Analog Devices in $1.5bn deal
Analog Devices said power density and energy efficiency are emerging as some of the biggest constraints facing AI system development
Analog Devices has announced plans to acquire AI power delivery specialist Empower Semiconductor in a $1.5 billion all-cash deal aimed at strengthening its position in next-generation AI infrastructure.
The acquisition is designed to expand Analog Devices’ capabilities in advanced power delivery architecture for artificial intelligence and other compute-intensive applications, where efficient energy management is becoming increasingly critical as processing demands continue to scale.
Analog Devices said power density and energy efficiency are emerging as some of the biggest constraints facing AI system development, particularly within hyperscale data centres and high-performance computing environments.
By integrating Empower Semiconductor’s technology portfolio, the company aims to enhance its offering for hyperscalers, cloud providers and AI developers while significantly expanding its addressable market in AI power systems.
The transaction is expected to close during the second half of 2026. Following completion, Empower CEO Tim Phillips will lead integrated voltage regulator initiatives within Analog Devices.
Phillips said Empower was founded to address the growing power bottleneck limiting AI system performance.
“Our technology delivers the power density, speed and efficiency needed for AI processors to achieve their full capability and unlock future generations of computing performance,” he said.
He added that combining Empower’s innovations with Analog Devices’ scale, manufacturing strength and power management expertise would accelerate adoption among global customers.
Headquartered in Silicon Valley, Empower Semiconductor develops advanced power management technologies designed to reduce both the energy consumption and operating costs of large-scale data centres.
Vincent Roche, CEO and Chair of Analog Devices, said AI infrastructure is fundamentally changing how power must be delivered across modern computing systems.
“With Empower, we are broadening our portfolio to help customers redesign power architectures capable of supporting the compute densities required by next-generation AI platforms,” Roche said.
Analog Devices reported quarterly revenue of $3.16 billion for the period ending 31 January, representing 30 per cent year-on-year growth. The company generated more than $11 billion in revenue during its last financial year.
The acquisition also builds on Analog Devices’ continued expansion strategy, including its previously announced €630 million manufacturing investment in Limerick, Ireland, which is expected to create 600 jobs.
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