onsemi to Acquire Ferric for $775M, Expanding AI Power Management Layout
2026-11-04
onsemi officially signed an agreement on November 2, 2026, to acquire integrated voltage regulator (IVR) company Ferric. The consideration structure consists of $600 million in cash at closing plus contingent consideration of up to $175 million, with total transaction value capped at $775 million, fully paid in cash from own funds. Ferric was spun out of Columbia University, holds more than 40 patents, and the transaction is expected to close by the end of 2026.
IVR Technology Advantages
Traditional AI processor power supply relies on board-level discrete solutions, with controllers, MOSFETs, inductors, and capacitors dispersed, occupying large area and creating long power paths, while transient response is limited by parasitic parameters. Ferric's IVR architecture integrates these components into a single compact package, directly embedded in the processor package or near the substrate, reducing board area by 50% to 70% versus discrete solutions while improving power density and transient response. onsemi CEO Hassane El-Khoury considers this a key extension: as AI processor power consumption continues to climb, voltage regulation must move closer to the compute core to reduce losses and accelerate response to load changes.Revenue Target Increase and Competitive Signal
The direct financial mapping of the acquisition is reflected in onsemi's revised expectations for its AI data center business. onsemi raised its 2030 AI data center revenue target by $500 million from the original level to more than $3 billion, and expects the IVR business to enter a multi-year accelerated growth trajectory thereafter. Ferric's IVR technology fills onsemi's gap in package-level power conversion, extending its position in the AI power management chain from a discrete power device supplier to a system-level power delivery solution provider.
Chip Supply Demand
Strategic M&A by chip original manufacturers changes mid- and long-term technology roadmaps and capacity layout, while downstream manufacturing and R&D continuity depends on stable response from the component spot supply chain. From EEPROM memory and smart power switches to 8-bit/32-bit microcontrollers and high-speed ADCs, the supply of different components directly affects the pace of project production.
SEMICONE, as an electronic component spot distributor, provides stable large-volume procurement and rapid sample service response, adheres to original genuine devices, and keeps core models in stock, shortening the supply chain cycle from design verification to volume delivery. SEMICONE spot original ICs are as follows:
● CAT24C16WI-GT3 (onsemi) — 16Kbit I²C serial EEPROM, SOIC-8
● BTS4175SGA (Infineon) — single-channel intelligent high-side power switch, integrated protection, DSO-8
● ATTINY44A-SSU (Microchip) — 8-bit AVR microcontroller, 20MHz, 4KB Flash, SOIC-14
● LPC1778FBD144 (NXP) — ARM Cortex-M3 microcontroller, 120MHz, 512KB Flash, LQFP-144
● AD9257BCPZ (ADI) — 14-bit, 65MSPS dual-channel analog-to-digital converter, LFCSP-48
Email: info@semicone.com
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