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Analog Devices $ADI -1.02% 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.
