 1999, the company specializes in power electronics, automotive microcontrollers, sensors, and security chips.