Applied Materials Announces a Strategic Investment in BE Semiconductor Industries

Rhea-AI Summary

Applied Materials (AMAT) has acquired 9% of BE Semiconductor Industries (Besi) common stock through market-based transactions, strengthening their ongoing collaboration in hybrid bonding technology. The companies have been working together since 2020 and recently extended their agreement to develop the industry's first fully integrated equipment solution for die-based hybrid bonding.

The strategic investment highlights AMAT's commitment to advancing hybrid bonding technology, which is becoming important for advanced semiconductor packaging. This technology enables direct copper-to-copper bonds between chips, resulting in improved performance, reduced power consumption, and lower costs - particularly important for advanced logic and memory chips used in AI applications.

The co-developed integrated hybrid bonding system combines Applied's front-end wafer and chip processing expertise with Besi's die placement, interconnect, and assembly solutions. AMAT stated it won't seek board representation or purchase additional Besi shares.

Positive

• Strategic 9% stake acquisition in Besi strengthens existing technological partnership
• Successfully developed integrated hybrid bonding system ready for high-volume manufacturing
• Technology enables improved chip performance and reduced power consumption
• No regulatory approvals required for the investment

Negative

• None.

Insights

Semiconductor Industry Analyst

Applied Materials' 9% stake in Besi represents a significant strategic move in the advanced packaging space, particularly for hybrid bonding technology - a critical capability as the industry shifts toward chiplet architectures and heterogeneous integration.

Hybrid bonding creates direct copper-to-copper connections between chips, enabling higher interconnect density and shorter wiring between chiplets. This translates to three key advantages: enhanced performance, reduced power consumption, and improved cost economics - the semiconductor industry's eternal trifecta of goals.

This investment deepens a four-year collaboration that has already produced an integrated hybrid bonding system ready for high-volume manufacturing. What's particularly notable is how this combines Applied's front-end wafer processing expertise with Besi's back-end assembly capabilities, creating a comprehensive solution across what were traditionally separate manufacturing domains.

The specific emphasis on AI applications is telling. As AI accelerators and high-performance computing drive semiconductor development, packaging technologies that can efficiently connect multiple chiplets have become as important as traditional node scaling. By strengthening its position in hybrid bonding, Applied is targeting a high-growth segment of the semiconductor equipment market that will be essential for next-generation AI chips.

While the market-based transaction doesn't require regulatory approval and Applied has explicitly stated it doesn't seek board representation, this stake establishes a deeper relationship than mere partnership and potentially positions Applied for future opportunities in the advanced packaging landscape.

Purchased 9 percent of outstanding shares to build upon four years of successful collaboration on hybrid bonding technology for advanced packaging

SANTA CLARA, Calif., April 14, 2025 (GLOBE NEWSWIRE) -- Applied Materials, Inc. today announced it has purchased 9 percent of the outstanding shares of the common stock of BE Semiconductor Industries N.V. (Besi), a leading manufacturer of assembly equipment for the semiconductor industry.

Applied and Besi have been successfully collaborating since 2020, and recently extended their agreement, to co-develop the industry’s first fully integrated equipment solution for die-based hybrid bonding. Hybrid bonding is becoming a critical technology for advanced packaging of semiconductors as designers and manufacturers race to develop more energy-efficient chips. Hybrid bonding connects chips using direct copper-to-copper bonds, which increases density and shortens the lengths of interconnect wiring between chiplets, resulting in improved overall performance, power consumption and cost.

“We view this as a strategic, long-term investment that demonstrates Applied Materials’ commitment to co-developing the industry’s most capable hybrid bonding solution, a technology that is becoming increasingly important to the advanced logic and memory chips at the foundation of AI,” said Terry Lee, Corporate Vice President and General Manager, Heterogeneous Integration and Packaging at Applied Materials. “We look forward to furthering our collaboration with Besi and delivering innovative technology to our customers.”

Applied Materials and Besi have co-developed an integrated hybrid bonding system, which has the full capabilities chipmakers need to take the technology to very high-volume manufacturing over the next several years. The system brings together Applied’s expertise in front-end wafer and chip processing with high levels of bonding accuracy and speed from Besi’s leading die placement, interconnect and assembly solutions.

The investment was made through market-based transactions and is not subject to regulatory approvals. Applied does not intend to seek board representation at Besi, nor does it have plans to purchase additional shares of Besi common stock.

About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future. Learn more at www.appliedmaterials.com.

Applied Materials Contact:
Ricky Gradwohl (editorial/media) 408.235.4676
Liz Morali (financial community) 408.986.7977

FAQ

What percentage stake did Applied Materials (AMAT) acquire in Besi?

Applied Materials acquired a 9% stake in BE Semiconductor Industries (Besi) through market-based transactions.

How long have Applied Materials and Besi been collaborating on hybrid bonding technology?

The companies have been collaborating since 2020, with a recent extension of their agreement.

What are the benefits of hybrid bonding technology for semiconductor manufacturing?

Hybrid bonding enables direct copper-to-copper bonds, increasing density and shortening interconnect wiring between chiplets, improving performance, power consumption, and cost.

Will Applied Materials (AMAT) seek board representation at Besi?

No, Applied Materials stated it does not intend to seek board representation or purchase additional Besi shares.

What is the strategic importance of AMAT's investment in Besi for AI chip development?

The investment strengthens their collaboration on hybrid bonding technology, which is important for advanced logic and memory chips that form the foundation of AI applications.