Applied Materials Doubles Down on Besi as Hybrid Bonding Demand Rises

Applied Materials is turning a technology partnership with BE Semiconductor Industries into a much larger financial commitment. The U.S. chip-equipment company entered an accelerated share-purchase agreement that would raise its Besi stake from 9% to about 20%, subject to U.S. antitrust review.

The structure matters. Applied said it does not currently intend to raise the holding beyond approximately 20% and will not seek a Besi board seat. Under Dutch rules, crossing 30% of the voting rights would generally trigger a mandatory offer for the whole company. The announced transaction therefore remains a strategic minority investment, not a takeover proposal.

Investors responded to the closer relationship. Reuters reported that Besi shares rose 8.8% to 159.20 euros in early Amsterdam trading on October 27. The move followed a steep decline from a June high of 317 euros, so part of the reaction reflects both the strategic endorsement and a depressed starting point.

The commercial logic is advanced packaging. Applied and Besi have worked together since 2020 on hybrid bonding, which connects chiplets directly and can improve density, performance and energy efficiency. These capabilities are increasingly important as AI systems combine processors and memory in tightly integrated packages.

Besi's latest results show that the opportunity is already affecting orders. Third-quarter revenue rose 113.6% from a year earlier to 283.4 million euros, and orders increased 96.1% year over year to 342.6 million euros. Besi said hybrid-bonding orders in the first nine months of 2026 more than doubled the total for fiscal 2025, while cumulative unit demand exceeded 215 systems.

There are still limits to the signal. The share delivery must clear U.S. antitrust review, Applied has not committed to buy the rest of Besi, and a larger transaction could face additional scrutiny because both companies have meaningful business in China. Reuters attributed the view that Beijing might block a full takeover to an analyst, not to either company.

For Applied Materials shareholders, the transaction is best read as a bet on packaging technology rather than an immediate earnings acquisition. The next evidence will come from the purchase closing, any financial disclosure about the investment and whether Besi's order growth converts into sustained shipments.