Onsemi is discussing a deal to buy Ferric for close to $1 billion, The Information reports, in a potential move tied to the growing power demands of AI chips. The talks are ongoing, and the deal’s structure is not clear.
Watch Desk analysis
What happened
The report says Onsemi, a semiconductor component maker, has been discussing an acquisition of Ferric, a 16-year-old chip start-up. Its technology is described as helping manage the intense energy needs of AI chips.
The Information says the deal could include payments linked to performance targets. It also draws a comparison with rival Analog Devices’ agreement in May to buy Empower Semiconductor for $1.5 billion, whose devices help AI chips manage electricity more efficiently.
Why it matters
AI hardware is not only a race to build faster processors. Managing the electricity those chips consume is part of the infrastructure problem, and this proposed acquisition would put a substantial price tag on technology aimed at that challenge.
If talks result in a deal, Onsemi would be buying into a segment where established chipmakers are already making large bets. The reported comparison with Analog Devices suggests this is not an isolated interest, though it does not establish how Ferric’s technology performs or what Onsemi would ultimately pay.
Our read
The useful signal is the target, not just the nearly billion-dollar figure: power management is becoming a strategic part of the AI chip supply chain. But this is a reported discussion, not a completed acquisition, and the price and structure could still change. In deal news, the footnotes tend to do rather a lot of work.
What to watch
- Whether Onsemi and Ferric agree a transaction.
- Whether any deal includes performance-linked payments, and what conditions apply.
- How Onsemi describes Ferric’s technology and its intended role in its business.
- Whether other chipmakers pursue similar power-management acquisitions.
Discussion spark: Should chipmakers buy specialist power-management firms to secure AI supply chains, or is this better handled through partnerships?
Sources and evidence
- Chipmaker Onsemi in Talks to Buy Startup for About $1 Billion (28 October 2026, 00:51 UTC)
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