Power and sensing technology company onsemi has agreed to acquire Ferric for $600m in cash, plus up to $175m linked to revenue milestones, to expand AI processor power delivery.
The $600m is payable at closing, while the additional cash consideration depends on Ferric meeting revenue milestones. Onsemi plans to fund the purchase with cash on hand. The transaction is expected to close by the end of 2026, subject to customary closing conditions.
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Onsemi has raised its 2030 AI data centre revenue target by $500m to more than $3bn following the agreement. It also expects multi-year accelerated growth in its integrated voltage regulator (IVR) business thereafter.
Ferric develops IVR technology that moves power conversion into the processor package or substrate, closer to the processor. Its design combines a power controller, FETs, inductors and capacitors in one compact package. Onsemi says it uses 50–70% less board area than conventional discrete voltage regulator solutions.
Moving voltage regulation closer to a processor can reduce power losses and improve the response to changing power demands. Onsemi says Ferric’s design can direct more system power towards AI computation, improving the number of tokens generated per watt.
Onsemi plans to add Ferric’s technology to its wider power portfolio as AI processors become more power-intensive. It expects the acquisition to expand its opportunities to supply components as AI processor designs evolve.
Ferric has worked on IVRs and advanced magnetics for more than a decade and holds a portfolio of more than 40 patents. Onsemi expects its manufacturing capabilities and customer reach to support wider adoption of Ferric’s technology.
Ferric founder and chief executive Noah Sturcken said: “Joining onsemi gives us the scale, manufacturing capabilities and customer reach needed to accelerate adoption and bring these technologies into the mainstream.”
Approximately 50 Ferric employees, primarily based in New York and Silicon Valley, are expected to join onsemi.
Onsemi expects no meaningful near-term financial impact from the acquisition. At scale, it expects the transaction to benefit its long-term revenue growth, gross-margin and earnings-per-share targets.
Barclays advised onsemi on the transaction, while UBS Investment Bank advised Ferric.
