The AI boom is driving a critical shift in power semiconductors, as Analog Devices (ADI) moves to acquire Empower Semiconductor in a $1.5 billion deal. The acquisition targets specialized integrated voltage regulators (IVRs) designed to be placed directly inside AI processor packages, rather than on the circuit board.

Empower’s IVR technology integrates voltage regulation directly into AI processor packages

While both companies initially declined to comment, Bloomberg reports ADI is in advanced talks to buy the privately held power management startup. Empower’s IVR technology delivers scalable, high-speed power with the precision and signal integrity needed for modern AI processors.

Unlike traditional PMIC solutions that rely on bulky discrete components, Empower’s IVRs eliminate external inductors and capacitors. This creates a tiny, configurable IC that can be placed on the underside of processor substrates or integrated into AI accelerator packages—reducing the power delivery footprint by 3–5 times.

Empower has collaborated closely with Marvell to embed IVRs directly beneath AI processors within their packages. This addresses a key industry bottleneck: data centers are hitting power consumption limits, and conventional power designs are too slow, expensive, and large for AI workloads.

For ADI, the acquisition fills a critical gap. While ADI has built strong power rail and module assets through past acquisitions of Linear Technology and Maxim Integrated, it lacks specialized power delivery solutions for AI accelerators. Buying Empower allows ADI to skip building this technology from scratch and gain a proven solution for reducing data center energy use and costs.