onsemi Discusses Buying Ferric for About $1 Billion Amid AI Power Race
Key Facts
onsemi has discussed acquiring chip startup Ferric for about $1 billion, according to a report published by The Information on October 28, citing people familiar with the matter. The potential deal remains uncertain, with the report saying talks are ongoing and terms could change or collapse. A deal could be completed in the days after the report was published, but that remains a possibility dependent on the course of negotiations. The report did not describe the talks as advanced, and neither company has announced a definitive agreement. The Information said an onsemi spokesperson did not respond to a request for comment, while a Ferric spokesperson declined to comment.
Ferric develops integrated voltage regulators, a technology the company says is designed for next-generation computing. Ferric says the regulators combine controllers, inductors, transistors and capacitors in a single component, targeting high-performance computing and power delivery close to the processor. According to The Information, the technology can route power directly to small chips beneath or inside AI chips. This design reduces the distance electricity travels, cutting the power wasted in transmission. That capability is gaining importance as power requirements rise in AI systems.
The Fe1766 product specifications illustrate the capabilities Ferric offers in this field: a 16-phase regulator, continuous operating current of 160 amps and an area of 35.5 square millimeters. The company describes the technology as a solution for increasing power-delivery density in computing systems. This is part of a broader challenge: increasing the electrical power that can be delivered to processors while limiting losses. In its announcement of the Empower Semiconductor deal, Analog Devices said, "Power density, not just total watts, has become the limiting factor." The statement puts power-delivery efficiency at the center of the competition to meet high-performance computing demands.
Talk of Ferric comes as chip companies expand through deals targeting power technologies linked to AI. onsemi rival Analog Devices agreed on May 19, 2026, to buy Empower Semiconductor for $1.5 billion in cash. The company said the deal expands its portfolio of high-density power solutions designed for AI. In its long-term strategy announced in September, onsemi said it was targeting a $213 billion market opportunity through power and sensing solutions. The company tied its focus to the power constraints facing AI, electrification and automation, while its chief executive described power density as "one of the defining engineering challenges of this decade."
onsemi's reported second-quarter results show the expansion of data-center activity within the company's business. Revenue reached $1.604 billion in the second quarter of 2026, up 9% year over year. The company said its AI data-center business is its fastest-growing activity and that it expects revenue from the business to more than double during 2026. These figures provide context for the company's expansion in a market where computing power needs are rising, but they do not represent an announcement of the specific rationale for the Ferric talks. onsemi has not attributed a stated objective to the potential acquisition in the available information.
onsemi also has a separate agreement to acquire Synaptics, which the company said is still expected to close by mid-2027, subject to Synaptics shareholder approval, customary regulatory approvals and other closing conditions. The company said the amended agreement followed Synaptics receiving an unsolicited competing acquisition offer from a third party. That agreement remains on a separate track from the Ferric talks reported by The Information. The next official date for investors to follow onsemi developments is the announcement of its third-quarter results, for the quarter that ended on October 2, 2026. The company plans to report results after the market closes on Monday, November 2, 2026.