Besi eyes 2025 surge in hybrid bonding demand after Q3 orders miss estimate
Adds share move in paragraph 2, detail on sales and margin in paragraph 8, analyst comment in paragraph 11
By Dagmarah Mackos
Oct 24 (Reuters) -BE Semiconductor Industries BESI.AS (Besi) expects a rise in demand for its hybrid bonding systems in 2025 following shipment delays in the fourth quarter, the chipmaking parts supplier said on Thursday, after third-quarter new orders missed estimates.
Besi's stock, down about 26% this year, was up around 4% at 0825 GMT, recovering from a drop in early trading.
The Dutch company said it received substantial orders for hybrid bonding systems from both existing and new customers and anticipated additional orders in the fourth quarter as global adoption continues to expand.
As appetite for AI technology grows, Besi is banking on its hybrid bonding tools used to create tighter interconnections inside a chip, but a slower than expected recovery in automotive and smartphone markets, along with high inventories, are raising concerns about global semiconductor demand.
Besi expects a sharp increase in demand for these systems in 2025, and plans to double its cleanroom facilities in Malaysia to meet it, it added. Cleanrooms are controlled environments that minimise contamination, key for hybrid bonding semiconductor equipment manufacturing.
In the third quarter, strong growth in computing end-user markets, including hybrid bonding, photonics and AI applications, was partially offset by ongoing weakness in automotive and Chinese markets, a trend the company expects to persist throughout the year, it said.
The company's order bookings fell 18% quarter-on-quarter to 151.8 million euros ($164 million) in the three months to the end of September, compared with an estimate of 177 million euros cited by Visible Alpha analysts.
Sales, gross margin, and net profit were broadly in line with Visible Alpha's estimates of 153 million euros, 65.2%, and 44 million euros, respectively.
For the fourth quarter, the company sees flat revenue, with an estimated variation of 10%, compared with 156.6 million euros in July-September, and a gross margin of 63-65%, down from 64.7% in the third quarter.
Besi blamed a delay by an unidentified customer in taking delivery of hybrid bonding systems due in the fourth quarter.
Analysts said order delays were not a surprise, given the prolonged industry weakness and struggles of Besi's customers such as Samsung Electronics 005930.KS and Intel INTC.O.
Following strong pandemic demand, chipmakers built excess capacity, but as supply chain issues eased, they delayed new tool orders until their factories neared full capacity.
($1 = 0.9267 euros)
Reporting by Dagmarah Mackos; Editing by Mrigank Dhaniwala, Mark Potter and Emelia Sithole-Matarise
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
