Onsemi Reportedly in Talks to Buy AI Chip Power Startup Ferric for $1B
Onsemi is reportedly negotiating to acquire Ferric, a startup working on power delivery for AI chips, for about $1 billion, The Information said on Oct. 27; onsemi has not confirmed it.
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Onsemi is reported to be in talks to buy Ferric for about $1 billion; neither company has confirmed.
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Onsemi is in talks to acquire the chip startup Ferric for about $1 billion, according to DigitalToday's account of a report first published by The Information on Oct. 27, citing sources. Onsemi has not confirmed the talks, and the report says terms could change or the talks could fall through.
The reported Ferric price of about $1 billion is the smallest of three recent power-chip deals; the Ferric talks are unconfirmed.
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The Information said the deal could be completed within days. It did not disclose the structure, but said it could include terms under which Ferric is paid based on meeting performance targets. DigitalToday describes Ferric as an AI chip power startup.
Why Power Delivery Is the Target
Onsemi supplies semiconductors that manage power for vehicles, factories and AI data centers, and posted revenue of $6 billion last year. As electricity consumption in data centers rises, The Information said, chip companies are looking for technologies that deliver power to chips without losing it on the way.
That is the same problem behind the move to higher-voltage racks. Voltgrid reported earlier that Infineon is putting gallium nitride into the intermediate bus converter for NVIDIA's 800 VDC AI racks.
A Second Deal in October
The talks would follow another large purchase. In October, onsemi agreed to buy the listed company Synaptics for $5.7 billion in cash, a deal The Information said could let onsemi expand sales of sensors and processors for smart devices. A Ferric purchase would point the other way, toward power for AI hardware.
The report also gives a rival comparison. Analog Devices agreed in May to buy Empower Semiconductor, a startup developing devices that improve power efficiency for AI chips, for $1.5 billion. Those are the two reference points the report gives for AI power-efficiency startups.
What Is Not Confirmed Yet
Neither company has commented publicly. The price is described as about $1 billion, the payment structure is unconfirmed, and the summaries do not say what Ferric's technology does or which customers use it. Until onsemi or Ferric confirms a signed agreement, this remains a report of talks.
