With the acquisition, Onsemi will add differentiated power density, efficiency and transient response capabilities to its portfolio, according to the company.
In a further boost to its leadership in Power delivery solutions to artificial intelligence (AI) processors, Onsemi will acquire the Integrated Voltage Regulator (IVR) developer, Ferric. The deal will close at $600 million in cash and an additional $175 million in contingent consideration, tied to revenue milestones.
With the acquisition, Onsemi will add differentiated power density, efficiency and transient response capabilities to its portfolio, according to the company. Onsemi is expecting multi-year accelerated growth in its IVR business and has raised its 2030 data centre revenue target by $500 million to $3 billion.
The rapid growth of AI is reshaping power delivery requirements of increasingly capable processors, stated Hassane El-Khoury, president and CEO of Onsemi. Ferric’s IVR technology shifts power conversion directly into the processor package or substrate. The architecture reduces board area by 50 to 70 per cent of what is required in discrete voltage regulator solutions.
Noah Sturcken, founder and CEO of Ferric, said that joining Onsemi will provide scale, manufacturing capabilities, and customer reach needed for higher adoption of the technologies. With more than 40 patents, Ferric comes with a decade of experience in IVR solutions and advanced magnetics.
The transaction is expected to be closed by the end of 2026, subject to conditions with over 50 Ferric employees in New York and Silicon Valley to join Onsemi. The deal is expected to expand Onsemi’s gross-margin targets without near-term financial impact.
