Applied Materials expands portfolio, acquires largest stake in BESI

NETHERLANDS – Applied Materials, one of the world’s leading suppliers of semiconductor manufacturing equipment, has acquired a 9% stake in Dutch firm BE Semiconductor Industries (BESI).

According to LSEG data, the move makes Applied Materials the largest shareholder in BESI, surpassing investment giant BlackRock Institutional Trust.

The acquisition is being hailed as a strategic play in the increasingly competitive field of semiconductor packaging, particularly around hybrid bonding technology, a vital method used in manufacturing cutting-edge chips.

Shares of BESI surged 9% in early trading following the announcement, positioning the stock for its biggest single-day gain in over a year if momentum continues.

BESI is recognized globally for producing the most precise hybrid bonding equipment.

This technology is crucial for stacking chips directly on top of one another, enhancing chip performance and enabling more compact designs.

It plays a key role in producing high-performance processors like AMD’s X3D series, which are assembled using hybrid bonding techniques at Taiwan Semiconductor Manufacturing Company (TSMC).

Analysts view the move as a clear signal that Applied Materials intends to deepen its collaboration with BESI rather than develop competing hybrid bonding solutions.

“This is an astute move by Applied Materials to foster closer collaboration,” said Timm Schulze-Melander, analyst at Redburn Atlantic.

“It also signals that Applied is unlikely to launch a rival hybrid bonding technology.”

Hybrid bonding is distinct from other chip packaging methods because it occurs closer to the front-end manufacturing process.

This allows Applied Materials’ existing tools to integrate seamlessly with BESI’s bonding systems, further strengthening the business case for partnership.

Market watchers speculate that the 9% stake could be the first step toward a larger acquisition.

“I think shareholders will be extremely excited and assume that Applied will eventually want to buy the entire company,” noted Michael Roeg, analyst at Degroof Petercam.

Despite the speculation, Applied Materials has clarified it does not currently plan to seek representation on BESI’s board.

For its part, BESI reaffirmed its commitment to maintaining independence, echoing statements made in November 2024 when rumours of a strategic deal first emerged.

With hybrid bonding poised to become a cornerstone of next-generation semiconductor design, Applied Materials’ investment in BESI underscores its strategic intent to lead in advanced chip packaging while supporting global chipmakers’ innovation roadmaps.

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