onsemi to Acquire Vcore Power Technology from Aura Semiconductor to Strengthen AI Data Center Leadership
Rhea-AI Summary
onsemi (Nasdaq: ON) has announced an agreement to acquire Vcore power technologies and associated IP licenses from Aura Semiconductor. The strategic acquisition aims to enhance onsemi's power management portfolio, particularly for AI data center applications, enabling comprehensive solutions from grid to core power delivery.
The deal strengthens onsemi's position in delivering intelligent power solutions with superior power density, efficiency, and thermals. By combining this technology with their existing silicon and silicon carbide (SiC) expertise, onsemi will become one of few companies capable of meeting modern AI infrastructure power requirements.
The transaction is expected to close in Q4 2025 with minimal impact on earnings in the first fiscal year and becoming accretive thereafter.
Positive
- Strategic expansion into high-growth AI data center power solutions market
- Enhancement of power management portfolio with Vcore technology integration
- Positions onsemi among select few companies capable of delivering complete AI infrastructure power solutions
- Expected earnings accretion after first fiscal year
- Leverages existing silicon and SiC technology expertise
Negative
- Minimal earnings impact in first fiscal year post-acquisition
- Subject to customary closing conditions which could delay completion
Insights
onsemi's acquisition of Aura's Vcore tech strengthens its AI data center power solutions portfolio, completing its offering from grid to processor.
onsemi's strategic acquisition of Vcore power technologies from Aura Semiconductor represents a calculated move to strengthen its position in the rapidly expanding AI data center market. This transaction fills a critical gap in onsemi's power management portfolio, allowing the company to offer end-to-end power solutions from grid connection to processor core – a capability few competitors can match.
The timing is particularly strategic as AI infrastructure buildout continues to accelerate globally. Power management for AI data centers presents unique challenges, with extreme power density requirements and the need for exceptional efficiency to manage thermal constraints. Modern AI accelerators can consume 600-800W per chip, creating significant design challenges that onsemi is now better positioned to address.
By integrating Aura's Vcore technology, onsemi leverages its existing strengths in silicon and silicon carbide (SiC) technologies to create a comprehensive solution set covering solid state transformers, power supply units, 800 VDC distribution, and now core power delivery. This vertical integration should yield superior systems-level solutions with optimized interfaces between power conversion stages.
The financial impact appears measured, with minimal effect on earnings in the first fiscal year but accretive thereafter, suggesting a disciplined acquisition approach. While specific financial terms weren't disclosed, the transaction structure indicates onsemi is acquiring technology rights and IP licenses rather than the entire business unit, potentially limiting integration complexity while capturing the essential technological capabilities.
Acquisition will expand onsemi’s capability in delivering differentiated solutions across the power tree
Scottsdale, Ariz, Sept. 23, 2025 (GLOBE NEWSWIRE) -- onsemi (Nasdaq: ON) today announced that it has entered into an agreement with Aura Semiconductor to acquire rights to its Vcore power technologies including associated intellectual property (IP) licenses. This strategic deal will enhance onsemi’s power management portfolio and roadmap, accelerating the company’s vision to address the complete power tree in AI data center applications, from grid to core.
"This acquisition underscores our commitment to solving the energy and efficiency demands of tomorrow’s AI data centers by offering a full range of differentiated intelligent power solutions,” said Sudhir Gopalswamy, group president of the Intelligent Sensing and Analog and Mixed-Signal Group, onsemi. “Integrating these technologies into our broader power management portfolio will enable us to deliver solutions with superior power density, efficiency and thermals and enable more compute capacity per rack."
With decades of innovation in silicon and silicon carbide (SiC) technologies, onsemi offers industry leading solutions for solid state transformers, power supply units, 800 VDC distribution, and core power delivery. With the integration of these technologies, onsemi will be one of the few companies capable of meeting the stringent power requirements of modern AI infrastructure with scalable, practical designs.
onsemi expects that this transaction will have minimal impact to its GAAP and non-GAAP earnings per share in the first fiscal year following close and accretive thereafter. The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions. The above descriptions of the agreement and acquisition are not exhaustive and are qualified by the related information disclosed in the Current Report on Form 8-K that onsemi files with the Securities and Exchange Commission (the “SEC”).
About onsemi
onsemi (Nasdaq: ON) is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. onsemi offers a highly differentiated and innovative product portfolio, delivering intelligent power and sensing technologies that solve the world’s most complex challenges and leads the way to creating a safer, cleaner and smarter world. onsemi is included in the Nasdaq-100 Index® and S&P 500® index. Learn more about onsemi at www.onsemi.com.
onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the Company references its website in this news release, information on the website is not to be incorporated herein.
Caution Regarding Forward-Looking Statements:
This press release includes “forward-looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this press release could be deemed forward-looking statements, particularly statements about the impact of the announced acquisition of Vcore power technologies and associated IP assets. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “anticipates,” “should” or similar expressions or by discussions of strategy, plans or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Certain factors that could affect our future results or events are described under Part I, Item 1A “Risk Factors” in the 2024 Annual Report on Form 10-K filed with the SEC on February 10, 2025 (the “2024 Form 10-K”) and from time to time in our other SEC reports. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information, which speaks only as of the date made, except as may be required by law. Investing in our securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks and uncertainties described in this document, our 2024 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Investor Relations:
Parag Agarwal
Vice President - Investor Relations & Corporate Development
onsemi
(602) 244-3437
investor@onsemi.com
Contact Info
Krystal Heaton
krystal.heaton@onsemi.com
+1 480-242-6943
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