Analog Devices to Purchase AI Chip Company Empower for $1.5 Billion

On Tuesday, May 19, 2026, U.S. chipmaker Analog Devices made a significant announcement. The company is set to acquire Empower Semiconductor, an AI-focused power management firm, for an estimated $1.5 billion in cash. This move marks a considerable expansion of its power management portfolio centered on AI.

Empower Semiconductor, a startup based in Silicon Valley, is renowned for its specialization in integrated voltage regulators and silicon capacitor technology. These are designed to address critical power delivery challenges that AI data centers face. The company’s proprietary FinFast technology facilitates high-density, high-efficiency power delivery directly to AI processors. This addresses a major bottleneck that has been limiting AI throughput.

“Empower was founded to solve the hardest problem in AI power delivery – the power bottleneck that is limiting AI throughput,” stated Tim Phillips, CEO of Empower Semiconductor.

The acquisition will merge Empower’s advanced power management technology with Analog Devices’ manufacturing scale and extensive customer reach.

This deal is a reflection of the escalating consolidation in the semiconductor industry. Established chipmakers are in a race to acquire capabilities related to AI compute and power efficiency. Empower’s silicon capacitors are already in production, and the company is progressing with programs involving leading hyperscalers and AI silicon providers. The transaction is projected to close in the second half of 2026, subject to regulatory approvals.

Source: Analog Devices Official Press Release