onsemi Q3 Data Center Revenue Up 175% YoY, Acquires Ferric for Up to $775 Million to Bolster AI Power Supply

Data center revenue up 175% year-over-year, onsemi spends big to acquire Ferric and double down on AI power supply Source: Semiconductor Horizons Published: 2026-11-04 10:56 onsemi data center generate poster onsemi Q3 results beat expectations, bets on IVR power management track.

Major U.S. power semiconductor company onsemi delivered quarterly results that beat market expectations, while simultaneously announcing an acquisition of integrated voltage regulator (IVR) leader Ferric for up to $775 million, advancing on both fronts to strengthen its AI chip power management footprint—seen by the market as a landmark move signaling the company's full pivot toward the AI data center power management track.

On the earnings front, onsemi's reported third-quarter results showed quarterly revenue of $1.722 billion, above the FactSet analyst estimate of $1.705 billion; adjusted earnings per share were $0.90, also beating the market expectation of $0.88. Both revenue and profit exceeded expectations, reflecting that while the company's base businesses such as automotive and industrial remain relatively solid, the incremental contribution from AI data center business is emerging.

By business segment, third-quarter data center revenue reached $180 million, up 39% quarter-over-quarter and up a whopping 175% year-over-year, accounting for about one-tenth of total revenue. Although the data center business is still relatively limited in scale and the automotive market remains the main revenue source, its steep growth trajectory clearly shows that power management demand driven by AI infrastructure is becoming the company's new growth engine. onsemi primarily makes power management chips and integrated circuits for automotive and industrial applications, and in recent years has actively expanded into the AI data center market, with related business having grown into an important incremental contributor to results.

For the fourth quarter, onsemi gave relatively optimistic guidance, forecasting revenue between $1.715 billion and $1.815 billion, and adjusted earnings per share between $0.95 and $1.07. Company management has clear expectations for the long-term growth of the data center business, expecting 2026 data center revenue to double from more than $250 million in 2025, and to double again to more than $1 billion in 2027, showing considerable optimism about the expansion of power management demand driven by AI infrastructure.

The capital market's immediate reaction to these results was at times conflicted. onsemi's stock fell 2.18% that day to close at $70.11; after the earnings release it initially dropped 5% in after-hours trading but then turned higher, showing investors digesting both the results and the acquisition move.

What drew more industry attention was the acquisition itself. onsemi announced the same day that it will acquire Ferric for $600 million in cash, and pay up to an additional $175 million based on the achievement of certain revenue milestones, for a total transaction value of up to $775 million. Ferric is a company focused on developing integrated voltage regulators for AI processors, with technology that can improve power supply efficiency and power density, directly meeting AI chips' urgent need for high-current, low-loss, compact power supply solutions.

Integrated voltage regulators (IVR) are a current technology hotspot in AI power management. As AI accelerators' power consumption and current demands continue to climb, traditional discrete power architectures are gradually approaching bottlenecks in power supply efficiency, board area and signal integrity, and IVR solutions that integrate the voltage regulator with the processor package or place it adjacent to the processor have become an important path to breaking through the power density ceiling. Ferric's accumulated expertise in this field precisely fills onsemi's key gap in high-end AI power supply.

onsemi noted that this acquisition will establish the company's leading position in IVR technology and enhance long-term revenue growth, gross margin and earnings per share targets. With the Ferric acquisition in place, onsemi will also raise its 2030 AI data center revenue target to more than $3 billion, a marked upward revision from previous plans, reflecting management's strategic bet on the AI power supply track.

From an industry landscape perspective, the computing power race in AI chips is gradually spreading to the power supply segment. The per-card power consumption of GPUs and AI accelerators continues to rise, and data center power architectures are evolving from traditional 12V to 48V bus, and even higher voltage platforms, with the value and technical threshold of power management chips rising in tandem. Whoever can establish an advantage in high-power-density, high-efficiency power supply solutions will be well positioned to capture a more favorable position in the long-term dividends of AI infrastructure. onsemi's choice to spend heavily to enter IVR at this time is precisely a bet on this structural opportunity.

For onsemi, the significance of this deal goes beyond filling out its product line. The company was previously known for automotive and industrial power management, with data center business accounting for less than one-tenth of revenue; by acquiring Ferric's core IVR technology, it is expected to help it open up the high-end market for AI server power management, upgrading from a single-component supplier to a system-level power supply solution provider. If Ferric's technology can create synergies with onsemi's power devices, packaging and customer channels, it will significantly strengthen its competitiveness across the entire AI power supply chain.

This article is reproduced from media reports or online platforms and represents the author's personal stance or views. Our republication is for sharing only and does not mean we endorse or agree with it. If the source attribution is incorrect or your lawful rights and interests are infringed, please contact customer service promptly, and we, as a neutral platform service provider, will promptly correct, delete or handle it in accordance with the law. Comments No user comments yet Latest News More Related Recommendations

In the next 10 years, AI infrastructure will cost $15 trillion 2026-11-04 10:54

India packaging boom, do small and medium-sized OSATs still have opportunities? 2026-11-04 10:37

Anthropic's computing capacity will exceed 3.5 gigawatts by the end of 2026, with next year's target doubling 2026-11-04 10:29