AI chipmaker Forge Nano to list via $1.6 billion SPAC deal

April 21 (Reuters) – Forge Nano, a U.S.-based semiconductor equipment and advanced materials company, plans to go public through a $1.6 billion blank-check deal with Archimedes Tech SPAC Partners II <ATII.O>, the companies announced on Tuesday.

The deal comes amid booming demand for AI chips in recent years as companies ramp up spending on data centers and high-performance computing to support generative AI applications, benefiting chip firms and equipment makers across the supply chain.

Robust demand has boosted orders for advanced chips and the tools used to manufacture them, despite lingering worries over supply constraints and the industry’s cyclical nature.

The deal is expected to generate gross proceeds of up to $342 million, including $242 million held in the special purpose acquisition company’s (SPAC) trust account.

A SPAC is a shell firm that raises capital through an IPO to merge with a private business, offering a quicker alternative than a traditional IPO.

SPAC mergers hit record levels in 2020 and 2021, with several Wall Street heavyweights – including billionaire investors Bill Ackman and Michael Klein – betting on them as the next big trend in listings.

However, activity slowed sharply in subsequent years as regulatory scrutiny increased and investors soured on the once-popular vehicle.

Forge Nano is backed by several marquee investors, including Volkswagen, GM Ventures and LG Technology Ventures. It has also received a $100 million grant from the U.S. Department of Energy.

Forge Nano said it will use the proceeds to scale U.S. manufacturing of semiconductor tools and lithium-ion batteries and support expansion into high-growth markets such as pharmaceuticals, data centers and quantum computing.

The companies expect the SPAC deal to close in the second-half of 2026. The combined entity will trade on the Nasdaq under the ticker symbol ‘NANO’.

(Reporting by Manya Saini in Bengaluru; Editing by Shreya Biswas and Diti Pujara)