Analog Devices is in advanced negotiations to acquire Silicon Valley-based Empower Semiconductor in a deal valued at around $1.5bn in cash, according to a Bloomberg News report citing unnamed sources familiar with the matter.
The transaction, which could reportedly be announced as soon as Tuesday, would give Analog Devices access to power management semiconductor technology used in AI processors and data centre infrastructure.
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Empower Semiconductor designs and manufactures voltage-regulating chips tailored for AI applications and data centres. The company’s product line includes three embedded silicon capacitors (ECAPs), that were launched in February 2026.
The ECAP capacitors have been developed to address power integrity requirements of next-generation AI and high-performance computing processors.
Empower Semiconductor’s ECAP portfolio consists of the EC2005P offering 9.34μF capacitance in a 2mm x 2mm package, the EC2025P with 18.68μF in a 4mm x 2mm package, and the EC2006P delivering 36.8μF in a 4mm x 4mm form factor. These devices are engineered with ultralow equivalent series inductance and resistance to optimise power delivery and integration in embedded systems.
The company also claims its FinFast technology aims to reduce energy use and operating costs in data centres by improving the efficiency and scalability of power delivery to AI processors.
Empower Semiconductor states its integrated voltage regulators enable on-demand, scalable power management with the precision and signal integrity necessary for demanding AI workloads.
In September 2025, Empower Semiconductor closed a Series D funding round in excess of $140m. The round included investment from Fidelity Management & Research Company, Maverick Silicon, Atreides Management, CapitalG, Socratic Partners, Knollwood, Walden Catalyst Ventures, and a fully owned subsidiary of Abu Dhabi Investment Authority (ADIA).
According to Empower Semiconductor, the proceeds from the financing are being used to accelerate growth in the AI sector and drive further research and development of power management technology.
The reported negotiations come as businesses increase investment in infrastructure optimised for generative AI workloads.
Analog Devices, headquartered in Wilmington, Massachusetts, supplies semiconductors to industries such as aerospace, automotive, communications, and energy. For its 2025 fiscal year, Analog Devices reported revenue exceeding $11bn.
The company forecast second-quarter fiscal 2026 revenue of $3.5bn, plus or minus $100m, and expects a reported operating margin near 36.4% and an adjusted operating margin of about 47.5%.
Projected reported earnings per share are $2.19, plus or minus $0.15, with adjusted earnings per share anticipated at $2.88, plus or minus $0.15.
In the first quarter, Analog Devices posted revenue of $3.16bn, with growth led by the industrial and communications segments. The company recorded $5.1bn in operating cash flow and $4.6bn in free cash flow over the trailing twelve-month period.
