Power semiconductors gain traction amid AI boom

A DB HiTek plant in Bucheon, Gyeonggi Province / Courtesy of DB HiTek

Foundry companies producing power management integrated circuits (PMICs) are gaining traction amid the rapid growth of artificial intelligence (AI). Demand is diversifying toward data centers and electric vehicles (EVs), while major foundries such as Samsung Electronics and TSMC shift their focus toward advanced processes.

According to domestic 8-inch foundry specialist DB HiTek on Monday, its 2025 revenue and operating profit stood at 1.4 trillion won ($954.85 million) and 277.3 billion won, up 24 percent and 45 percent year-on-year, respectively.

The company said, “the expanded demand in PMICs stemming from AI services has affected its earnings favorably.”

DB HiTek’s revenue fell in 2023 and 2024 due to weak demand for IT devices, before rebounding in 2025 on recovering power semiconductor demand and growth in the AI and EV markets. The company’s average fab utilization rate rose sharply to 96 percent last year from 76 percent in 2024.

A PMIC is a semiconductor that converts, stores, distributes and controls power supplied to electronic devices, playing a critical role in optimizing power consumption. PMICs have traditionally been manufactured on 8-inch wafers — an older generation than the 12-inch wafers used for advanced chips — due to their lower costs and greater efficiency in handling multiple products in smaller volumes.

DB HiTek’s recovery came as major foundries moved to scale back 8-inch wafer production. According to industry officials, Samsung Electronics plans to shut down one of its 8-inch foundries in the latter half of this year, as it increasingly focuses on more profitable and advanced chips. The world’s largest foundry, TSMC, is also scaling back 8-inch wafer production and plans to shut down several related plants.

Despite the industry’s transition, demand for 8-inch wafers continues to rise, driven by data centers, electric vehicles and advanced IT devices that rely on high-voltage processes. Automotive voltage systems are shifting from the conventional 12 volts to 48 volts, and AI data centers are increasing operating voltages from 380 volts to as high as 800 volts to improve power efficiency, requiring technologies capable of reliably handling higher voltages.

Against this backdrop, DB HiTek plans to expand its business through high-voltage process technologies. SK Keyfoundry, a subsidiary of SK hynix, also plans to strengthen its presence in the PMIC market by rolling out new high-voltage processes and working closely with customers on product development.