American chipmaker Analog Devices announced Tuesday its plans to purchase Empower Semiconductor in a $1.5 billion cash transaction, strengthening its artificial intelligence power management capabilities.
Both companies stated the acquisition will help improve power delivery systems for artificial intelligence and other demanding computing applications, where power limitations often create bottlenecks.
Key transaction details include:
• Empower CEO Tim Phillips explained his company was established to address “the hardest problem in AI power delivery,” referring to power bottlenecks that limit AI performance. “Our technology enables the power density, speed and efficiency required by AI processors to reach their full potential,” Phillips stated.
• The acquisition is anticipated to finalize during the latter half of 2026, pending regulatory approval.
• After completion, Phillips will remain at Analog Devices to oversee integrated voltage regulator technology initiatives.
• PJT Partners serves as financial advisor to Analog Devices, while Barclays advises Empower Semiconductor on the transaction.
• Analog Devices stock prices rose 1.2% in after-hours trading following the announcement.
