Sivers Announces Spin-Out of Photonics Division into SPAC

Sivers Semiconductors, based in Sweden, is making strategic moves to capitalize on the growing interest in artificial intelligence by planning to spin out its photonics division into a special purpose acquisition company (SPAC). The company aims to leverage the current hype surrounding AI technologies to propel its photonics subsidiary to new heights.

The proposed spin-off involves merging Sivers Photonics, the semiconductor photonic devices arm of Sivers, with byNordic Acquisition, with plans to list the new entity in the US market. This move is expected to create a standalone, publicly traded photonics company. However, the semiconductor industry has seen several SPAC deals falter in the past, raising concerns about the success of such ventures.

Sivers Photonics, known for its expertise in indium phosphide (InP) laser sources, acquired through the purchase of CST Global in 2017, is a key player in the development of customizable lasers for AI infrastructure and sensing applications in various sectors such as data centers, consumer healthcare, and automotive LIDAR. The division has explored partnerships for a photonics fab and is poised for significant growth.

With a substantial portion of its revenue coming from the US market, Sivers Photonics plans to relocate its headquarters to Silicon Valley post-merger, while retaining its manufacturing operations in the UK. This strategic decision aims to tap into the thriving tech ecosystem in Silicon Valley while maintaining its manufacturing capabilities in a region known for its expertise in photonics.

The photonics subsidiary boasts a rich portfolio of technologies supported by years of research and development, with multiple patents pending across various jurisdictions. With a dedicated team of 80 staff, Sivers Photonics is well-positioned to meet the increasing demand for AI-driven solutions that require advanced photonics technology.