Adisyn Ltd (ASX:AI1 ) has announced a binding agreement to acquire 100% of semiconductor IP company 2D Generation Ltd, a move set to enhance its offerings in AI-driven sectors such as data centres, defence, and cybersecurity. This acquisition positions Adisyn at the forefront of semiconductor innovation, enabling it to tap into high-growth markets and leverage a partnership in the European Union's Connecting Chips Joint Undertaking. The deal underscores Adisyn’s ambitions to lead in capital-light, cutting-edge semiconductor IP solutions that are essential for next-generation technologies like generative AI.
Acquisition Highlights and Strategic Vision
Adisyn’s acquisition of 2D Generation provides it with proprietary semiconductor technologies that address critical challenges in computing power, energy efficiency, and thermal management. These technologies are particularly valuable as the demand for AI applications continues to accelerate. Chairman Shane Wee highlighted the strategic nature of the acquisition: "This acquisition positions AI1 at the forefront of the industry, particularly in sectors such as defence, data centres, and all chip-driven applications." For Adisyn, the deal expands its reach across high-growth sectors without the need to invest heavily in physical manufacturing facilities, allowing the company to focus on commercialising 2D Generation’s IP for broad market applications.
Breakthrough Technology for AI and Beyond
2D Generation’s technology portfolio includes a groundbreaking approach to graphene coating for semiconductor interconnects, a feature that allows the company to produce advanced chips with better energy efficiency, reduced heat output, and smaller physical footprints. This graphene-coating technique, achieved at temperatures below 300 degrees Celsius, overcomes significant technical barriers that have hampered the semiconductor industry’s progress. Arye Kohavi, CEO of 2D Generation, noted the breakthrough’s importance, stating, “The ability to coat interconnects with graphene at temperatures below 300 degrees is a critical development, one that is indispensable for the future evolution of the industry.”
The unique coating process positions Adisyn and 2D Generation to tackle one of the semiconductor industry's major bottlenecks: the interconnect. As chips become denser and smaller, traditional materials like copper face limitations in speed, energy consumption, and durability. 2D Generation’s solution offers a competitive edge by minimising these issues, thereby enhancing performance and enabling further miniaturisation—a critical requirement for the next wave of AI-driven processing power and data management needs.
Partnership with EU’s Connecting Chips Consortium
In addition to its proprietary technology, 2D Generation brings an influential partnership to the table. It is part of the European Union’s Connecting Chips Joint Undertaking, an initiative focused on fast-tracking advanced semiconductor technologies to support AI, Internet of Things (IoT), and high-performance computing. The consortium includes major players like NVIDIA, Valeo, Applied Materials, and NXP, providing Adisyn with direct access to collaborative opportunities and technological insights from industry heavyweights.
Connecting Chips’ goal of reducing Europe’s dependency on foreign semiconductors aligns with Adisyn’s growth strategy, positioning it to benefit from joint R&D resources and accelerated technology deployment. The consortium also prioritises sustainable semiconductor solutions, a critical concern as data centres and AI applications scale up their energy requirements. Through this collaboration, Adisyn is set to contribute to and gain from innovations in energy-efficient chip manufacturing.
Financing and Performance Incentives
To support the acquisition and drive 2D Generation’s technology development, Adisyn has raised $3 million through an equity placement. The capital will help fund Adisyn’s plans, including a US$350,000 loan to 2D Generation for the acquisition of an Atomic Layer Deposition (ALD) machine critical to its graphene-coating process. The acquisition terms also include performance rights linked to specific milestones, such as demonstrating graphene deposition on specific substrates at sub-300°C and achieving revenue milestones.
As part of the acquisition agreement, 2D Generation will gain board representation at Adisyn, with Arye Kohavi expected to join as a non-executive director. Kohavi brings substantial expertise as an innovator and entrepreneur, most notably with his work at Water-Gen, a company renowned for its breakthroughs in air-to-water technology.
Arye Kohavi
Chairman, CEO, Co-Founder at 2D Generation
Looking Forward: Strategic Implications
Adisyn’s acquisition of 2D Generation marks a bold expansion into advanced semiconductor IP, giving it a technological edge that aligns with the growing demand for generative AI and high-performance computing. The capital-light nature of this deal allows Adisyn to concentrate on IP development rather than high-cost manufacturing, a significant advantage as semiconductor technology evolves toward miniaturisation and enhanced energy efficiency.
In addition to defence and data centre applications, 2D Generation’s graphene-based technology could support Adisyn’s ambitions in cybersecurity, AI chips, and environmental impact mitigation, further broadening its appeal to investors looking for exposure to cutting-edge, high-growth sectors.
