U.S.-based semiconductor equipment and advanced materials company Forge Nano plans to go public through a $1.6 billion blank-check deal with Archimedes Tech SPAC Partners, according to the company.
This deal comes amid an increasing demand for AI chips as companies continue to spend on data centers and high-performance computing to support generative AI applications. The 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.
It is expected that the deal will 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. This offers a quicker alternative than a traditional IPO.
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SPAC mergers hit record levels in 2020 and 2021, and many big names on Wall Street, including SPAC mergers hit record levels in 2020 and 2021 have bet on them, considering it the next big thing in listings. However, in subsequent years, the activity saw a sharp decline amid regulatory scrutiny.
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 say they 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”.
Forge Nano recently entered into a joint development agreement to evaluate atomic layer deposition (ALD) coating technology on natural graphite from its Lac Knife project in Québec, Canada. The project will find out whether ALD-coated graphite can improve key battery performance parameters, including cycle life, fast-charging capability and durability under demanding operating conditions. Around 2kg (4.4lbs) of graphite from the Lac Knife deposit will be processed and tested under multiple coating conditions.
Under the agreement, Focus Graphite will supply uncoated natural graphite, while Forge Nano will carry out coating, analytical testing and electrochemical evaluation. The work is intended to generate a performance data package to support future scale-up decisions, customer engagement and potential commercial agreements.