Littelfuse Inc

LFUS

Littelfuse Inc

@DavidWisniewski001
• 3 months ago

Why is Little Fuse only at a 5.62% Gross Profit Margin

So, I started looking at Little Fuse because despite the feverish demand for GPUs going into AI data centers Little Fuse is closing their IXYs facility in California. This is very concerning considering

  • AI servers (like NVIDIA’s Blackwell/NVL72) are moving to a 48V DC Busbar architecture (meaning they need to convert AC to DC)

  • AI data centers need static transfer switches

  • If there is a battery back up system then they will need more power conversion equipment.

Lets start with Static Switches (STS) Units.

For my calculations I am assuming we are only using NVIDIA`s Blackwell NVL72.

Data Centers

Data Center Size: Small Cluster, Blackwell Racks 20 Racks (~2.4 MW),STS required: 20

Data Center Size: Mid Cluster, Blackwell Racks 100 Racks (~12MW),STS required: 100

Data Center Size: Large Cluster, Blackwell Racks 1000 Racks (~120MW),STS required: 1000

A basic STS unit has 4 SCRs in it. Each SCR retails for ~ $250.

If Little Fuse is absorbing the demand for static switches I would expect their profits to be much higher and for them to be wanting to open up more facilities to meet demand. Yet, they are closing IXYS locations.

Bridge Rectifiers 6 Pulse have 6 SCRs

A 12 Pulse Rectifier has 12 SCRs.

If data centers have a BES system they will need more power semi conductors.

So, my question is, who is absorbing the overall market demand for Power Semi-Conductors? Since there is not only increased demand there is also there is the stable demand still present in the US for things such as drives, inverters, military equipment, and etc.

If there is a party it is almost painfully obvious Little Fuse was not invited.

If I was going to go wild I may use the N4650EA450 SCR doing a quick search through their website. However, an interesting side quest for someone would be to call up someone who markets themselves as making STS systems or being in the Data Center Space and see what SCRs or Modules they are actually using. I would imagine it is not a Little Fuse product.

If I had to bet it is a Chinese competitor product since the IXYS Little Fuse brand is way more expensive then something from DYNEX. Rockwell needs to eat that premium being they supply to the US military, and are used in critical infrastructure projects such as ports, nuclear power plants, etc...