Analog Devices (ADI) is expanding its power semiconductor portfolio for AI data centers into the high-density power supply sector by acquiring Empower Semiconductor. This move aims to secure processor-adjacent power conversion technology as power density and thermal management become increasingly significant design constraints in AI accelerators and server systems.

ADI announced on the 21st that it has signed a definitive agreement to acquire Empower in a $1.5 billion cash transaction. The two companies plan to support the construction of power supply architectures for AI and computationally intensive applications.

Mpower is a company that has been developing power supply solutions for AI processors based on Integrated Voltage Regulator (IVR) and silicon capacitor technology. IVR is a technology that shortens the power supply path by placing voltage conversion functions closer to the processor, which is advantageous for reducing power loss and heat generation.

In AI data centers, the ability to supply power with high density and efficiency within a limited space is becoming more important than the simple total amount of power. This is because as the performance of GPUs and AI accelerators increases, power delivery structures become more complex, and the cooling burden grows accordingly.

ADI plans to strengthen its system-level power platform, extending from the power grid to the processor core, by combining its existing power management semiconductor capabilities with Empower's IVR and silicon capacitor technologies. This is interpreted as a strategy to address the high-density power supply issues required by hyperscalers and AI semiconductor developers.

Empower's silicon capacitors are already in mass production, and the IVR program is being developed in collaboration with major hyperscalers and AI semiconductor suppliers. ADI plans to expand market adoption of this technology by leveraging its manufacturing capabilities and customer network.

The transaction has been approved by the boards of directors of both companies and is scheduled to be completed in the second half of 2026, subject to HSR antitrust review and the fulfillment of general closing conditions. Even after the transaction closes, Tim Philips, CEO of Empower, will continue to lead IVR technology development as a member of ADI.