onsemi Raises AI Data Center Revenue Target to More Than $3 Billion
Key Facts
onsemi raised its 2030 AI data center revenue target by $500 million to more than $3 billion, alongside announcing an agreement to acquire Ferric. In a statement issued on November 2, the company said growth would accelerate after 2030, while the deal’s cash consideration is $600 million, with up to an additional $175 million contingent on meeting revenue targets. The deal adds processor power delivery technology to onsemi’s efforts to expand its data center-related business. The statement summary did not give a date for completing the acquisition. It also did not specify the revenue Ferric could add to the company.
The new target is an increase from a forecast onsemi announced in September, when it said AI data center revenue would exceed $2.5 billion annually by 2030. The company then estimated that this revenue would grow by about 50% annually through that year, outpacing expected industry growth by about 10 percentage points. This estimate links the company’s business expansion to demand for the power needed to run AI infrastructure. Also in September, onsemi described power density as one of the prominent engineering challenges of the current decade as AI, electrification and automation expand. It estimated the addressable market across automotive, industrial, AI data centers and emerging applications at $213 billion by 2030.
Ferric relies on integrated voltage regulators that combine power system elements, magnetics, capacitors and digital control in compact multiphase converters for high-performance computing. The company says this architecture enables power conversion and control elements to be placed in a compact design serving computing requirements. Its Fe1766 product delivers 160 amps, according to Ferric’s published specifications. The company says the package measures 8×4.4 mm² and current density is 4.5 amps per mm². It also reports conversion efficiency of 93%. These are the product specifications Ferric cites in describing its ability to deliver high current in a compact design.
onsemi said the agreement combines Ferric’s engineering expertise in magnetics and power conversion with its own product development, operational scaling and customer relationship capabilities. It expects the deal to support its long-term revenue growth, gross margin and earnings per share targets once the business reaches meaningful scale. The company tied the financial impact to reaching that scale, without specifying when that would happen or giving a separate expected contribution from Ferric. In its third-quarter 2026 results, onsemi reported revenue of $1.722 billion, up 11% year over year. Its U.S. GAAP gross margin was 41.4%, and diluted earnings per share were $0.79.
onsemi’s chief executive said that “rising power requirements are driving accelerating demand in AI data center and industrial markets.” In the second quarter, the company reported revenue of $1.604 billion, up 9% year over year, and described its data center business as its fastest-growing. It then forecast that revenue from the business would more than double in 2026. onsemi says the increase in AI rack power toward the megawatt level makes efficiency, thermal management, reliability and power density important alongside computing performance. The company estimated semiconductor content from the grid to the processor at about $15,000 per rack currently, and more than $115,000 in future architectures.
onsemi expects future architectures to move toward high-voltage direct current distribution to reduce power conversion stages, with the potential to deliver 800 volts DC directly to the computing tray. The deal adds Ferric’s technology to this path, which the company describes as tied to rising power needs in data centers. The chief executive was scheduled to take part in a third-quarter results call on November 2, 2026, when the company presented its results and business developments to investors. The acquisition announcement coincided with the release of those results. The additional payment remains tied to revenue targets, while the announcement summary did not specify a timetable for completing the deal.