Recent developments in power electronics foresee the extensive use of new-generation low-voltage PowerMOSFETs also in the thermally unstable portion of their transfer-characteristic. In such conditions, current crowding phenomena and hot-spots are formed, which can initiate degradation of the devices and eventually lead to their catastrophic failure. In this work, basing on the analysis of the cross-section of a failed chip, an interpretation of the evolution of the failure mechanism is presented. In particular, the conditions which characterise and define the failure itself are identified (C) 2004 Elsevier Ltd. All rights reserved.