Soochow: Three power supply upgrades expand the value of AI chip inductors.

Soochow released a research report stating that rising power density and supply current in AI servers are amplifying the value of AI chip inductors. The rapid increase in single-GPU power consumption is driving up both the volume and price of AI chip inductors per system (rack). The global AI chip inductor market grew from RMB 1.1 billion in 2020 to RMB 5.8 billion in 2025, and is projected to reach RMB 26.9 billion by 2030. In emerging tracks, domestic substitution is rapidly catching up, and TLVR is expected to significantly enhance inductor value. On investment recommendations, rising power density and supply current in AI servers are amplifying the value of AI chip inductors. Soochow's main points are as follows: Inductors: Core Passive Components for Current Stabilization AI chip inductors are primarily used in tertiary power supply scenarios. Inductors are one of the three fundamental passive components and the second-largest component after capacitors. By downstream application, they can be divided into traditional inductors used in consumer electronics, automotive, photovoltaic and other fields, and AI chip inductors used in tertiary power supplies. In data center scenarios, traditional wound-wire inductors can be used in primary and secondary power supplies (equipment room/motherboard power supply), while AI chip inductors can be used in the power supply circuits of tertiary power supplies for high-performance AI accelerator chips such as GPUs, ASICs and FPGAs. They also support optical modules and high-speed memory chips, and can meet the power supply needs of edge-side hardware AI chips. Rapid Increase in Single-GPU Power Consumption Drives Up Both Volume and Price of AI Chip Inductors per System (Rack) NVIDIA's single-GPU power consumption has risen to approximately 1800-2300W for the current Rubin series. Higher supply current requires an increased number of power phases and a gradual shift toward VPD, with each power phase requiring one chip inductor. At the same time, higher current density and thermal requirements are pushing AI chip inductors toward higher rated current, superior high-frequency performance and higher reliability, creating inherent demands on upstream alloy magnetic powder quality and downstream advanced processes such as TLVR and copper-iron co-firing. In the future, TLVR inductor unit prices may reach 3-5 times those of ordinary inductors, driving up both volume and price of chip inductors per system (rack). It is estimated that the next-generation VR 200 NVL72 single rack will contain 6,000-7,000 chip inductors, with a calculated value of tens of thousands of RMB. With surging computing power demand and accelerated deployment of high-performance chips and next-generation memory, the global AI chip inductor market grew from RMB 1.1 billion in 2020 to RMB 5.8 billion in 2025, with a CAGR of 38.2%; it is projected to reach RMB 26.9 billion by 2030, with a CAGR of 36.0%. Traditional Inductors Dominated by Japan and Taiwan; Emerging Tracks See Rapid Domestic Substitution; TLVR Expected to Significantly Enhance Inductor Value The traditional inductor competitive landscape is relatively fragmented with limited growth, and Japanese and Taiwanese manufacturers such as TDK, Murata and Chilisin hold absolute dominance. AI chip inductor gross margins can be 10-30 percentage points higher than traditional inductors, offering strong profitability. Against the backdrop of AI server growth, domestic manufacturers are rapidly entering the AI chip inductor market, with Sunlord and POCO already among the global top five. The short product lifecycle and rapid downstream iteration of chip inductors have prompted domestic manufacturers to accelerate investment in high-end capacity such as TLVR and chip inductors to enter major supply chains. With capacity influx and intensifying industry competition, unit prices of current mainstream hot-pressed integrated inductors are under pressure, while next-generation TLVR inductors, with higher technical difficulty, are expected to see unit price increases, providing additional value increments. Magnetic Materials and Customer Relationships as Competitive Barriers for Chip Inductors; Focus on Technological Breakthroughs and Customer Development Capabilities Magnetic materials currently account for 50%-70% of inductor raw material costs. High-end magnetic powders such as iron-nickel and amorphous have broad application prospects but are technically difficult and expensive. Magnetic powder formulations can reduce downstream inductor process requirements and bypass mass production yield issues of new technologies such as copper-iron co-firing. The inductor manufacturing segment requires long customer certification times and has strong customer stickiness. AI server manufacturers have highly customized part number requirements, necessitating testing, validation and pre-research processes with suppliers. Risk warnings: Slower AI capital expenditure growth, technology route substitution, intensifying price competition, raw material price fluctuations, geopolitical and trade frictions, capacity ramp-up below expectations, customer concentration risk.