Analog Devices to Buy Empower Semiconductor for $1.5 Billion
The all-cash deal expands ADI’s AI power-delivery portfolio as data centers face growing pressure from power density and efficiency demands.
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[Image source: Anvita Gupta/MITSMR Middle East]
Analog Devices, a US power-management semiconductor firm, said it will acquire Empower Semiconductor, a Silicon Valley startup focused on power delivery for AI processors, in an all-cash transaction valued at $1.5 billion.
The deal will add Empower’s integrated voltage regulator and silicon capacitor technologies to ADI’s portfolio. The companies said the combination will help deliver power closer to processors, shorten the power-delivery path and improve efficiency in higher-density systems.
Power density has become a constraint as AI compute expands, with data centers requiring high-efficiency power delivery at the point of compute and faster response to changing processor demands, ADI said.
“AI infrastructure is fundamentally reshaping how power must be delivered,” Vincent Roche, ADI’s Chief Executive Officer and chair, said in the statement. He said energy has become “the most persistent constraint to scaling next-generation systems.”
The transaction has been approved by the boards of both companies and is expected to close in the second half of calendar 2026, subject to customary conditions and regulatory approvals.
Empower Chief Executive Officer Tim Phillips will continue to lead integrated voltage regulator technology efforts at ADI after the deal closes.
Phillips said Empower was founded to address the power bottleneck limiting AI throughput, adding that its technology provides the power density, speed and efficiency required by AI processors.
Empower’s silicon capacitor technology is already in production, while its integrated voltage regulator programs are being developed with leading hyperscalers and AI silicon providers, ADI said.
PJT Partners is advising ADI on the transaction, with Wachtell, Lipton, Rosen & Katz serving as legal counsel. Barclays is advising Empower, with Goodwin Procter serving as legal counsel.
ADI reported revenue of more than $11 billion in fiscal 2025. The company supplies analog, digital, AI and software technologies for markets including automation, robotics, mobility, healthcare, energy and data centers.
