Shares in BE Semiconductor Industries (Besi), the Dutch maker of semiconductor assembly and packaging equipment, rose sharply on Tuesday after US rival Applied Materials announced it would nearly double its stake in the company. By early afternoon in Amsterdam, Besi's stock was up more than 10%, trading above €160.
The move, disclosed late on Monday, will see Applied Materials increase its holding from 9% to approximately 20%. The California-based company said it had signed an accelerated share purchase agreement, with the transaction subject to a review under US antitrust law.
In a statement, Applied Materials described the investment as long-term and said it had no intention of increasing its stake beyond 20%. It also ruled out seeking a seat on Besi's board.
The two companies have been working together since 2020 on hybrid bonding, a technique that connects chips directly without solder bumps, allowing them to be stacked more tightly. This method is seen as crucial for the next generation of AI processors and memory, where energy efficiency and performance are paramount.
Prabu Raja, president of Applied's semiconductor products group, said the increased stake reflects the growing importance of hybrid bonding and next-generation chip interconnection technologies for energy-efficient AI computing. "We also look forward to furthering our strategic collaboration with Besi," he added.
The partnership was expanded on 1 October, when Besi became an "innovation partner" at Applied's new research and development hub in Silicon Valley, the EPIC Center. In that joint statement, Raja noted that advanced packaging had evolved from a back-end assembly step into a materials engineering challenge. Besi's CEO Richard Blickman called joining the centre "a natural next step".
Why not a full takeover?
Applied's decision to cap its stake at 20% keeps it well below the 30% threshold under Dutch takeover rules, which would oblige it to make an offer for the entire company. A full acquisition would also face scrutiny in Beijing, as both companies sell heavily into China. Roughly 30% of Applied's 2025 revenue came from China, while Besi operates a factory in Leshan, in Sichuan province.
Applied has been here before. In 2021, it abandoned a planned acquisition of Japanese chip equipment maker Kokusai Electric after failing to secure Chinese regulatory approval in time.
The investment comes after a sharp decline in Besi's share price, which has fallen about 50% from its June peak of €317, amid a broader sell-off in chip stocks. The move signals confidence in the long-term outlook for advanced packaging, even as near-term market sentiment remains cautious.
For the Netherlands and Europe, the deepening ties between Besi and Applied underscore the continent's role in the global semiconductor supply chain, particularly in the niche but critical area of chip packaging. While Europe lags in leading-edge chip manufacturing, its equipment makers remain vital partners for the industry's biggest players.
