The goal of the Direct-Cooled Power Electronics Substrate project is to reduce the size and weight of the heat sink for power electronics used in hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs). The concept proposed in this project was to develop an innovative power electronics mounting structure, model it, and perform both thermal and mechanical finite-element analysis (FEA). This concept involved integrating cooling channels within the direct-bonded copper (DBC) substrate and strategically locating these channels underneath the power electronic devices. This arrangement would then be directly cooled by water-ethylene glycol (WEG), essentially eliminating the conventional heat sink and associated heat flow path. The concept was evaluated to determine its manufacturability, its compatibility with WEG, and the potential to reduce size and weight while directly cooling the DBC and associated electronics with a coolant temperature of 105 C. This concept does not provide direct cooling to the electronics, only direct cooling inside the DBC substrate itself. These designs will take into account issues such as containment of the fluid (separation from the electronics) and synergy with the whole power inverter design architecture. In FY 2008, mechanical modeling of substrate and inverter core designs as well as thermal and mechanical stress FEA modeling of the substrate designs was performed, along with research into manufacturing capabilities and methods that will support the substrate designs. In FY 2009, a preferred design(s) will be fabricated and laboratory validation testing will be completed. In FY 2010, based on the previous years laboratory testing, the mechanical design will be modified and the next generation will be built and tested in an operating inverter prototype.