The advantages of gallium nitride and silicon carbide transistors over silicon devices are highlighted. The design criteria for power modules in multi‐kilowatt applications to effectively leverage these advantages are described. Various concepts to overcome limitations associated with state‐of‐the‐art power module packaging presented in the literature are summarized and evaluated. A novel power module design comprising a 650 V, 300 A half‐bridge with integrated direct current–link and gate drivers is proposed. The results of a finite‐element analysis of its parasitic elements and subsequent double‐pulse test simulation are presented.