US semiconductor company onsemi has agreed to acquire Ferric, Inc., a developer of integrated voltage regulator (IVR) technology. onsemi will pay $600 million in cash at closing, plus up to $175 million in additional cash tied to revenue milestones, funded from cash on hand.
What Ferric makes
Ferric's technology combines the power controller, transistors, inductors and capacitors into a single compact package. That lets power conversion move into the processor package or substrate, right next to the chip, and gives dynamic control over power at the level of individual processor cores. Ferric says its product cuts board area by 50 to 70% compared with conventional voltage regulators.
onsemi framed the deal around "tokens per watt": how much AI output a data centre gets for each unit of electricity. Power delivery has become a constraint as AI processors draw more power.
Deal details
- Price: $600 million in cash at closing, up to $175 million more on revenue milestones.
- People: about 50 Ferric employees, mainly in New York and Silicon Valley, are expected to join onsemi.
- Timing: expected to close by the end of 2026, subject to customary closing conditions.
- Advisers: Barclays and Morrison & Foerster for onsemi; UBS Investment Bank and Cooley for Ferric.
What it means for onsemi
onsemi raised its 2030 target for AI data centre revenue by $500 million, to more than $3 billion. It expects the deal to add to long-term revenue growth, gross margin and earnings per share at scale, with no meaningful financial impact in the near term.
"The rapid growth of AI is reshaping the requirements for power delivery."Hassane El-Khoury, President and CEO, onsemi
"We believe integrated power architectures will play an increasingly important role in the future of AI data centers."Noah Sturcken, founder and CEO, Ferric
Announced by onsemi in its filing with the US Securities and Exchange Commission: read the announcement
