The race to invest in artificial intelligence (AI) is spreading beyond semiconductors and data centers to the materials industry. As big tech corporations pour massive expense into building AI infrastructure, specialty materials companies needed for semiconductor manufacturing and server operations are emerging as new investment destinations.
On the 6th (local time), according to Reuters and the Financial Times (FT), U.S. advanced materials corporation Solstice Advanced Materials agreed to acquire electronic chemicals corporation Element Solutions for $14.5 billion (about 22 trillion won). The transaction, to be conducted in a combination of cash and stock, is expected to close in the first half of next year.
Solstice is a corporation spun off from Honeywell's advanced materials division that produces refrigerants and specialty materials. Element Solutions supplies chemical materials needed in semiconductor and electronics manufacturing processes. The acquisition comes as competition to secure related supply chains expands with the growth of the AI industry. FT reported, "Solstice aims to strengthen its position in the AI supply chain through this transaction."
The two companies plan to strengthen competitiveness in electronic materials and cooling solutions through the merger. The combined company will keep the Solstice corporate name. According to Reuters, the merged corporation is expected to be valued at about $29 billion (about 44 trillion won). Solstice also expects expense savings of more than $180 million (about 274.8 billion won) annually within three years after the merger.
Competition in the AI industry is expanding beyond securing high-performance semiconductors to the broader related infrastructure. As Generative AI services spread and investment in data centers surges, not only materials needed for producing AI chips but also cooling technologies that solve heat generated during server operations have grown in importance.
AI data centers use more power than conventional data centers and are packed with high-performance semiconductors, making efficient operations technology a key task. As a result, corporations that have electronic chemical materials used in semiconductor manufacturing processes and technologies that improve data center operating efficiency are drawing attention.
Industry officials see the acquisition as a sign that the scope of the AI investment race is widening. They say the competition for leadership in the AI era is spreading not only to semiconductor design corporations but also to materials, equipment, and infrastructure corporations that enable production and stable operation. In particular, as the race to build AI data centers continues, competition to secure related supply chains is expected to intensify further.