Insulated Gate Bipolar Transistors (IGBTs) are one of the key components in the power electronics industry and are found mainly in power-conversion applications like hybrid vehicles, renewable energy based power systems (photovoltaics, fuel cells, and wind turbines), robotic controllers and others. With increasing chip heat flux levels and packing density poses a critical thermal management problem. A two-phase loop thermosyphon is offered as a solution to the above problem in this paper looking at its self-sustaining capabilities and phase change heat transfer mechanism. Water based two-phase thermosyphon is initially analysed. The flow instabilities of the loop and impact of different parameters such as heat flux, valve control near inlet, and flow bypass over microchannels are looked upon. Heat transfer coefficients are deduced and the best operable conditions of the loop are determined.