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ASE Introduces powerSiP™ for Transformative Power Delivery That Increases Power Efficiencies by 50% in AI and Data Center Applications

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Advanced Semiconductor Engineering (ASE) has introduced powerSiP™, a new power delivery platform aimed at enhancing power efficiency for AI and data centers. The powerSiP™ technology offers a 50% increase in current density and reduces routing power loss by 50%, contributing to a smaller footprint and greater efficiency. The platform aids in addressing the high energy demands of AI and data centers, important as data center energy consumption is set to rise significantly. The powerSiP™ solution provides multi-stage voltage regulation directly under SoCs and chiplets, reducing impedance and improving system efficiency. This innovation aligns with ASE's sustainability goals and commitment to efficient power solutions.

Positive
  • 50% increase in current density from 0.4A/mm² to 0.6A/mm².
  • 50% reduction in routing power loss from 12% to 6%.
  • 25% smaller footprint compared to traditional configurations.
  • Enhances overall system efficiency and power density.
  • Addresses growing energy demands in AI and data centers.
  • Supports sustainability and reduction in carbon emissions.
  • Provides multi-stage voltage regulation, reducing impedance.
  • Available immediately, aligning with industry roadmaps.
Negative
  • Potential high cost of implementation for customers.
  • Dependence on market adoption and AI growth trends.
  • Risk of competitors developing similar or superior solutions.
  • Initial development and integration may require significant resources.

Insights

Advanced Semiconductor Engineering (ASE) has introduced a new power delivery platform called powerSiP™, designed to enhance power efficiency in AI and data center applications. This innovation is noteworthy for investors because it addresses a critical issue: the high energy consumption of data centers, which is expected to rise significantly in the coming years. The financial implications are multi-faceted.

First, ASE’s ability to reduce power loss and increase current density positions it as a strong player in the growing AI and data center markets. Improved efficiency can translate to cost savings for data centers, making ASE's product appealing to a broad spectrum of customers. With data centers' power consumption projected to double by 2026, demand for such innovative solutions is poised to surge.

Second, ASE’s commitment to sustainability aligns with global trends toward greener technology. This could attract ESG-focused investors and potentially result in higher valuations. Overall, ASE’s introduction of powerSiP™ can be seen as a strategic move that enhances its competitive edge and market positioning.

The short-term impact may involve increased R&D expenses and marketing costs to promote the new platform, which could affect profit margins temporarily. However, the long-term benefits, including stronger market share and customer loyalty, are promising. Investors should monitor the adoption rate of powerSiP™ and any subsequent financial performance metrics.

ASE's powerSiP™ platform is an impressive breakthrough in the realm of power delivery systems, particularly for AI and data centers. The platform's capability to increase current density by 50% and reduce routing power loss by the same percentage is substantial. This innovation not only enhances power efficiency but also mitigates the heat dissipation issues that plague data centers.

The vertical integration of the voltage regulator module (VRM) within the powerSiP™ system is a key feature. By placing the voltage regulator directly under the SoC and chiplets, the platform shortens the power delivery path, reducing impedance and improving overall system performance. This means that data centers can achieve higher computational power without a proportional increase in energy consumption.

Another aspect is the system footprint. By achieving a 25% reduction in footprint compared to traditional configurations, ASE is offering a solution that not only saves energy but also optimizes space within data centers, a important factor as facilities strive to maximize their operational capacity.

In essence, powerSiP™ represents a significant technological advancement that could set a new standard for power management in high-performance computing environments.

The launch of ASE's powerSiP™ has notable implications for the competitive landscape of the semiconductor and data center markets. As data centers continue to face rising operational costs due to increased power consumption, ASE's solution provides a much-needed efficiency boost. The market for AI and high-performance computing (HPC) is growing rapidly and powerSiP™ could capture a significant share of this expanding market.

The timing of this innovation is particularly strategic. With data center energy consumption projected to double by 2026, solutions that enhance power efficiency are not just advantageous—they are essential. ASE's powerSiP™ platform could thus become a critical component for data center operators looking to manage costs and improve performance.

Moreover, ASE's commitment to sustainability through powerSiP™ aligns with broader industry trends, including regulatory pressures for lower carbon footprints and energy-efficient technologies. This alignment can enhance ASE's brand value and reputation among customers and stakeholders focused on sustainable practices.

For retail investors, understanding that ASE is addressing a fundamental and growing problem in a burgeoning industry can help in assessing the long-term potential of their investment in the company.

SUNNYVALE, Calif.--(BUSINESS WIRE)-- Advanced Semiconductor Engineering, Inc. (ASE), a member of ASE Technology Holding Co., Ltd. (NYSE: ASX) (TAIEX: 3711), today announced that it has introduced powerSiP™, a transformative power delivery platform designed to reduce signal and transmission loss while addressing current density challenges. ASE’s powerSiP™ platform today enables a vertically integrated multi-stage voltage regulator module (VRM) for higher system efficiency and lower power consumption and delivers a reduced footprint that is 25% smaller when compared to traditional side-by-side configurations. The powerSiP™ technology innovation allows a 50% increase in current density from 0.4A/mm² to 0.6A/mm² and a decrease in routing power loss from 12% to 6%, signifying a 50% reduction over a side-by-side configuration. With the Artificial Intelligence (AI) market size, reach, and impact still in early stage, ASE is innovating to meet related data center requirements, performance expectations, and power improvements, offered through powerSiP™.

The introduction of powerSiP™ corresponds with the emergence of compute power and cooling as the two most energy-intensive processes within data centers today. According to the International Energy Agency (IEA), data centers consumed 460 terawatt-hours (TWh) in 2022, representing 2% of all global electricity usage, with this set to rise to 1,000 terawatt-hours (TWh), or 8%, by 2026. This surge in energy consumption is being fueled by the ongoing proliferation of AI, which relies on powerful, yet power-draining, CPU, GPU, memory and disk systems for function, performance, and lowest possible latency. Costs have become prohibitive, and demand for innovation to counteract extreme inefficiencies in power conversion and cooling has never been greater.

Today, high voltage power delivery is brought into modern data center facilities, and it is converted to lower voltage in multiple stages ahead of microprocessor utilization. Each power conversion stage in the data center power delivery network (PDN) has high efficiency in the mid to high 90% range. However, at higher power levels, the routing losses in the path from the last DC-to-DC converter on the power delivery platform to the microprocessor start to dominate and can impact overall system efficiency. Typical systems use a single stage voltage reduction from the platform to the microprocessor and bring in power at a higher voltage to the microprocessor using the VRM. ASE’s powerSiP™ platform can help customers enable a multi-stage VRM-based PDN solution.

“The powerSiP™ platform provides an option to place the voltage regulator directly under the SoC and chiplets, and vertical integration allows a large current supply at a short power delivery path,” said YE Yeh, Vice President of Research & Development, ASE. “This successfully reduces impedance in the power delivery network thus improving system performance and functionality while simultaneously increasing overall efficiency and power density.”

“System efficiency is a top priority for architects, particularly as the world explores ways to address the growing global demand for electricity at the same time as driving down carbon emissions,” commented Patricia MacLeod, Senior Director of Corporate Communications & Industry Partnerships at ASE. “Our powerSiP™ platform signifies another step forward for ASE in our endeavor to help enable more efficient power solutions and greener data center energy utilization that aligns with our corporate commitment to sustainability.”

“AI is permeating our lives incrementally and profoundly reshaping knowledge work, business function, and human experience, supported by powerful high performance computational systems that are being optimized for efficiency within today’s data centers,” added Yin Chang, ASE’s Senior Vice President of Sales & Marketing. “Advanced packaging is playing a pivotal role, and this is the impetus behind the introduction of our powerSiP™ platform to support our customers. Offering unique advanced packaging structures and an innovative technology roadmap, powerSiP™ is evolving to deliver crucial data center system requirements including power and performance efficiencies for AI and HPC applications.”

Available now, ASE’s powerSiP™ is a transformative power delivery platform that will expand in alignment with industry roadmaps and application requirements.

Supporting resources

  • For more about powerSiP™, please visit: https://ase.aseglobal.com/powersip/
  • Visit the ASE Exhibition at ECTC 2024 in Denver, CO, May 28-29, 2024
  • Follow us on our LinkedIn page for targeted updates and announcements @aseglobal
  • Follow us on Twitter @aseglobal

About ASE, Inc.

ASE, Inc. is the leading global provider of semiconductor manufacturing services in assembly and test. Alongside a broad portfolio of established assembly and test technologies, ASE is also delivering innovative VIPack™, advanced packaging, and system-in-package solutions to meet growth momentum across a broad range of end markets, including AI, Automotive, 5G, High-Performance Computing, and more. To learn about our advances in SiP, Fanout, MEMS & Sensor, Flip Chip, and 2.5D, 3D & TSV technologies, all ultimately geared towards applications to improve lifestyle and efficiency, please visit: aseglobal.com or follow us on LinkedIn & X: @aseglobal.

Media:

North America & Europe: Patricia MacLeod +1.408.314.9740 patricia.macleod@aseus.com

Asia Pacific: Jennifer Yuen +65 97501975 jennifer.yuen@aseus.com

Source: Advanced Semiconductor Engineering, Inc.

FAQ

What is ASE's powerSiP™?

ASE's powerSiP™ is a new power delivery platform designed to enhance power efficiency, increase current density, and reduce routing power loss in AI and data center applications.

How does powerSiP™ improve efficiency in AI and data centers?

The powerSiP™ platform increases current density by 50% and reduces routing power loss by 50%, contributing to a smaller footprint and better system efficiency.

What is the footprint reduction achieved by powerSiP™?

The powerSiP™ platform reduces the footprint by 25% compared to traditional side-by-side configurations.

Why is powerSiP™ important for data centers?

PowerSiP™ addresses the high energy consumption in data centers, which is expected to rise significantly, and supports more efficient power solutions.

When will ASE's powerSiP™ be available?

ASE's powerSiP™ is available immediately.

How does powerSiP™ align with sustainability goals?

PowerSiP™ supports sustainability by improving power efficiency and reducing carbon emissions in data center operations.

ASE Technology Holding Co., Ltd.

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