onsemi Partners with Nvidia to Accelerate AI Data Center Transition to 800VDC Power Solutions

onsemi has partnered with Nvidia to accelerate the transition to 800 VDC power solutions for AI data centers. The collaboration aims to improve efficiency and reduce costs. onsemi's stock rose nearly 3% premarket following the announcement. The shift to 800 VDC power solutions is expected to enhance data center performance and reduce power consumption.

Onsemi (NASDAQ:ON) and Nvidia (NASDAQ:NVDA) have entered a strategic partnership aimed at accelerating the transition to 800 Volt Direct Current (VDC) power solutions for next-generation AI data centers. This collaboration, announced on Tuesday, has seen Onsemi's shares rise nearly 3% premarket. The shift to 800 VDC power solutions is expected to enhance data center performance and reduce power consumption.

The partnership focuses on building a next-generation power distribution system that can efficiently deliver large amounts of energy with minimal losses during voltage conversion. Onsemi's intelligent power portfolio, including solid state transformers, power supply units, 800 VDC distribution, and core power delivery, supported by intelligent monitoring and control, will be key to this endeavor [1].

The collaboration underscores Onsemi's commitment to high-efficiency, high-density power conversion across every stage of the power journey. It also positions Onsemi to capitalize on the growing demand for advanced power solutions in AI data centers, as AI and machine learning technologies continue to evolve [2].

The announcement of this partnership has been well-received by the market, with Onsemi's stock gaining 2.47% to reach $60.11 following the news [2]. This positive response reflects the growing importance of AI infrastructure and the critical role of power management in its development.

The semiconductor industry has been experiencing significant developments, particularly in relation to AI and international trade. The U.S. government has temporarily paused technology export restrictions to China, potentially benefiting semiconductor companies as trade discussions resume [2].

ON Semiconductor's market position has seen a significant 51% increase in the last three months, despite a year-to-date decline of 7% [2]. The recent surge, coupled with the Nvidia collaboration, positions ON Semiconductor as a potentially key player in the AI power management space.

The collaboration aligns with broader government initiatives to support AI development, such as the White House's "Winning the AI Race: America's AI Action Plan," which includes measures to fast-track data center and chip plant permits, launch workforce development programs, and streamline regulations [2].

References
[1] https://www.ainvest.com/news/onsemi-shares-rise-1-8-company-partners-nvidia-advance-800-vdc-power-generation-ai-data-centers-2507-88/
[2] https://theoutpost.ai/news-story/on-semiconductor-and-nvidia-collaborate-on-800-vdc-power-solutions-for-next-gen-ai-data-centers-18353/