Analog Devices to Acquire Empower Semiconductor for $1.5B to Lead AI Power Delivery Revolution

Wilmington, Mass. & Milpitas, Calif. – May 19, 2026 – Analog Devices, Inc. (NASDAQ: ADI), a global leader in high-performance analog and mixed-signal semiconductors, today announced a definitive agreement to acquire Empower Semiconductor, a pioneering developer of ultra-high-density power management solutions, in an all-cash transaction valued at $1.5 billion. The deal, unanimously approved by the boards of directors of both companies, is poised to reshape the landscape of power delivery for AI infrastructure and beyond.

Strategic Rationale: Solving AI’s Most Critical Power Bottleneck

The explosive growth of artificial intelligence has created an unprecedented challenge: power density and thermal constraints are now the primary barriers to scaling next-generation AI systems. Traditional power delivery architectures, reliant on bulky discrete components and long power paths, struggle to meet the demands of modern AI processors, which require massive, efficient, and fast power supplies to operate at peak performance.

Empower Semiconductor has emerged as a game-changer in this space with its proprietary FinFast™ technology, which encompasses two core innovations:

• Integrated Voltage Regulators (IVRs): These compact, high-speed regulators place power conversion directly adjacent to AI processors, eliminating inefficient long power paths and reducing energy loss by up to 50%.
• Silicon Capacitors: Ultra-compact, high-density capacitors that replace large, space-consuming board-mounted capacitor banks, enabling significant footprint reduction in AI servers.

“AI infrastructure is fundamentally reshaping how power must be delivered, with energy now the most persistent constraint to scaling next-generation systems,” said Vincent Roche, CEO and Chair of ADI. “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—from automotive and industrial automation to aerospace and high-performance computing.”

Transaction Details and Closing Timeline

Under the terms of the agreement, ADI will pay $1.5 billion in cash to Empower’s stockholders. The transaction is expected to close in the second half of 2026, subject to customary closing conditions, including the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act) and other regulatory approvals.

Upon closing, Tim Phillips, CEO of Empower Semiconductor, will join ADI and continue to lead the development and commercialization of Empower’s IVR and silicon capacitor technologies, ensuring continuity of innovation and customer support.

“Empower was founded to solve the hardest problem in AI power delivery—the power bottleneck that limits AI throughput,” said Tim Phillips, CEO of Empower Semiconductor. “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, operational excellence, and global customer reach, along with the system-level benefits our merger enables, will accelerate our adoption with customers worldwide.”

Financial and Operational Synergies

The acquisition builds on ADI’s strong financial position, with the company reporting fiscal second-quarter 2026 revenue of $3.62 billion, up 37% year-over-year, driven by robust demand across industrial, automotive, communications, and consumer markets. ADI’s 2025 fiscal year revenue reached $11 billion, with free cash flow of $4.3 billion, providing ample resources to fund the acquisition and integrate Empower’s operations.

For ADI, the deal accelerates its strategic shift from discrete power management ICs to system-level “grid-to-core” power solutions. By integrating Empower’s IVR and silicon capacitor technologies, ADI will be able to offer end-to-end power delivery systems that span from high-voltage data center infrastructure down to the core of AI processors—a capability unmatched by competitors.

Empower’s silicon capacitors are already in mass production, and its IVR programs are in advanced development with leading hyperscalers and AI silicon providers. ADI plans to leverage its manufacturing scale, global supply chain, and customer relationships to rapidly commercialize these technologies, accelerating time-to-market for key AI customers.

Beyond AI: Expanding into High-Growth Markets

While the primary focus of the acquisition is AI data centers, the combined technology portfolio has broad applications across multiple high-growth sectors:

• High-Performance Computing (HPC): Supercomputers and research clusters requiring extreme power density and efficiency.
• Automotive: Electric vehicles (EVs) and advanced driver-assistance systems (ADAS) with stringent power and thermal requirements.
• Industrial Automation: Smart factories and robotics operating in energy-constrained environments.
• Aerospace and Defense: Avionics, satellite systems, and military electronics demanding compact, reliable power solutions.

Conclusion: A Defining Moment for AI Power Delivery

The acquisition of Empower Semiconductor by Analog Devices marks a defining moment in the evolution of power management for the AI era. By combining ADI’s industry-leading analog expertise, global scale, and system-level vision with Empower’s breakthrough IVR and silicon capacitor technologies, the combined company is poised to become the undisputed leader in AI power delivery solutions.

As AI continues to drive digital transformation across industries, the ability to deliver efficient, compact, and high-density power will be a critical competitive advantage. With this acquisition, ADI is not only solving today’s most pressing power challenges but also laying the foundation for the next generation of AI innovation—unlocking the full potential of artificial intelligence for decades to come.