onsemi Invests $600 Million to Acquire Ferric and Targets Over $3 Billion in AI Data Center Revenue by 2030 in the US

onsemi has signed a definitive agreement to acquire Ferric, Inc., a developer of integrated voltage regulator (IVR) technology, in a cash transaction valued at USD 600 million with up to USD 175 million in additional contingent consideration linked to specified revenue milestones.

onsemi Raises 2030 AI Data Center Revenue Target

The announcement, made on Nov. 2, 2026, also carries a raised financial ambition: onsemi is increasing its 2030 AI data center revenue target by USD 500 million to greater than USD 3 billion, with further acceleration expected beyond that horizon.

The transaction will be funded entirely from cash on hand and is expected to close by the end of 2026, subject to customary closing conditions. onsemi does not anticipate meaningful near-term financial impact from the acquisition but expects it to be accretive to long-term revenue growth, gross margin, and EPS targets at scale.

Why Voltage Regulation Is Moving Into the Processor Package

The strategic logic of the deal rests on a shift underway across the semiconductor industry.

As processor power demands continue to scale, voltage regulation is being moved progressively closer to the processor itself to cut losses, increase power density, and respond faster to rapidly changing power demands.

Integrated voltage regulators represent the next stage of that evolution, embedding power conversion directly into the processor package or substrate.

Ferric IVR Technology Targets More Efficient AI Power Delivery

Ferric's IVR technology integrates the power controller, FETs, inductors, and capacitors into a single compact package.

According to onsemi's announcement, this architecture reduces board area by 50-70% compared with conventional discrete voltage regulator solutions while delivering more power closer to the processor.

Customers can then dedicate a greater share of system power to AI compute, improving tokens per watt for increasingly power-intensive processors. "AI power demands are accelerating the transition to IVR," the company stated in its announcement.

Hassane El-Khoury, President and CEO of onsemi, said the rapid growth of AI is reshaping the requirements for power delivery to increasingly capable and power-intensive processors.

"Combined with onsemi's broad power portfolio, this strategic acquisition will strengthen our leadership position while expanding our content opportunity and ability to support customers as AI processor architectures continue to evolve," he said.

Ferric's Technology and Team Join onsemi's Scale

Ferric brings more than a decade of specialized engineering expertise in integrated voltage regulation and advanced magnetics, supported by a portfolio of more than 40 patents.

Approximately 50 Ferric employees, primarily based in New York and Silicon Valley, are expected to join onsemi as part of the acquisition. The combination pairs Ferric's engineering talent in magnetics and power conversion with onsemi's productization capabilities, operating scale, and customer relationships.

According to the company, the acquisition is expected to establish onsemi as a leader in power delivery to next-generation AI processors and advance the commercialization of these technologies at scale.

It also strengthens onsemi's leadership in AI processor power delivery by adding differentiated power density, efficiency, and transient response capabilities, further enhancing the company's portfolio from grid to core.

Noah Sturcken, Founder and CEO of Ferric, said the company was founded to rethink how power is delivered at the point of compute.

"We believe integrated power architectures will play an increasingly important role in the future of AI data centers," he said. "Joining onsemi gives us the scale, manufacturing capabilities, and customer reach needed to accelerate adoption and bring these technologies into the mainstream."

Growth Targets and What Comes After 2030

The raised 2030 target, now greater than USD 3 billion in AI data center revenue, up USD 500 million from the prior goal, is accompanied by an expectation of multi-year accelerated growth in onsemi's IVR business following the 2030 target horizon.

The company reiterated that the transaction is expected to be accretive to its long-term revenue growth and gross-margin targets at scale, in addition to its EPS targets.

With the deal set to close by year-end 2026, onsemi's stated aim is to combine Ferric's differentiated IVR technology with its existing power portfolio as AI processor architectures continue to evolve and power delivery requirements intensify.