# Onsemi Raises AI Revenue Target Above $3 Billion After Ferric Deal By John Kim Canonical URL: https://www.tokenpost.com/news/business/47112 Published: 2026-11-03T01:00:35.000Z Updated: 2026-11-03T01:00:35.000Z Section: Business > The $600 million cash acquisition agreement includes up to $175 million in revenue-based milestone payments and is expected to close in the fourth quarter of 2026. Onsemi raised its 2030 AI data center revenue target to more than $3 billion after agreeing to acquire Ferric for $600 million, adding integrated voltage regulator technology for AI processors. The agreement, signed Monday, Nov. 2, provides for $600 million in cash, subject to purchase-price adjustments. It also includes up to $175 million in additional payments tied to specified revenue targets through 2029. Onsemi expects a fourth-quarter 2026 close, pending customary conditions. The deal follows [earlier coverage of a potential Ferric transaction](). The signed agreement sets the purchase price and milestone terms. Onsemi’s new target is $500 million above its previous goal of more than $2.5 billion in AI data center revenue by 2030. At its Sept. 16 Investor Day, the company projected more than $500 million in revenue from the market in 2026. Ferric makes integrated voltage regulators, which move power conversion closer to processors. Its design brings a power controller, transistors, inductors and capacitors together in one package. Onsemi says Ferric’s design could use 50% to 70% less board area than conventional discrete regulators. “The rapid growth of AI is reshaping the requirements for power delivery to increasingly capable and power-intensive processors,” Onsemi President and CEO Hassane El-Khoury said. Ferric founder and CEO Noah Sturcken said, “We believe integrated power architectures will play an increasingly important role in the future of AI data centers.” Onsemi expects to fund the acquisition with cash on hand and anticipates no meaningful near-term financial impact. For the quarter ended Oct. 2, 2026, the company recorded $1,722.3 million in total revenue, up 11% from a year earlier. Quarterly AI data center revenue rose 39% sequentially and 175% from a year earlier. The acquisition is expected to close in the fourth quarter of 2026. ## Links in this article - [earlier coverage of a potential Ferric transaction](https://www.tokenpost.com/news/business/42393)