Onsemi Agrees To Pay $600 Million Cash For Ferric, Raises 2030 AI Data Center Target
The chipmaker will also owe up to $175 million more if revenue milestones are met, and says its AI revenue goal rises $500 million.
Onsemi agreed Monday to buy Ferric, a developer of voltage regulators built into AI processor packages, for $600 million in cash plus up to $175 million more if revenue milestones are hit. The company said it is raising its 2030 AI data center revenue target by $500 million, to more than $3 billion.
Terms of the Ferric deal
Ferric's securityholders get the $600 million at closing, subject to customary adjustments for Ferric's cash, debt, transaction costs and working capital, according to the 8-K. The extra contingent payment of up to $175 million is tied to revenue milestones.
Onsemi will fund the purchase with cash on hand. About 50 Ferric employees, mostly in New York and Silicon Valley, are expected to join the company.
The company said it expects the deal to add to its long-term revenue growth and gross margin targets at scale, and to earnings per share, but sees no meaningful near-term financial impact.
Power moves inside the processor
Onsemi makes chips for power management and sensing, from electric vehicle drivetrains to image sensors for car safety systems and power products for AI data centers. Automotive made up about 51% of its 2025 revenue, while AI data centers fall in an "other" bucket that was 21% of the total, alongside other markets.
Ferric's integrated voltage regulators pack the power controller, transistors, inductors and capacitors into a single package, the company said. That design cuts board area by 50-70% versus conventional discrete regulators, and Ferric holds more than 40 patents.
Onsemi says the industry is moving voltage regulation closer to the processor to cut losses and respond faster to swings in power demand. CEO Hassane El-Khoury said the AI boom is "reshaping the requirements for power delivery to increasingly capable and power-intensive processors." Onsemi also expects multi-year accelerated growth in its integrated regulator business after 2030.
Antitrust clearance and timing
The deal needs the waiting period under the Hart-Scott-Rodino antitrust law to expire or end early. Onsemi expects it to close in the fourth quarter of 2026.
Ferric founder and CEO Noah Sturcken said joining onsemi gives the startup "the scale, manufacturing capabilities and customer reach needed to accelerate adoption."
Sources
- 8-K Filing — ON SEMICONDUCTOR CORP (ON) — SEC EDGAR
- Exhibit d185557dex991.htm — ON SEMICONDUCTOR CORP 8-K exhibit — SEC EDGAR
- ON Semiconductor sinks on Q3 results, guidance; announces $600M deal for Ferric (ON:NASDAQ) | Seeking Alpha — seekingalpha.com
- Onsemi to acquire Ferric for $600M in cash; raises 2030 AI data center revenue target (ON:NASDAQ) | Seeking Alpha — seekingalpha.com
- onsemi to Acquire Ferric, Establishing Leadership in Power — globenewswire.com
