onsemi to Buy Ferric for $600 Million, Lifts 2030 AI Data Center Revenue Target Above $3 Billion

onsemi (Nasdaq: ON) said on November 2 it has agreed to acquire Ferric, Inc., an innovator in integrated voltage regulator (IVR) technology, for $600 million in cash at closing, plus up to $175 million in contingent consideration tied to revenue milestones. The deal will be funded with cash on hand and is expected to close by the end of 2026, subject to customary closing conditions. (Photo: file image of a semiconductor cleanroom, not an onsemi or Ferric facility.)

Power conversion moves next to the processor, saving 50-70% of board area

Ferric's technology integrates the power controller, field-effect transistors, inductors and capacitors into one compact package, so voltage conversion happens as close as possible to the processor. onsemi says the architecture uses 50% to 70% less board area than conventional designs built from discrete voltage-regulation components, while improving power density, efficiency and transient response. As AI processors consume more power, the industry is moving regulation ever closer to the chip itself. Ferric brings more than a decade of engineering work in integrated voltage regulation and magnetics, backed by more than 40 patents; approximately 50 employees, primarily in New York and Silicon Valley, are expected to join onsemi.

AI data center target raised; Q3 AI revenue up 175% year over year

onsemi also raised its 2030 AI data center revenue target by $500 million to more than $3 billion, and expects multi-year accelerated growth in its IVR business thereafter. The company disclosed AI data center revenue rose 175% year over year in fiscal Q3 2026, with total quarterly revenue of $1.722 billion, up 11% from a year earlier. onsemi expects no meaningful near-term financial impact from the acquisition, but says it should support long-term revenue growth and gross-margin targets at scale. Earlier reports had described discussions at close to $1 billion; the agreed price came in below that reported figure.

Sources: onsemi official press release (2026-11-02), Seeking Alpha, Middle News.