Onsemi in talks to buy Ferric for about $1 billion to expand AI chip power capacity
Key Facts
Onsemi is in talks to acquire chip startup Ferric for nearly $1 billion, according to a report published by The Information on October 28, 2026. Ferric’s appeal centers on integrated voltage regulators that deliver power to AI chips, as demand grows for technology to manage those chips’ electricity needs. But negotiations have not reached a final agreement: the newspaper said talks are ongoing and the terms could change or the deal could fall apart. The newspaper reported that an agreement could be reached in the coming days, though that does not mean its completion is certain. The report puts the potential deal’s value at about $1 billion, while its structure and terms remain unclear.
Ferric makes integrated voltage regulators capable of directing power straight to small chips located beneath or inside AI processors, according to The Information’s description. This arrangement shortens the distance electricity travels, reducing the power lost as it reaches the processor. The technology matters because operating AI chips requires precise power delivery, making power components an area of growing interest for semiconductor companies. The newspaper noted that startups such as Ferric are working on this type of device. The talks therefore center on a specific technology for supplying chips with electricity, rather than a broad expansion of a chip portfolio.
Ferric was founded in 2010 and is based in New York, according to The Information, which cited PitchBook for information about the company. The company has raised funding from New Science Ventures and received grants from the federal government, the report said. On October 12, 2026, Ferric announced the launch of its Fe1767 Newport voltage regulator for AI processors and high-performance computing. The company said the device delivers 145 amps within an area of 49.8 mm², with efficiency of up to 90.5%. Ferric is thus presenting a recent product focused on power density and efficiency in a limited area.
Ferric says its Fe1766 product achieves conversion efficiency of 93%, and up to 64 devices can be combined to scale capacity to more than 10 kilowatts. Integrated voltage regulators aim to bring the power source closer to the processor, supporting direct electricity delivery to chips. These specifications provide technical context for Onsemi’s potential interest in the company, but do not determine whether it will buy Ferric or how it would integrate its products. The deal’s value and the form of consideration also remain unclear. The Information said the deal could include payments tied to Ferric meeting performance targets.
The talks come amid growing competition over power technology for AI chips. Analog Devices agreed in May 2026 to pay $1.5 billion to acquire Empower Semiconductor, a 12-year-old startup, according to The Information. Empower’s devices help AI chips manage electricity more efficiently, the report said. The announced value of that deal exceeds the value the newspaper reported for the Onsemi-Ferric talks, but the comparison is between a deal announced by Analog Devices and negotiations at Onsemi that have not yet been resolved. The race reflects semiconductor companies’ interest in power delivery technology as the use of AI processors expands.
Ferric talks coincide with Onsemi’s separate agreement to acquire Synaptics, which was amended on October 1, 2026, to $123 in cash per share, valuing the deal at about $5.7 billion, compared with about $7 billion under the previous agreement. Onsemi said the amendment followed an unsolicited competing offer from a third party, and that the deal is expected to close by mid-2027, subject to approvals. The company said the amended agreement is expected to be immediately accretive to earnings per share on a non-GAAP basis. A potential Ferric deal, if completed, would add to Onsemi’s acquisition agenda, while financing details and the contractual structure have not been disclosed. A near-term date for investors is the company’s third-quarter results call on November 2, 2026, at 5:00 p.m. U.S. Eastern time.