July 10, 2026 /SemiMedia/ — Analog Devices said on July 7 that it has completed its acquisition of power management semiconductor company Empower Semiconductor.

ADI announced in May that it had entered into a definitive agreement to acquire Empower Semiconductor for $1.5 billion in cash.

Empower is based in Milpitas, California, and develops chips used in data centers and high-performance computing systems. The company has said its technology can reduce chip power consumption and help lower data center operating costs.

Before the acquisition, Empower announced that it had completed a Series D financing round led by Fidelity Management & Research, raising more than $140 million. The financing highlighted growing investor interest in technologies that improve power efficiency for AI infrastructure.

ADI designs, manufactures and sells chips used in industrial and communications equipment, consumer electronics and automotive applications. Through the acquisition of Empower, ADI is expanding its capabilities in high-performance power conversion and AI data center power architecture.

ADI Chief Executive Officer Vincent Roche said that as artificial intelligence infrastructure reshapes how power is delivered, energy has become a key constraint on system-level performance. He said Empower’s technology was built to remove that bottleneck and bring new levels of efficiency and performance to AI processors.

Industry analysts said rising AI server power consumption is making power management one of the most important issues in data center system design. GPUs, AI accelerators, high-speed networking chips and high-bandwidth memory all require more efficient, higher-density and lower-loss power solutions.

As AI computing capacity expands, system performance is no longer determined only by processors. Power conversion efficiency, power delivery stability, thermal management and board-level space utilization are also affecting total cost of ownership for servers.

For semiconductor suppliers, the ability to deliver higher-efficiency power management closer to the load is becoming a key area of differentiation.

The transaction shows that ADI is strengthening its position in AI infrastructure and data center markets. By adding Empower’s power management technology to its analog and power portfolio, ADI is expected to improve its competitiveness in high-performance computing, power density and system-level energy efficiency.