SCOTTSDALE — Scottsdale-based chipmaker onsemi has agreed to buy New York startup Ferric Inc. for $600 million in cash, plus up to $175 million more if revenue targets are met, according to a news release from the company.
Ferric makes integrated voltage regulators, which deliver power directly to processors used for artificial intelligence. Onsemi said the deal strengthens its lineup “from grid to core.”
Because of the acquisition, onsemi raised its 2030 AI data center revenue target by $500 million, to more than $3 billion, the company said.
According to the release, Ferric’s technology combines a power controller, transistors, inductors and capacitors in one compact package. Onsemi said that cuts circuit board space by 50% to 70% compared with conventional voltage regulators and lets customers devote more power to AI computing.
Ferric has more than a decade of engineering experience and more than 40 patents, the company said. About 50 Ferric employees, mostly in New York and Silicon Valley, are expected to join onsemi.
Onsemi said it will pay for the deal with cash on hand and expects it to close by the end of 2026, subject to customary conditions. The company said it expects no meaningful near-term financial impact.
ABC15 reported that onsemi, formally ON Semiconductor Corp., projects it will more than double its AI data center revenue this year.
Sources: onsemi news release via GlobeNewswire, ABC15. Thee Arizona Times uses AI-assisted reporting reviewed against the sources listed.
Photo: U.S. Department of Energy / Public domain via Wikimedia Commons.
