Analog Devices (ADI) and Empower Semiconductor have entered into a definitive agreement under which ADI will acquire Empower in an all-cash transaction for US$1.5 billion.
As AI compute scales, power density – not just total watts – has become the limiting factor. Delivering high-density, high-efficiency power at the point of compute, while responding to fast-changing demands, is now one of the most critical challenges in system design.
Together, ADI and Empower intend to help shape the power delivery architecture for AI and other compute-intensive applications. By enabling power conversion closer to the processor, the combined solution shortens the power delivery path and improves efficiency to support higher-performance, higher-density systems.
Building on its leadership in high-performance power management, ADI is investing in its system-level platform to deliver a step-change in performance, density, and efficiency from grid to core.
Vincent Roche, CEO and chair at ADI, said that 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,” said Roche. “The impact of this technology extends well beyond AI data centers to any domain where energy constrains what is possible.”
Tim Phillips, CEO of Empower Semiconductor, said the company 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 power management platform, scale and operational excellence, along with the system level benefits our merger enables, will accelerate our adoption with customers.”
Empower’s silicon capacitors are already in production, and IVR programs are advancing in close collaboration with leading hyperscalers and AI silicon providers – capabilities ADI will accelerate through its scale, manufacturing, and customer reach.
Under the terms of the agreement, which has been approved by the boards of directors of both companies, ADI will pay Empower’s stockholders US$1.5 billion in an all-cash purchase price.
The transaction is expected to close in the second half of calendar year 2026, subject to customary closing conditions and the expiration of the applicable waiting period.
When the transaction has closed, Phillips will continue leading IVR technology efforts as part of ADI.
