AI boom boosts Besi despite slower China markets in Q2

BE Semiconductor Industries (Besi), a Dutch company, got more new orders than expected because of higher demand for AI-related systems. This made up for slower growth in China and other areas.

BE Semiconductor Industries Besi, a Dutch company that makes parts for chipmakers, had more new orders than expected for the second quarter on Thursday. This was due to higher demand for its systems used in AI and other advanced packaging applications, which helped to make up for slower growth in China and other standard assembly markets.

Besi is betting that chipmakers will use more of its hybrid bonding tools as demand for AI-enabling technology grows. This comes after a slow start to the year due to weakness in standard assembly markets.

The best product that Besi makes for making links inside a chip tighter is hybrid bonding. In the three months ending in June, the company that makes tools for putting together chips got 185.2 million euros ($200.74 million) in new orders

The most orders that were placed in the first three months of 2024 were worth 128 million euros. Besi has 29 orders for hybrid bonding systems from two customers during the quarter. These orders will be delivered in the fourth quarter of 2024 and the first quarter of 2025. Besi’s customers include Nvidia, the world’s largest contract chipmaker TSMC, and Samsung Electronics.

CEO’s Statement and Future Expectations

CEO Richard Blickman said in a statement that all of those orders were for Besi’s newest 100 nm accuracy system, which is used in 3D logic applications. Blickman also said that Besi expects more sales in the second half of this year as customers plan to make more things in 2025. The company thinks that its sales will stay about the same in the third quarter compared to the second quarter, when they were 151.2 million euros. The gross margin will be between 64% and 66%, down from 65% in the second quarter.