AI chips are only as useful as the power that reaches them — and onsemi just bought a specialist that shrinks that path.
On November 2, 2026, onsemi announced it will acquire Ferric, a startup focused on integrated voltage regulators, for $600 million in cash plus up to $175 million contingent on revenue milestones. The deal uses cash on hand and is expected to close by the end of 2026, subject to customary conditions.
What Ferric brings
Ferric’s IVR technology integrates the controller, FETs, inductors and capacitors in one package. That design uses 50% to 70% less board area than discrete voltage regulator modules and, with Ferric’s iron technology, brings power closer to the processor. About 50 Ferric employees in New York and Silicon Valley will join onsemi, along with more than 40 patents.
onsemi raised its 2030 AI data center revenue target by $500 million to more than $3 billion. CEO Hassane El-Khoury and Ferric founder and CEO Noah Sturcken highlighted the combination in the announcement. Barclays and Morrison Foerster advised onsemi; UBS and Cooley advised Ferric.
Financial picture
onsemi expects the acquisition to be accretive to long-term revenue growth, gross margin and earnings per share at scale, with no meaningful near-term financial impact.
Why it matters
AI hardware spend is shifting to power delivery at the package. Semiconductor and data-center supply vendors should update messaging around power density and tokens-per-watt.
For B2B sellers in the AI infrastructure chain, “how close is the power” is becoming as important as FLOPS in customer conversations.
Source: onsemi. Written by the xRapid Media LLP team.
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