onsemi agrees to buy Ferric for $600 million plus up to $175 million to power next-generation AI processors
Ferric makes integrated voltage regulators that sit close to the processor; onsemi raised its 2030 AI data centre revenue target by $500 million to more than $3 billion. The deal is expected to close by the end of 2026.
Why it matters
As AI processors draw more power, the industry is moving voltage regulation closer to the chip, and integrated voltage regulators are one way to do that. Buying Ferric gives onsemi that technology and its engineering team, and the company tied a $500 million increase in its 2030 AI data centre target directly to the deal. It comes on the same day Marvell agreed to buy Lumentum, another sign that chip suppliers are buying the parts that move power and data to AI processors.
Key facts
- $600 million in cash plus up to $175 million in contingent consideration
- Ferric makes integrated voltage regulators (IVR)
- 2030 AI data centre revenue target raised by $500 million to more than $3 billion
- onsemi CEO: Hassane El-Khoury
- Ferric founder and CEO: Noah Sturcken