onsemi to Buy Ferric in $600 Million Cash Deal
The semiconductor maker is adding differentiated power-density, efficiency and transient-response technology to strengthen its grid-to-core portfolio for AI processors.
onsemi (ON) agreed to acquire Ferric, Inc. in an all-cash transaction valued at $600 million, plus up to $175 million in contingent consideration if certain revenue milestones are met.
The semiconductor maker said the deal is expected to close by the end of 2026, subject to customary closing conditions.
The company said the acquisition will strengthen its leadership in power delivery to AI processors by adding differentiated power density, efficiency and transient response capabilities, further enhancing its portfolio from grid to core.
President and CEO Hassane El-Khoury said, “Combined with onsemi’s broad power portfolio, this strategic acquisition will strengthen our leadership position while expanding our content opportunity and ability to support customers as AI processor architectures continue to evolve.”
The move follows onsemi’s Sept. 23, 2025 agreement with Aura Semiconductor to acquire rights to Vcore power technologies, including associated IP licenses, a deal the company said would enhance its power management portfolio and roadmap and accelerate its vision to address the complete power tree in AI data center applications, from grid to core. That Aura transaction was expected to close in the fourth quarter of 2025, subject to customary closing conditions, and onsemi said it expected minimal impact to GAAP and non-GAAP earnings per share in the first fiscal year following close and accretive thereafter.
Ferric’s contingent consideration of up to $175 million is tied to achievement of certain revenue milestones, a structure that layers performance-linked cash on top of the $600 million base purchase. The company did not disclose a premium or an exchange ratio for the Ferric deal.
El-Khoury’s comment framed the purchase as a content expansion rather than a one-off technology add: the company said it would expand onsemi’s ability to support customers as AI processor architectures continue to evolve, on top of the existing power portfolio.
The expected close by the end of 2026, subject to customary closing conditions, leaves the contingent-consideration milestones as the remaining variable on the $175 million upside.