Onsemi agrees to acquire Ferric for $600M, raises AI revenue target
Onsemi is in advanced discussions to acquire Ferric, a New York-based power-delivery startup, for approximately $1 billion, which may include earnouts.
The Scottsdale chipmaker is in advanced discussions to acquire Ferric, a New York-based power-delivery startup, for approximately $1 billion, a deal that may include earnouts linked to Ferric's performance targets.
What Onsemi is buying
Ferric was founded in 2010 and focuses on integrated voltage regulators, or IVRs. These components sit close to a processor and convert power into the precise voltage the chip needs.
Ferric's specific edge is thin-film magnetic inductor technology. That approach is designed to deliver efficient, high-density power directly to high-performance processors, including AI accelerators.
The company says its IVR technology can reduce voltage droop by up to 57% compared with traditional solutions. Voltage droop is the dip in supply that happens when a chip suddenly demands more power.
Ferric has raised approximately $41.8 million in total funding. Its most recent round was a $32.1 million Series C completed in December 2024.
The AI revenue outlook
At its Investor Day on September 16, 2026, Onsemi projected AI data center revenue would exceed $2.5 billion annually by 2030. The starting point is an expected baseline of around $500 million in AI data center revenue in 2026.
The September Investor Day also included a broader company outlook. Onsemi raised its overall revenue growth target to a compound annual growth rate of 12-14%, aiming for roughly $11 billion in total revenue by 2030.
Why power is the new bottleneck
Onsemi is a power and analog semiconductor company headquartered in Scottsdale. Modern data centers are hungry for electricity, and the demand keeps climbing as AI workloads scale. That positions power management as a critical piece of scaling AI infrastructure.
Onsemi already has a portfolio built around silicon carbide and gallium nitride. Both are materials used in high-efficiency power electronics, and both have been central to the company's push into automotive electrification.
The industry is also expected to shift toward higher-voltage architectures in data centers. Onsemi's existing technologies fit that direction at the system level. Ferric's IVRs address the final step: getting power into the processor itself.
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