With the acquisition, Analog Devices wants to advance its position in power delivery architecture for AI.
Analog Devices is acquiring AI power delivery provider Empower Semiconductor for $1.5bn.
With the acquisition, Analog Devices wants to advance its position in power delivery architecture for AI and other compute-intensive applications.
The company says that power density could be limiting as AI compute scales, calling it “one of the most critical challenges in system design”.
The deal is expected to further the semiconductor company’s position as a power partner for hyperscalers and AI developers, as well as expand its total addressable market in the space.
Analog is purchasing Empower in an all cash deal, with the transaction expected to close in the second half of 2026. Empower CEO Tim Phillips will lead Integrated Voltage Regulator efforts as part of Analog.
“Empower was founded to solve the hardest problem in AI power delivery – the power bottleneck that is limiting AI throughput. Our technology enables the power density, speed and efficiency required by AI processors to reach their full potential, unleashing generations of performance improvements,” said Phillips.
“The combination of ADI’s (Analog Devices) power management platform, scale and operational excellence, along with the system level benefits our merger enables, will accelerate our adoption with customers.”
Based in Silicon Valley, Empower’s technology reduces the energy footprint and total cost of ownership of data centres.
Vincent Roche, the CEO and chairperson of Analog Devices added: “AI infrastructure is fundamentally reshaping how power must be delivered, with energy now the most persistent constraint to scaling next-generation systems.
“…with Empower we are further expanding our portfolio to help customers rearchitect their power systems and achieve the compute densities next-generation AI demands.”
Analog Devices made $3.1bn in revenue for the quarter ending 31 January, up 30pc from the same time last year. It made more than $11bn in revenue last year.
In 2023, the company announced 600 jobs in a new €630m Limerick manufacturing facility.
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