I think you mean PWM, Pulse Width Modulation.
If you vary the duty cycle of a square wave (at constant frequency) and then low pass filter it with a break frequency significantly below the frequency of the square wave the effect is a DC voltage with an amplitude equal to the duty cycle of the square wave multiplied by the input voltage.
As FET's can be made with extremely low RDSon values and the switching regulator typically opperates at 200KHz+ small value (compact, high current) inductors can be used in the filter - the efficiency of the regulator is very high.
On a motherboard it will probably be refering to the temperature of the CPU VRM area as bitslice said...