Delta Electronics (2308.TW): Taiwan’s Fourth-Largest Weighted Stock with Global Power Ambitions
Founded in 1971, Delta Electronics began as a manufacturer of TV coils and electronic components, starting with wound magnetic components. Over time, the company expanded into magnetic and thermal components. Leveraging its strengths in power conversion and thermal management, Delta entered the power supply market and is now the world’s largest provider of switching power supplies.
Business Overview
Delta operates in four core business segments, as shown below:
| Segment | Subcategory | Products |
|---|---|---|
| Power and Components | Power Supplies | Switching power supplies, power adapters, UPS, etc. |
| Passive Components | Chokes, magnetic components, resistors, etc. | |
| Fans & Thermal Solutions | Cooling fans, heat sinks, vapor chambers, etc. | |
| Transportation | EV Powertrain Systems & Solutions | Onboard chargers, auxiliary inverters, drive motors, etc. |
| Automation | Industrial Automation | Fully integrated automation systems |
| Building Automation | Smart O&M platforms, access control, security systems, etc. | |
| Infrastructure | ICT Infrastructure | Power supplies, controllers, racks, etc. |
| Energy Infrastructure | EV charging equipment, solar inverters, energy storage systems |
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Production Optimization & Global Footprint
- Taiwan locations: Neihu (HQ), Taoyuan, Taichung, Tainan
- Key overseas manufacturing sites: China (Dongguan, Suzhou), Thailand, India. China still accounts for around 50% of production.
To manage global supply chain restructuring and geopolitical risks, Delta is actively shifting capacity. While China remains a major base, the company is accelerating development of a second headquarters in Thailand and building a backup data center there. India is also emerging as a key production and market entry point.
Major Clients & Competitors
- Global clients: Apple, HP, IBM, Microsoft, Sony
- Key Taiwanese rivals: Lite-On Technology (2301.TW), AcBel Polytech (6282.TW), Chicony Power Technology (6412.TW)
Peer Comparison
| Company | Delta Electronics (2308.TW) | Lite-On Technology (2301.TW) |
|---|---|---|
| Market Cap | NT$1.667 trillion | NT$321.9 billion |
| 2Q25 Product Mix | Power & Components: 52%, Transportation: 9%, Automation: 11%, Infrastructure: 28% | IT & Consumer Electronics: 40%, Cloud & IoT: 41%, Optoelectronics: 19% |
| Sales by Region | U.S.: 25%, China: 23%, Taiwan: 14%, Others: 38% | Americas: 27%, Europe: 11%, Asia: 61%, Others: 1% |
| 2Q25 Gross Margin | 35.5% | 22.1% |
| AI Server Power Market Share | Over 60% | ~30% |
| Competitive Advantages | Strong in system integration, vertical integration, and localization; sole supplier of Nvidia DC-DC modules | Strong value in high-wattage PSUs and fast-charging; mature liquid cooling; sole supplier of Azure AI cabinet power |
Growth Outlook
AI Data Center Boom Driving Power Demand
As AI models scale up, power consumption per AI server has surged from 5.5kW to as high as 12kW–20kW. For example, by 2026, the Vera Rubin platform is expected to require over 200kW per rack, up from 140kW.
Downtime due to power shortfalls is rising. According to Uptime Institute, 16% of such outages cost cloud providers over $1 million per incident, prompting rapid investment in power upgrades, including HVDC (High Voltage DC), BBU (Battery Backup Units), and UPS.
Traditional AC systems can’t meet high-density needs. HVDC offers centralized, efficient delivery and, when paired with BBUs, reduces energy loss, thermal load, and simplifies maintenance—making it a new standard for AI data centers. Notably, Nvidia’s new GB300 platform has made BBUs optional, but Delta’s full suite of HVDC and BBU solutions is poised to benefit significantly.
Delta commands over 60% market share in AI server power, offering full HVDC integration. Its one-stop system converts 33kV AC to 0.65V DC at up to 92.1% efficiency—over 4% better than traditional solutions.
New products are also boosting profits: With the Nvidia GB200/GB300 platform transition, 5.5kW PSUs are replacing older 3.3kW models, raising ASPs and margins. Delta plans to capitalize on the 4Q25 B300 inventory build-up by launching 12kW PSUs—doubling ASPs over 8kW units—and rolling out 50V power cabinets.
Per-server revenue is rising sharply, from $43,800 with GB200 to $90,600 for GB300. By 2027, with Rubin Ultra’s 800V HVDC and POWER RACK systems, that figure may hit $171,000, supporting revenue scale and customer retention.
| Feature | GB200 | GB300 | Rubin |
|---|---|---|---|
| Power Architecture | UPS | UPS + HVDC | 800V HVDC |
| Server PSU Power | 5.5kW | 5.5kW | 8 / 12kW |
| BBU | Optional | Standard | Standard |
| Super Capacitor | Optional | Standard | Standard |
| Cabinet Type | In-rack | External | External |
| Cooling | Cold plate liquid | Cold plate liquid | Cold plate or immersion |
| Low Voltage Gear | AC breakers, relays | AC & DC breakers, fuses, relays | Solid-state DC breakers, HVDC relays |
Strong Growth Potential in Panama Power & SST
Panama Power, co-developed by Delta and Alibaba, replaces traditional transformers with phase-shifting transformers, reducing downstream fault current and space usage while improving power efficiency.
Compared to traditional setups, Panama Power reduces equipment and construction needs by 40%, cuts floor space by more than 50%, and reaches 98.5% module efficiency—particularly at light loads (20–30%). Already adopted by Alibaba, China Mobile, and China Unicom, it’s expected to drive Delta’s mid-term growth.
Delta is also investing in next-gen Solid-State Transformers (SST), using SiC and GaN semiconductors for high-frequency power conversion. SSTs convert 13.8kV AC directly to 800V DC, skipping multiple conversion steps for >98% efficiency.
SSTs also natively support GW-level renewable integration, power quality control, and microgrid compatibility—ideal for data center + green energy integration. As wide-bandgap semiconductor costs fall and CSPs increase investments, Delta is well-positioned to lead the SST market, leveraging its Panama Power foundation.
| System | UPS | 240V/336V HVDC | Panama Power | SST |
|---|---|---|---|---|
| Redundancy | 2N or RR | 1 Grid + 1 DC; or 2N HVDC | 2N DC or 1 Grid + 1 HVDC | Modular N+1, multi-port incl. storage/renewables |
| Availability | Moderate | High | Very High | Very High |
| Efficiency | 93% | 95% | 97.5% | 98.3% |
| Space (2.2MW IT) | 310㎡ | 300㎡ | 110㎡ | ~⅓ of HVDC |
| Build Time | ~12 months | ~6 months | ~3 months | Expected <3 months |
| System Cost (NT$/W) | ~3 | ~2 | ~1.3 | Higher than HVDC/Panama |
| Advantages | Mature ecosystem | Simpler & cheaper | Highest efficiency, lowest TCO | Bi-directional, modular, smart routing, green |
| Drawbacks | Low scalability, large footprint | Less mature, fewer use cases | Early-stage ecosystem | Costly, early tech, not diesel-compatible |
Liquid Cooling Scaling Rapidly
Delta’s liquid cooling portfolio includes cold plates, manifolds, CDUs, and Sidecar systems, with Sidecar as the main shipping product and the company already a major supplier.
Though CDU shipments are still small, demand is rising as data centers shift to liquid-to-liquid systems. Delta’s closed-loop CDU integrates custom pumps and heat exchangers, improving space and energy efficiency.
Clients include Microsoft, Meta, and Oracle. As these products carry higher ASPs and margins than traditional cooling, scale-up should meaningfully lift both revenue and profitability.
Tariff Considerations
Delta uses FOB shipping for U.S. clients, meaning tariffs are generally borne by customers.
While core components like heat sinks still rely on China due to cost and capacity, the company mitigates tariffs by assembling parts in Taiwan and completing final assembly in the U.S.
If Thai tariffs prove too high, Delta may halt production there, also citing tech capability concerns. Overall, the company sees limited impact from tariffs thanks to its flexible supply chain and customer pricing structure.
Conclusion
In the near term, only AI-related products are outperforming. The 4Q25 B300 inventory ramp, 12kW PSU, and 50V cabinet production are expected to raise ASPs and margins, while liquid cooling volumes should boost profitability.
Over the mid-term, as GB300 and Rubin Ultra platforms roll out, per-unit server value may double, enhancing order stickiness and profit structure. Panama Power’s deeper China adoption also offers incremental growth.
Although an AI CapEx slowdown remains a risk, recent upward revisions from U.S. CSPs suggest AI data center demand will last through at least 2H26. Overall outlook remains positive.
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