Adisyn Nails First Step Toward Graphene Powered Chips

Strong Progress for Adisyn as Graphene Chip Foundations Fall Into Place

Adisyn (ASX: AI1) announced on 17 November that its semiconductor IP arm, 2D Generation, has validated a critical early step in the process of building graphene interconnects inside computer chips. For investors who may be new to this space, one of the first stages before graphene wires can be patterned onto a chip is preparing the wafer surface. It must be perfectly clean and perfectly smooth. AI1 confirmed today that its new equipment can now perform this foundation step to the required standard.

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With Step One Complete, Adisyn Begins the Real Test: Growing Graphene

This may sound simple, but it is one of the points in semiconductor manufacturing where everything can fall apart. If the early processes are not done with precision, the entire production run suffers. Yield collapses. More chips come off the line faulty. Costs rise. Commercial progress slows. This is why we see the announcement as more meaningful than it first appears. AI1 is proving that it can execute on the basics, and in semiconductors, the basics often determine who actually reaches commercial scale and who does not.

Now that AI1 has shown strong progress on the first stage, the next step is far more technical and far more important. The company will move into experiments aimed at actually growing the graphene layer itself. Over the coming months, AI1 will test which carbon-based chemicals produce the highest quality graphene and how to fine-tune the growth conditions. This involves adjusting temperature, gas pressure, and timing to ensure the final graphene film is smooth and consistent. For a technology that ultimately needs to compete with copper inside advanced chips, this stage will determine how competitive AI1 can become.

Sum of parts valuation

For investors, it is worth remembering that Adisyn is a Pitt Street Research client and our current sum of parts valuation remains at 29 cents per share. This is made up of 22 cents for 2D Generation and 7 cents for the legacy operations. With the stock trading at A$0.07, the gap between price and fundamental value is wide. In our view, as AI1 continues to deliver on its research and development milestones and proves each step of its graphene technology, the potential for a meaningful rerating increases.

The Chip Shrinking Problem That Graphene Is Designed to Fix

As transistors and the cells within a chip keep shrinking, each new generation becomes more energy efficient, more powerful per unit, and cheaper to manufacture because more circuitry can be packed into the same space. Copper has been the industry standard for connecting these tiny transistors because it is highly conductive and reliable. Its role is simple but essential. Copper forms the interconnects that carry signals between different parts of the chip, allowing everything to work together.

The challenge is that copper begins to break down when you push below the 10-nanometer scale. Once the wires become extremely thin, copper becomes much more resistive, which means electrons struggle to move through it. The chip must use more energy to push signals through these narrow pathways, which increases heat and reduces efficiency. It also slows down how quickly data can move across the chip. On top of that, very thin copper lines suffer from electron leakage. Manufacturers need to add extra barrier layers to stop this leakage, and these layers add cost, complexity, and further limit how small the wiring can go.

This is the bottleneck the industry is now facing, and it is exactly the gap graphene-based interconnects aim to solve.

The investor’s takeaway for AI1

The takeaway for investors is that as semiconductor innovation keeps moving forward, the industry is being pushed toward new processes that must deliver higher performance while using less energy. Adisyn is positioning itself right at this frontier. It is focusing on a part of the chip that most people overlook, yet it plays a major role in how fast electricity and data can move through a device. If graphene interconnects work as intended, they could become a core enabler of the next generation of chip design.

The main risk investors need to keep front of mind is funding. The company has about a year of cash left with roughly A$7M on hand and no debt. This is still an early stage and speculative business, so execution remains critical. Adisyn needs to show that it can scale its technology beyond the lab and eventually reach a point where it can meaningfully compete with copper, a material that has been deeply embedded in semiconductor manufacturing for decades. The upside is clear, but the path requires careful monitoring.