As artificial intelligence chips guzzle unprecedented amounts of electricity, onsemi buys Ferric – making a major move to own the power architecture inside the world’s most advanced data centers.
The semiconductor giant announced it is acquiring Ferric, Inc., a pioneer in integrated voltage regulator (IVR) technology, in a transaction valued at $600 million in cash upfront, with an additional $175 million on the table if specific revenue milestones are hit.
The acquisition directly addresses one of the biggest bottlenecks in modern AI computing – power efficiency. As AI processor demands skyrocket, traditional power delivery systems struggle with energy loss and space constraints.
The industry’s solution has been to move voltage regulation progressively closer to the silicon. IVRs take that concept to its logical endpoint by embedding power conversion directly onto the processor substrate or package.
Ferric’s technology combines power controllers, FETs, inductors, and capacitors into a single micro-package. That integration slashes required board space by 50% to 70% compared to traditional discrete solutions, while boosting power density and transient response times.
For data center operators, that space and efficiency win means more power redirected toward raw AI compute, ultimately delivering higher tokens per watt.
Behind the deal is Ferric’s decade-plus of specialized engineering in advanced magnetics and integrated voltage regulation, backed by a portfolio of more than 40 patents. By pairing Ferric’s tech stack with onsemi‘s massive manufacturing scale and global customer reach, onsemi aims to fast-track commercial deployment of IVRs across next-gen AI architectures.
The market outlook for the combined technology is ambitious. Confident in the acquisition, onsemi has bumped its 2030 AI data center revenue target by $500 million, bringing its total projection to over $3 billion, with accelerated multi-year growth expected for its IVR segment thereafter.
Financially, onsemi plans to fund the deal entirely with cash on hand. Roughly 50 Ferric employees, chiefly based out of Silicon Valley and New York, will join the onsemi team.
The transaction is slated to close by the end of 2026, pending standard regulatory approvals. While onsemi doesn’t expect a material impact on near-term financials, it anticipates the deal will be accretive to both long-term revenue growth and gross margins as production scales.
Leadership Comments
“The rapid growth of AI is reshaping the requirements for power delivery to increasingly capable and power-intensive processors,” said Hassane El-Khoury, President and CEO of onsemi. “Combined with onsemi’s broad power portfolio, this strategic acquisition will strengthen our leadership position while expanding our content opportunity and ability to support customers as AI processor architectures continue to evolve.”
“Ferric was founded to rethink how power is delivered at the point of compute,” said Noah Sturcken, Founder and Chief Executive Officer of Ferric. “We believe integrated power architectures will play an increasingly important role in the future of AI data centers. Joining onsemi gives us the scale, manufacturing capabilities and customer reach needed to accelerate adoption and bring these technologies into the mainstream.”
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