📅 November 2, 2026 • onsemi
onsemi (Nasdaq: ON) announced on November 2 that it will acquire Ferric, a developer of integrated voltage regulators (IVR) for next-generation AI processors, for $600 million in cash at closing plus up to $175 million contingent on revenue targets. The deal is expected to close by the end of 2026, and about 50 Ferric employees are set to join onsemi.
Why power delivery matters for AI
Ferric builds integrated voltage regulators that sit close to the compute die and manage power at fine granularity. As AI accelerators pack more compute into denser packages and rack densities climb, delivering power efficiently next to the silicon becomes a bottleneck for performance, thermals and energy cost. Owning IVR technology lets onsemi sell deeper into the AI data center stack instead of competing only on discrete power components — a direct response to how next-generation AI processors are being designed.
Alongside the acquisition, onsemi raised its AI data center revenue target for 2030 by $500 million, to more than $3 billion. The company reported third-quarter results the same day: revenue of $1.722 billion, up 11 percent year over year, with the AI data center segment growing 39 percent quarter over quarter and 175 percent year over year. Non-GAAP EPS came in at $0.90.
Accretive by design
The all-cash deal, per the company statement, is accretive to long-term revenue, gross margin and EPS goals. The primary sources are the onsemi IR press release and an SEC Form 8-K filing, so the figures above come directly from the company rather than from secondary reporting.
Power delivery is turning into a competitive front of its own inside the AI buildout. Leading accelerators now rely on advanced power delivery architectures, and component suppliers that own the regulator IP can capture more value per socket. Ferric gives onsemi a position in that layer before the next generation of AI processors reaches volume production.
IMPACT: AI infrastructure demand is pulling semiconductor firms up the stack from chips into power subsystems, and 2030 revenue targets are being revised upward in real time. Expect other analog and power players to answer with their own IVR or power-delivery acquisitions.
Sources: investor.onsemi.com
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