Analog Devices announced it has entered into a definitive agreement to acquire Empower Semiconductor in an all-cash transaction valued at $1.5 billion. The deal is designed to strengthen Analog Devices’ position in high-density, energy-efficient power delivery systems for AI infrastructure and other compute-intensive applications.
The acquisition comes as AI compute workloads continue to increase power density and thermal management demands across hyperscale data centers. Analog Devices said the combination will help customers improve power conversion efficiency closer to processors, reducing power delivery path lengths and enabling higher-performance AI systems.
Empower Semiconductor specializes in integrated voltage regulator (IVR) and silicon capacitor technologies intended to improve power density, efficiency, and response speed for AI processors. Analog Devices said the acquisition expands its total addressable market in AI compute power delivery and strengthens its “grid-to-core” power management strategy for hyperscalers and AI silicon developers.
Empower’s silicon capacitor products are already in production, while its IVR programs are being developed alongside major hyperscalers and AI chip providers. Analog Devices plans to accelerate adoption of those technologies through its manufacturing scale, operational capabilities, and customer relationships.
Under the terms of the agreement, Analog Devices will pay Empower shareholders $1.5 billion in cash. The boards of directors of both companies have approved the transaction. The acquisition is expected to close in the second half of 2026, subject to customary regulatory approvals and closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.
Following completion of the transaction, Empower CEO Tim Phillips is expected to continue leading IVR technology initiatives within Analog Devices.
PJT Partners is serving as financial advisor to Analog Devices, with Wachtell, Lipton, Rosen & Katz acting as legal counsel. Barclays is serving as financial advisor to Empower Semiconductor, while Goodwin Procter is acting as legal counsel.
KEY QUOTES:
“AI infrastructure is fundamentally reshaping how power must be delivered, with energy now the most persistent constraint to scaling next-generation systems. ADI already delivers some of the highest-performance power management solutions in the industry, and with Empower we are further expanding our portfolio to help customers rearchitect their power systems and achieve the compute densities next-generation AI demands. The impact of this technology extends well beyond AI data centers to any domain where energy constrains what is possible.”
Vincent Roche, CEO and Chair, Analog Devices
“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. The combination of ADI’s power management platform, scale and operational excellence, along with the system level benefits our merger enables, will accelerate our adoption with customers.”
Tim Phillips, CEO, Empower Semiconductor
