onsemi to acquire Ferric for $600 million

onsemi has announced the acquisition of Ferric, a specialist in integrated voltage regulator (IVR) technology, for $600 million in cash. The deal includes the potential for an additional $175 million payment contingent upon meeting specific revenue targets.

The acquisition is intended to strengthen onsemi’s position in the power infrastructure market for AI processors. By integrating Ferric’s IVR technology and its portfolio of over 40 patents, onsemi aims to enhance its energy management solutions for data centers and AI-based computing systems.

As part of this strategic move, onsemi has increased its 2030 revenue target for AI data centers by $500 million, bringing the projected total to over $3 billion. The company expects accelerated growth in the IVR segment as the industry shifts toward moving voltage regulation closer to processors to reduce losses and increase power density.