In a bold move, Adisyn Ltd (ASX: AI1) has shifted its relationship with Israeli graphene innovator 2D Generation (2DG) into high gear, announcing its proposed acquisition of the semiconductor IP trailblazer. What started as a strategic collaboration in July 2024 has now evolved into formal negotiations for Adisyn to acquire 100% of 2DG, aiming to transform the AI, data centre, and cybersecurity landscapes. This acquisition has the potential to reshape industries grappling with the data-hungry demands of generative AI.
Breaking Through the Bottlenecks
2D Generation has been pioneering a breakthrough in semiconductor technology, specifically addressing the industry’s “Holy Grail” – the interconnect bottleneck. Traditional materials like copper and aluminium, which form the conductive pathways in chips, are hitting their physical and performance limits. As the global AI landscape continues its exponential growth, 2DG’s graphene technology provides a way to turbocharge chip performance while drastically reducing energy consumption and heat output.
Key to 2DG’s technological edge is its ability to coat interconnects with graphene at temperatures below 300 degrees Celsius. This is a significant achievement, given that no one in the industry has been able to achieve such deposition temperatures at scale. The promise of graphene-coated interconnects goes beyond just faster chips – it opens the door to a new era of miniaturisation and energy efficiency, making it crucial for sectors such as AI, telecommunications, and autonomous vehicles.
A Partnership Transformed into Ownership
Adisyn’s announcement of its proposed acquisition of 2D Generation comes as the semiconductor market booms, driven by the rising demands of generative AI, which requires more data processing power and faster, more efficient chips. Blake Burton, Adisyn’s Managing Director, highlighted the strategic significance: “This acquisition marks a pivotal step for Adisyn, positioning us at the forefront of AI and semiconductor innovation. We are now uniquely placed to leverage 2D Generation’s technology in our core markets, including defence, data centres, and cybersecurity.”
Under the deal’s indicative terms, Adisyn will issue 300 million shares, alongside performance rights tied to key technological milestones, including the successful deposition of graphene onto semiconductor materials. The two companies are working towards finalising a binding Share Purchase Agreement (SPA), expected within weeks.
Adisyn has also secured $3 million in firm commitments from new and existing investors, further demonstrating confidence in the strategic value of the acquisition. This capital raise, issued at a 9% discount to the company’s last closing price, will support the development of 2DG’s business and further strengthen Adisyn’s ability to capitalise on the growing demand for advanced AI-driven semiconductors.
The Graphene Edge
2D Generation’s patented graphene solution is a game-changer for the semiconductor industry, especially as the demands on data centres and AI technologies skyrocket. Global data creation is expected to grow from 120 zettabytes (ZB) in 2023 to over 2,100 ZB by 2035, while energy consumption by data centres is set to more than double in the coming years. The challenge is clear: industries need faster, more efficient chips that consume less power.
This is where 2DG’s innovations come into play. Their proprietary process of embedding graphene onto semiconductor materials offers a path forward, allowing chips to process more data at lower power consumption, improving both performance and sustainability. As Burton noted, “This isn’t just about incremental improvements; it’s about redefining the limits of what’s possible.”
Collaboration on the Global Stage
2D Generation’s integration into the European Union’s Connecting Chips Joint Undertaking, alongside heavyweights like NVIDIA, Valeo, and Applied Materials, underscores its standing in the global semiconductor ecosystem. The EU’s initiative aims to fast-track the next generation of AI-optimised chips, and 2DG’s participation highlights its technological relevance on the world stage.
Shane Wee, Adisyn’s Chairman, shared his excitement about the deal: “Our collaboration with 2D Generation and their access to cutting-edge semiconductor technology positions Adisyn at the forefront of AI and data centre advancements. This acquisition cements our role as a leader in delivering faster, more energy-efficient solutions.”
2D Generation’s CEO, Arye Kohavi, echoed the sentiment, emphasising the strategic alignment between the two companies. “Working with Adisyn on developing AI hardware and software has already shown the massive potential in the data centre and cybersecurity sectors. We look forward to finalising this acquisition and accelerating the pace of innovation.”
Looking Ahead
As the formalisation of the acquisition looms, Adisyn is poised to ride the wave of generative AI’s surging demand. The acquisition of 2D Generation places the company at the centre of a critical technological transition—one that could reshape the future of computing. For investors and industry players alike, Adisyn’s bet on graphene-coated semiconductors may well pay off in spades as the world grapples with the growing energy and data demands of the AI-driven future.
