Adisyn completes due diligence of 2D Generation, set to tap into hot semiconductor market – Stockhead
- Adisyn completes due diligence for 2DG acquisition
- 2DG’s graphene breakthrough could transform semiconductors
- It could also potentially solve the “holy grail” problem in this space
Special Report: Adisyn’s acquisition of 2D Generation could help capture opportunities in the hot and emerging semiconductor market.
Adisyn ASX:AI1 announced that it has completed formal due diligence to acquire 100% of semiconductor IP business, 2D Generation.
The acquisition, which will be put forward for shareholder approval at Adisyn’s General Meeting on Thursday, 19 December, is expected to settle shortly thereafter, with finalisation of the transaction slated for the first week of January 2025.
2D Generation’s shareholders have already unanimously approved the acquisition, and the remaining conditions precedent are expected to be completed by the end of December.
Upon that completion, 2DG will have the right to appoint a non-executive director to the Adisyn board—2DG’s Founder and CEO, Arye Kohavi.
Kohavi has a successful track record as an entrepreneur and innovator; and holds an MBA (Finance) and a BA in Economics and Accounting, both from the Hebrew University in Jerusalem.
He was the founder, president & Co-CEO of Water-Gen, which developed water-from-air and air dehumidification technologies, and was acquired for a significant amount.
This company was recognised as one of the World’s 50 Most Innovative Companies by Fast Company, and was listed as one of Israel’s “Nine Greatest Inventions of All Time” by the Israeli Ministry of Economy and Ynet readers.
In 2019, Water-Gen’s Genny was included in TIME magazine’s list of the world’s 100 Best Inventions.
Kohavi has also received several prestigious awards, including being named one of the world’s 100 Leading Global Thinkers and top innovators by Foreign Policy magazine.
Advancing graphene in semiconductors
2D Generation’s semiconductor IP, meanwhile, is an important advancement in semiconductor technology, with the potential to support the next generation of generative AI and provide innovative solutions for large data centres.
The acquisition of 2DG is therefore a major step forward for Adisyn, not only because of 2DG’s advanced technology but also due to its strategic position within the growing semiconductor sector.
2DG has developed a patented solution that allows for the deposition of graphene at sub-300°C — a breakthrough that it believes could be a game changer for the industry.
Graphene, renowned for its exceptional conductivity and strength, has long been touted as the material of the future for semiconductors.
However, integrating it into semiconductor manufacturing has been a significant challenge because graphene typically needs to be produced at high temperatures around 1,000°C, which can damage the sensitive structures of semiconductor chips.
This is where 2DG’s innovative use of Atomic Layer Deposition (ALD) comes into play.
ALD is a highly precise technique used in semiconductor fabrication, allowing for the deposition of materials one atomic layer at a time.
This enables exceptional control over material thickness and uniformity, making it ideal for integrating materials like graphene into semiconductor chips.
2DG has mastered the process of growing graphene at temperatures below 300°C, using ALD to layer graphene in a way that maintains the integrity of the chip
As Kohavi explained to Stockhead previously, “This low temperature is what sets us apart from everyone else. And this makes it possible to incorporate graphene into the semiconductor manufacturing process in a way that was previously not possible.”.
The company is now awaiting delivery of the latest Beneq ALD machine, set to arrive in the coming months.
“The transaction is an exciting evolution for 2D Generation.
“We are looking forward to receiving the highly specialised Atomic Layer Deposition (ALD) machine from Beneq, a global leader in ALD equipment serving the semiconductor and electronics industries.”
2DG aims to solve world’s Interconnects challenge
2DG’s breakthrough addresses one of the most pressing challenges in the semiconductor industry—interconnects.
These tiny conductive pathways connect different components within a chip, and are crucial for its functionality.
As transistors become smaller and more densely packed, the interconnects need to be thinner, but this increases their tendency to generate heat, which can slow down performance or even cause failure.
Graphene’s exceptional conductivity and heat resistance make it an ideal candidate to solve this “holy grail” problem.
“If we want chips to keep getting faster, we need to solve the heat generation problem, and graphene can do that. Without a solution to this, the industry will stall,” Kohavi said previously.
The acquisition of 2DG provides Adisyn with access to important technology, potentially positioning the company to benefit from the increasing demand for advanced semiconductors.
The market for these semiconductors is already valued in the hundreds of billions of dollars, and research suggests it could see significant growth in the years ahead.
It’s also worth noting that one of 2DG’s early backers, Senvest Management, is also a significant shareholder in Tower Semiconductors (NASDAQ:TSEM), holding approximately 8.32 million shares (7.48% of the total) as of November 2024.
Tower Semiconductors is a well-known global name in the industry, and Adisyn believes Senvest’s involvement signals strong confidence in 2DG’s potential.
Blake Burton, CEO of Adisyn, believes 2DG’s entry into this sector is timely, and he was pleased to have completed a very thorough due diligence process.
“This provides us with confidence in 2DG’s technological, financial, and legal position.
“We have no doubt that working together on developing cutting-edge semiconductor IP will create a huge opportunity for us.”
This article was developed in collaboration with Adisyn, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
