On November 2, 2026, onsemi announced it entered into an agreement to acquire Ferric, Inc. for $600 million in cash, plus up to $175 million in contingent consideration. The deal aims to expand onsemi's integrated voltage regulator technology for next-generation AI processors.
Acquisition Terms and Financial Impact
According to onsemi, the acquisition includes $600 million in cash at closing, alongside up to $175 million in additional cash consideration tied to the achievement of revenue milestones. The transaction will be funded with cash on hand and is expected to close by the end of 2026, subject to customary closing conditions.
Approximately 50 Ferric employees, primarily located in New York and Silicon Valley, are expected to join onsemi. Following the announcement, onsemi raised its 2030 AI data center revenue target by $500 million to greater than $3 billion.
Technology and Market Integration
Ferric specializes in integrated voltage regulator technology that integrates the power controller, FETs, inductors, and capacitors into a single compact package. According to onsemi, this architecture reduces board area by 50-70% compared with conventional discrete voltage regulator solutions.
Hassane El-Khoury, President and CEO of onsemi, stated that the acquisition will strengthen the company's leadership position and expand its content opportunity as AI processor architectures evolve. Noah Sturcken, Founder and CEO of Ferric, noted that joining onsemi provides the scale and manufacturing capabilities needed to accelerate mainstream adoption.
Key facts and where they come from
- onsemi agreed to acquire Ferric, Inc. for $600 million in cash plus up to $175 million in contingent consideration.
onsemi (Nasdaq: ON) today announced that it has entered into an agreement to acquire Ferric, Inc., an innovator in integrated voltage regulator (IVR) technology, for $600 million in cash, plus up to $175 million in contingent consideration
- onsemi raised its 2030 AI data center revenue target by $500 million to greater than $3 billion.
Raises onsemi’s 2030 AI data center revenue target by $500 million to greater than $3 billion
- The transaction is expected to close by the end of 2026.
The transaction is expected to close by the end of 2026, subject to customary closing conditions
