BE Semiconductor Industries (BESI) investor relations material

Strategic overview and market developments

• Long-term revenue target raised to EUR 1.7–2.2 billion, reflecting 15% growth over last year and up from EUR 1.5–1.9 billion previously, driven by AI infrastructure build-out and advanced packaging demand.

• Significant improvement in market conditions and order growth since Q2 2025, with net margin rebounding above 30% and gross margins above 60%.

• AI-driven computing now exceeds 50% of business mix in 2025, overtaking mobile, with strong growth in data center, photonics, and automotive segments.

• Expansion of manufacturing and support footprint in Asia, US, and Vietnam to meet rising demand and ensure operational scalability.

• China remains a key market with local manufacturing, but focus is on high-end applications due to intense local competition.

Technology and product innovation

• Hybrid bonding adoption accelerating across logic, memory (HBM4E, HBM5), and co-packaged optics (CPO), with over 20 customers and 25+ joint R&D engagements.

• New hybrid bonders with 50 nm accuracy entering beta testing, with roadmap to sub-50 nm accuracy and higher throughput for high-volume manufacturing by 2027.

• Partnership with Applied Materials enables integrated hybrid bonding solutions and process development, supporting customer yield and scalability.

• Significant new product launches, including hybrid bonded CPUs and GPUs from major industry players.

• Fluxless thermocompression (TC) technology gaining traction in memory, photonics, and quantum computing applications.

Financial guidance and business model

• Operating margin target increased to 45–55%, with gross margin guidance at 64–68%.

• Addressable market for mainstream die attach raised to EUR 1.6 billion by 2030, up 8% from last year, with advanced segments driving growth.

• Hybrid bonding TAM increased, especially for CPO, with low-case model up 18% and high-case up 12% versus prior year.

• Service revenues expected to accelerate as hybrid bonding moves into front-end fabs, with warranty delays explaining recent flatness.

• Capacity expansion underway, with Vietnam ramping up to support future demand beyond current 300 bonders/year.