Onsemi in Talks to Acquire Chip Startup Ferric for $1 Billion

Onsemi, the Arizona-based semiconductor manufacturer, is in active negotiations to acquire chip startup Ferric in a transaction valued at approximately $1 billion, according to a report from The Information. The potential deal would mark a significant move by Onsemi to expand its technology portfolio in the competitive semiconductor market.

Ferric, a startup specializing in integrated voltage regulator and power management chip technology, has attracted attention for its innovations in delivering efficient power solutions for high-performance computing and data center applications. An acquisition at the reported valuation would represent a substantial premium for a chip startup operating in a sector that has drawn intense industry consolidation interest in recent years.

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Onsemi has been strategically repositioning itself in recent years, focusing on power semiconductors and intelligent sensing solutions particularly for the automotive and industrial markets. Adding Ferric's capabilities could strengthen its competitive standing in power management, a critical and fast-growing segment as demand for energy-efficient chips accelerates across data centers and electric vehicles.

The broader semiconductor industry has seen a wave of mergers and acquisitions as major players seek to secure differentiated intellectual property and reduce dependence on commoditized chip designs. A deal of this scale, if completed, would underscore the rising valuation of specialized power management startups amid surging global demand for advanced semiconductor solutions.

Neither Onsemi nor Ferric has issued a public statement confirming or denying the reported negotiations, and talks could still fall through without a final agreement being reached. Continue reading at All News.