onsemi has agreed to acquire Ferric, a developer of integrated voltage regulators for AI processors, for US$600m in cash plus up to US$175m in contingent payments, the US chipmaker said on 2 November 2026 alongside its third-quarter results.
Why onsemi (ON Semiconductor Corporation) is buying Ferric, Inc.
onsemi said Ferric's technology improves power density, efficiency and transient response for next-generation AI processors and cuts board area by 50-70% compared with discrete regulators. The company raised its 2030 AI data centre revenue target by US$500m to more than US$3bn.
“Combined with onsemi's broad power portfolio, this strategic acquisition will strengthen our leadership position”
Deal terms and financing
The US$600m base price is subject to adjustments for cash, debt, transaction costs and working capital, and up to US$175m more is payable if revenue milestones through 2029 are met. The deal will be funded with cash on hand, and onsemi expects no meaningful near-term financial impact. About 50 Ferric employees, mainly in New York and Silicon Valley, are expected to join onsemi.
Regulatory approvals and timing
Completion is subject to customary closing conditions and is expected in the fourth quarter of 2026.
Market context
The Information reported on 27 October that onsemi was in talks to buy Ferric for close to US$1bn, including possible performance payments. onsemi's shares fell after its third-quarter results and guidance, Seeking Alpha reported.
