byNordic Acquisition to merge with Sivers Semi’s photonics subsidiary

08 Aug 2024

SPAC-led deal expected to release “significant value” for NASDAQ-listed combined laser maker.

byNordic Acquisition Corp. a publicly-traded special purpose acquisition company, is to merge with Sivers Photonics, a Glasgow, UK-based subsidiary of Sivers Semiconductors, which is headquartered in Kista, Sweden. Financial details were not disclosed.

Sivers Photonics designs and manufactures semiconductor lasers for photonic devices, primarily for artificial intelligence (AI) applications in large data centers, optical communications and optical sensing applications.Its production facility in Glasgow, which has 80 employees, is said to be one of a few independent manufacturers of specially adapted lasers and semiconductor optical amplifiers in chip and wafer form.

These lasers are key components for several current and future technologies, such as generative AI, high performance computing connectivity, autonomous vehicles and smart factories.

The merger announcement stated, “according to industry research, the number of sold GPUs for generative AI will grow substantially to approximately 18 million units, which management estimates will result in a total addressable market for chip-to-chip connectivity of $5 billion and a served addressable market of up to $1 billion by 2027.”

Growing demand for AI applications

Demand for AI applications is projected to require significant increases in processing capability and energy consumption. According to the Electric Power Research Institute, data centers could use up to 9% of total electricity generated in the United States by the end of the decade - more than doubling the current consumption.

The application of silicon photonics (SiPh) for data centers is the leading solution with the capacity to deliver the chip-to-chip connectivity needed to remove the bottlenecks for generative AI, while significantly reducing energy consumption. In addition, says the merger announcement, “Sivers Photonics is also addressing other large billion-dollar market opportunities, including biometric sensors and autonomous automotive applications.”

Demonstrating its position as a key potential supplier in generative AI, in 2023 Sivers Photonics received a significant order from Ayar Labs for the qualification of volume production of its laser arrays.

“The global market for innovative technologies that can efficiently process and significantly reduce power consumption across AI infrastructure is massive and rapidly expanding,” said Michael Hermansson, byNordic’s Chief Executive Officer.

“We believe that Sivers Photonics is an ideal target for byNordic and that it is well positioned to capitalize on this significant market opportunity with exceptional growth potential. As a standalone publicly traded entity, Sivers Photonics will gain access to the U.S. capital markets and institutional investors while establishing a strong collaborative presence in the predominant geographical region of its current and targeted customers and partners,” said Hermansson.