onsemi has agreed to acquire Ferric, Inc. for $600 million in cash, adding integrated voltage regulator (IVR) technology for AI processor power delivery. The deal includes up to $175 million in additional cash consideration tied to revenue milestones.
As processor power scales, the industry is moving voltage regulation closer to the processor to reduce losses, increase power density and respond faster to changing power demands. IVRs integrate power conversion directly into the processor package or substrate.
Ferric's technology combines the power controller, FETs, inductors and capacitors in a single compact package. The company says this architecture reduces board area by 50-70% compared with conventional discrete voltage regulator solutions while delivering more power closer to the processor. onsemi is raising its 2030 AI data center revenue target by $500 million to greater than $3 billion, with multi-year accelerated growth in its IVR business expected thereafter.
Hassane El-Khoury, president and CEO of onsemi, said: “The rapid growth of AI is reshaping the requirements for power delivery to increasingly capable and power-intensive processors. 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.”
The transaction will be funded with cash on hand and is expected to close by the end of 2026, subject to customary closing conditions. Approximately 50 Ferric employees, primarily located in New York and Silicon Valley, are expected to join onsemi. The acquisition is expected to be accretive to onsemi’s long-term revenue growth, gross-margin and EPS targets at scale, with no meaningful near-term financial impact expected.
