Onsemi in talks to buy chip startup Ferric for about $1B
What's the deal? Onsemi is discussing an acquisition of chip startup Ferric for close to $1 billion, according to people familiar with the matter. The structure is unclear but could include payments tied to Ferric's performance targets. A deal could come together in the coming days, though terms may change or talks could collapse.
What each side brings: Scottsdale-based Onsemi, with a market cap of about $30 billion, designs semiconductors that manage power for cars, factories, and increasingly AI data centers. New York-based Ferric, founded in 2010, makes integrated voltage regulators that funnel power directly to small chips underneath or inside AI processors.
Why now? As AI data centers draw ever more electricity, chipmakers are hunting for technologies that deliver power to a chip with less waste. Ferric's design cuts the distance electricity travels, reducing energy lost along the way.
What's the endgame? Onsemi, which generated $6 billion in revenue last year, has been expanding its business lines. This month it agreed to buy Synaptics for $5.7 billion in cash to grow sensor and processor sales in smart devices.
What could go wrong? A price near $1 billion would be steep for a startup generating little revenue. Ferric, which raised a $32.1 million Series C in December 2024, is backed by New Science VenturesDealroom has a profile for this one. Try Dealroom → and federal grants. Onsemi reports quarterly earnings on Monday, and discussions remain ongoing.
The signal: The talks fit an industry push to secure power-management technology for AI data centers, where delivering energy efficiently has become a constraint. Analog Devices agreed in May to buy Empower Semiconductor for $1.5 billion, and Infineon completed its purchase of C2i Semiconductors in October. A roughly $1 billion Ferric deal would mark a notable escalation in the race to build broader AI power-delivery portfolios.
Read more: The Information
Image credit: Idaho National Laboratory
