onsemi to buy Ferric for $600 million, lifts AI data center target

onsemi's move to acquire Ferric builds on a shift in how power is delivered to AI processors. As processor power consumption continues to rise, the industry is moving voltage regulation progressively closer to the processor to reduce power losses, improve power density, and respond quickly to rapidly fluctuating power demands. Ferric's technology integrates power conversion functions directly into the processor package or substrate, a step the company says can cut board area by 50–70% compared with traditional discrete voltage regulator solutions while delivering more power near the processor.

Ferric brings more than a decade of expertise in integrated voltage regulation and advanced magnetic materials, backed by a portfolio of over 40 patents. onsemi expects to combine Ferric's technology with its own productization capability, scale, and broad customer base to establish leadership in power delivery for next-generation AI processors and drive large-scale commercialization. The acquisition is also expected to contribute to onsemi's long-term revenue growth and gross margin targets, with the company predicting minimal near-term financial impact.