Applied Materials Expands Chip Packaging Push With Strategic Stake in Dutch Partner Besi

On Tuesday, Applied Materials, Inc. AMAT announced it had purchased a 9% stake in BE Semiconductor Industries (Besi), a manufacturer of assembly equipment for the semiconductor industry.

The financial terms of the transaction remain undisclosed.

Applied and Besi have been successfully collaborating since 2020 and recently extended their deal to co-develop the fully integrated equipment solution for die-based hybrid bonding.

Also Read: Applied Materials Hikes Dividend For 8th Year, Greenlights $10 Billion Buyback to Reward Investors

Hybrid bonding is becoming a critical technology for advanced packaging of semiconductors to develop more energy-efficient chips.

Applied Materials and Besi have co-developed an integrated hybrid bonding system with the full capabilities chipmakers need to take the technology to very high-volume manufacturing over the next several years.

The system combines Applied’s front-end wafer and chip processing expertise with bonding accuracy and speed from Besi’s die placement, interconnect, and assembly solutions.

Applied Materials does not plan to purchase additional stock and will not seek board representation at Besi.

The company held $8.2 billion in cash and equivalents as of January 26.

Applied Materials expects second-quarter revenue of $6.7 billion—$7.5 billion versus the analyst consensus estimate of $7.21 billion. The company expects adjusted EPS of $2.12–$2.48 versus the analyst consensus estimate of $2.30.

Goldman Sachs Toshiya Hari noted Applied Materials as a long-term share gainer within the broader Wafer Fab Equipment market.

KeyBanc’s Steve Barger expects new trade restrictions with China to have a ~$400 million impact in fiscal 2025.

Price Action: AMAT stock is up 0.55% at $145.32 at the last check on Tuesday.

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