Onsemi Agrees to Buy Ferric for $600 Million to Expand AI Chip Power Business

onsemi on Monday announced it has entered into an agreement to acquire Ferric, Inc., an innovator in integrated voltage regulator (IVR) technology, for $600 million in cash, plus up to $175 million in contingent consideration upon achievement of certain revenue milestones.

The companies said the acquisition strengthens onsemi's power-delivery portfolio for next-generation AI processors. The transaction has not closed; it is expected to close by the end of 2026, subject to closing conditions.

Ferric's IVR technology integrates the power controller, transistors, inductors and capacitors into a single compact package, an architecture the companies say reduces board area by 50-70% compared with conventional voltage regulator solutions. Ferric holds a portfolio of more than 40 patents.

"The rapid growth of AI is reshaping the requirements for power delivery to increasingly capable and power-intensive processors," said Hassane El-Khoury, onsemi's president and CEO.

With the deal, onsemi said it is raising its 2030 AI data center revenue target by $500 million to greater than $3 billion, a company target rather than current sales.