Scottsdale-Based onsemi Bets Up to $775 Million on Ferric to Power the Next Generation of AI Chips

By Kyle Macdonald, COO of Silicon Oasis

One of Arizona's largest homegrown technology companies is buying its way deeper into the AI data center. onsemi, the Scottsdale-headquartered semiconductor company, announced Nov. 2 that it has agreed to acquire Ferric, a maker of integrated voltage regulators for high-performance processors.

onsemi will pay $600 million in cash at closing, plus up to $175 million more if Ferric hits revenue milestones. The company expects to close the deal by the end of 2026, using cash on hand.

Ferric, led by founder and CEO Noah Sturcken, builds voltage regulators that combine the controller, transistors, inductors and capacitors in a single compact package. The company says the design cuts board area by 50 to 70 percent and delivers power closer to the processor, which matters more as AI chips draw more power. Ferric holds more than 40 patents, and its roughly 50 employees, mainly in New York and Silicon Valley, are expected to join onsemi.

"The rapid growth of AI is reshaping the requirements for power delivery to increasingly capable and power-intensive processors," said Hassane El-Khoury, onsemi's president and CEO.

The deal came alongside onsemi's third-quarter results, which showed AI data-center revenue up 175 percent year over year. The company also raised its 2030 target for that business by $500 million, to more than $3 billion.

That matters because power delivery is becoming one of the defining constraints of AI computing. As processors grow more powerful, getting clean, efficient power to them is as important as the chips themselves, and an Arizona-headquartered company is now positioning itself as a supplier of that capability.

It also shows the kind of strategic acquirer behavior a maturing ecosystem needs. When public technology companies headquartered in Arizona buy venture-backed startups to stay competitive, they create the exit paths that make founders and investors take a market seriously. The announcement does not say whether any of Ferric's work will move to Arizona, and that is the question worth asking next.

For Arizona founders working in power electronics, the signal is clear: one of the state's own chip companies is an active buyer. That is the larger Silicon Oasis story.

Articles of Reference:
https://www.sec.gov/Archives/edgar/data/0001097864/000119312526443681/d185557dex991.htm
https://www.sec.gov/Archives/edgar/data/0001097864/000114036126041580/ef20084671_ex99-1.htm