Semiconductor maker Onsemi has introduced a new technology it calls its “embedded power platform” (EPP), and Japanese automaker Subaru is already evaluating it for use in future electrified vehicles. The announcement highlights a growing challenge across two of the tech world's hottest sectors: artificial intelligence (AI) data centers and electric vehicles (EVs) both need to deliver more power in tighter spaces, and the traditional approach to power electronics is hitting its limits.
What is the embedded power platform?
Onsemi, a company that specializes in power management chips, says its EPP combines multiple tiny silicon “dies” — the individual chips that make up a semiconductor device — into a single package. Instead of using several separate components to handle different power tasks, designers can now put them all together in one unit. This consolidation is meant to simplify the design process, reduce the physical space required, and improve heat management and reliability.
For engineers, this is a significant shift. In both AI data centers and EVs, power electronics are becoming more complex as systems demand higher voltage and current. The EPP approach could cut down on the number of parts, reduce wiring, and make it easier to manage the heat that comes with high-density power delivery.
Why Subaru is interested
Subaru's engagement with Onsemi is an early sign that the platform may have real-world appeal. The automaker is reportedly receiving engineering samples to test how the technology could simplify power electronics in its future electrified vehicles. While Subaru has been slower than some rivals to embrace full electrification, it has committed to expanding its lineup of hybrid and electric models over the coming years.
For Onsemi, having a major automaker as a potential customer is a vote of confidence. The company is betting that its EPP can become a standard building block not just for cars, but also for the massive power-hungry data centers that underpin AI development. The same fundamental problem — delivering more power in less space — applies to both.
The bigger picture: power density is the bottleneck
AI data centers are consuming electricity at an unprecedented rate, and the power infrastructure that feeds them is struggling to keep up. Similarly, EVs need to pack more power into their onboard electronics to improve range and charging speed. In both cases, the limiting factor is often not the battery or the processor, but the power delivery system that connects them.
Onsemi's EPP is designed to address that bottleneck. By integrating multiple functions into one device, it can reduce the physical footprint of power electronics, improve efficiency, and potentially lower costs. That could make it attractive to companies looking to scale up AI infrastructure or bring new EV models to market faster.
The move also reflects a broader trend in the semiconductor industry: as Moore's Law slows, chipmakers are finding new ways to add value through packaging and integration rather than just shrinking transistors. Advanced packaging techniques, like the ones used in EPP, are becoming a key differentiator.
What it means for investors
For everyday investors, the news is a reminder that the AI boom and the EV transition are not just about the companies that make the final products. The companies that supply the underlying components — like power chips — stand to benefit if demand for high-density power solutions continues to grow.
Onsemi is one of several players in the power semiconductor space, competing with the likes of Infineon, Texas Instruments, and STMicroelectronics. Its success with EPP will depend on how quickly it can win design wins with major customers like Subaru, and whether the platform can deliver on its promises of simplicity and reliability.
Investors should also note that the announcement comes at a time when the broader semiconductor sector is under pressure. Recent concerns about an AI slowdown have hit chipmakers' stocks, as seen in European tech stocks sliding on AI slowdown worries. That backdrop makes it all the more important for companies like Onsemi to show tangible progress on new products.
For Subaru, the partnership is a low-risk way to explore new technology without committing to a full-scale rollout. The automaker is likely to evaluate the EPP's performance in real-world conditions before deciding whether to use it in production vehicles. That process can take years, so investors shouldn't expect immediate revenue from this collaboration.
What to watch next
The key milestones to watch are whether Onsemi can convert its early engagements into production contracts, and how quickly the EPP gains traction in the AI data center market. The company has not disclosed specific financial targets for the platform, but it has signaled that it sees this as a growth area.
For now, the Subaru test drive is a positive signal, but it's just one step in a long journey. As with any new technology, the real test will be in the field — and in the order books.
