Analog Devices, the Wilmington, Massachusetts-based chipmaker, has agreed to acquire Empower Semiconductor for $1.5 billion in cash. The acquisition aims to expand Analog Devices' AI-focused power management portfolio as demand from AI developers for compute power delivery continues to climb.
Based in Milpitas, California, Empower Semiconductor specializes in vertical power delivery, providing integrated voltage regulators that place more than 3,000 amps of current directly under GPUs and AI accelerators. This technology is intended to help advance power delivery for AI and other compute-intensive applications where power bottlenecks can be limiting.
The deal reflects a major bet on the increasing energy demands of AI data centers, which have created a skyrocketing need for efficient chips. By acquiring the closely held firm, Analog Devices expects to expand its total addressable market in the artificial intelligence compute power delivery sector.