SYDNEY: Adisyn Ltd (ASX: AI1) has reached indicative terms for AI1 to acquire 100% of the issued share capital of 2D Generation Ltd which they will now look to finalise into a legally binding agreement.

The proposed acquisition is a critical move forward for AI1’s ever-expanding services businesses for data centres, managed IT, cybersecurity, and generative AI.

The acquisition will allow AI1 and 2DG to focus on developing capital-light semiconductor IP solutions for the data centre, cybersecurity, and managed IT business segments rather than competing in the high-capital expenditure (capex) infrastructure space.

Adisyn will be able to control the process in the development of 2D Generation’s unique Intellectual Property (IP) and maintain full ownership of the developed IP.

2DG is a partner in the European Union’s Joint Undertaking, ConnectingChips, which has been specifically formed and funded to fast-track the next generation of semiconductor chips to cope with generative AI’s ever-expanding processing requirements, need for speed, and lower power consumption.

2D Generation’s solution has the potential to substantially improve the efficiency of data centres and generative AI solutions, as well a range of other real-world technological applications.

It is generally accepted that the current generation of AI chips will reach their useful limits by 2030 or sooner.

Shane Wee, Chairperson of AI1, said, “The collaboration with 2DG and Arye’s team is a truly transformative partnership. Their access to cutting-edge advancements in AI semiconductor technology positions AI1 at the forefront of the industry, particularly in sectors such as defense, data centers, and all chip-driven applications.

This enables us to lead in delivering solutions that are faster, more compact, and energy-efficient. Moreover, 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.”

Chairman and CEO of 2D Generation, Arye Kohavi, states “our interactions with the AI1 team to date have been productive and insightful, and we have no doubt that working together on developing cutting edge AI hardware and software will create a huge opportunity in the datacentre and cybersecurity defence industries. We are looking forward to finalising the Proposed Acquisition and strengthening the bond between the two companies.

As the Company moves forward with the formalisation of the Proposed Acquisition, AI1 will be uniquely positioned to capitalise on the increasing global demand for high-performance semiconductors, bolstered by the backing of major industry players like NVIDIA, Valeo, and Applied Materials through the Connecting Chips joint undertaking.”