Onsemi has agreed to acquire Ferric, a company specializing in integrated voltage regulator (IVR) technology, in a deal valued at $600 million upfront, with an additional $175 million potentially payable based on revenue milestones. The acquisition is expected to strengthen onsemi’s power delivery solutions for next-generation AI processors by introducing advanced voltage regulation technology that improves power density, energy efficiency, and response to rapid changes in power demand.
As AI processors become increasingly powerful, managing electricity more efficiently has become a major challenge. One approach is to position voltage regulators closer to processors, reducing power losses and enabling faster responses to changing workloads. Integrated voltage regulators take this concept further by placing power conversion technology directly within the processor package or substrate.
Ferric’s IVR technology integrates key components, including power controllers, field-effect transistors (FETs), inductors, and capacitors, into a compact package. According to the companies, this design can reduce circuit board space requirements by 50% to 70% compared with traditional discrete voltage regulator solutions. It also allows power to be delivered closer to the processor, creating more room for other components and helping direct a larger portion of the available power toward AI computing.
More efficient power delivery could also improve tokens-per-watt performance, an increasingly important measure of energy efficiency in AI systems. As demand for AI computing continues to grow, these improvements could help data centers achieve greater processing performance without proportionally increasing energy consumption.
Ferric contributes more than 10 years of expertise in integrated voltage regulation and advanced magnetics, along with a portfolio of more than 40 patents. Onsemi plans to combine Ferric’s technology with its established product development capabilities, manufacturing infrastructure, and customer network to accelerate the development and commercialization of advanced power solutions for AI processors.
The deal also supports onsemi’s growing ambitions in the AI data center market. Following the announcement, the company increased its 2030 AI data center revenue target by $500 million, setting its new goal at more than $3 billion. Onsemi also expects IVR-related business growth to accelerate further beyond 2030.
Although the acquisition is expected to contribute to the company’s long-term revenue growth and gross-margin objectives, onsemi does not anticipate a significant financial impact in the near term.
Under the agreement, onsemi will pay $600 million in cash at closing, using available cash resources. An additional payment of up to $175 million will depend on Ferric achieving specified revenue milestones. Around 50 Ferric employees, mainly located in New York and Silicon Valley, are expected to join onsemi.
The transaction is expected to be completed by the end of 2026, subject to customary closing conditions.
