onsemi Confirms Acquisition of Ferric for at Least $600 Million
onsemi has confirmed its plan to acquire integrated voltage regulator company Ferric for $600 million in cash plus up to $175 million in contingent consideration. Around 50 Ferric employees will join onsemi, and the transaction is expected to close by the end of 2026. This strategic acquisition boosts onsemi's 2030 AI data center revenue target by $500 million to over $3 billion. It strengthens the company's hardware capabilities in high-density power delivery required by modern artificial intelligence workloads. Ferric's integrated voltage regulator (IVR) technology packs power control, FETs, inductors, and capacitors into a single compact package. This integration saves 50% to 70% of circuit board space while enabling higher-density power delivery compared to traditional standalone regulators.
## BACKGROUND
As semiconductor technologies scale and AI processors demand enormous power, traditional power distribution networks face significant energy losses and parasitic limitations. Integrated voltage regulators (IVRs) place the final stage of power conversion very close to the processor load, drastically reducing distance, impedance, and resistive losses to improve efficiency.