Onsemi Eyes $1 Billion Ferric Acquisition to Expand AI Chip Power Technology

U.S. semiconductor maker Onsemi is in talks to acquire chip startup Ferric for approximately $1 billion, The Information reported on October 27, citing people familiar with the discussions. The potential transaction could be finalized within days, although negotiations remain ongoing. The deal structure remains uncertain and may include additional payments tied to Ferric’s performance. Neither company has publicly confirmed an agreement.

Founded in 2010, New York-based Ferric develops integrated voltage regulators that improve power delivery to advanced processors. Its technology reduces energy losses by delivering electricity closer to AI chips. The potential acquisition reflects growing demand for efficient power management as artificial intelligence infrastructure expands. Onsemi, headquartered in Arizona, supplies power semiconductors for automotive, industrial and data center applications.

The discussions follow Onsemi’s agreement to acquire Synaptics for approximately $5.7 billion, highlighting its broader expansion strategy. Meanwhile, rival Analog Devices agreed in May to acquire Empower Semiconductor for $1.5 billion. These transactions demonstrate increasing competition for advanced semiconductor power technologies. However, the Ferric acquisition remains uncertain, and its final valuation and payment terms could change.