Analog Devices $ADI agreed to acquire Empower Semiconductor for $1.5 billion in cash, the companies said Tuesday, as power delivery becomes a central bottleneck in AI data center design.
The all-cash deal will expand Analog Devices' power delivery portfolio for AI data centers, where energy constraints are limiting system performance
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Analog Devices $ADI agreed to acquire Empower Semiconductor for $1.5 billion in cash, the companies said Tuesday, as power delivery becomes a central bottleneck in AI data center design.
Empower, based in Milpitas, California, makes integrated voltage regulator and silicon capacitor chips that deliver power closer to the processor, reducing energy loss and supporting higher-performance computing systems. The company said its silicon capacitors are already in production and that its integrated voltage regulator programs are advancing with hyperscalers and AI chip developers.
In a statement, Analog Devices CEO and Chair Vincent Roche described energy as "the most persistent constraint to scaling next-generation systems" and said the deal positions the combined company to address the compute density requirements of next-generation AI. Tim Phillips, Empower's CEO, described his company's founding mission as tackling what he called "the hardest problem in AI power delivery — the power bottleneck that is limiting AI throughput." Once the acquisition is complete, Phillips is expected to remain at the combined company, where he will head its integrated voltage regulator technology work, according to the two companies.
The transaction, which has been approved by both companies' boards, is expected to close in the second half of 2026, subject to regulatory approvals. PJT Partners is serving as financial advisor to Analog Devices, with Wachtell, Lipton, Rosen & Katz as legal counsel. Barclays is advising Empower, with Goodwin Procter as legal counsel.
A September fundraising round brought Empower more than $140 million, with Fidelity Management & Research Co. leading the Series D.
The acquisition comes as AI infrastructure buildout places mounting pressure on power delivery systems across data centers. As Quartz has reported on the scale of AI data center expansion, rack-level power density has grown sharply — a single rack of AI training chips now draws 120 to 140 kilowatts, with next-generation systems projected to exceed 200 kilowatts — creating demand for more efficient power management at every layer of the system. The four largest hyperscalers combined for $413 billion in capital expenditures in 2025 and are projected to spend $600 billion to $700 billion in 2026.
Analog Devices is a broad-based chipmaker whose products serve markets including industrial automation, communications, consumer electronics, and automotive applications, according to Bloomberg.
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