The Dutch supplier of chipmaking parts, BE Semiconductor Industries (Besi), forecasts flat third-quarter revenues.
BE Semiconductor Industries (Besi), a Dutch supplier of chipmaking parts, predicted flat third-quarter sales on Thursday. The sales were below estimates, mostly due to lackluster growth in mainstream assembly markets in China. Higher orders for its AI and other sophisticated packaging technologies in the second quarter, it claimed, only partially made up for that deficit. By 0822 GMT, Besi’s shares had already dropped 8.5% the day before when rival ASM Pacific Technology (0522.HK), a Hong Kong-listed company, likewise revealed unsatisfactory earnings and an uncertain future.
Since around half of Besi’s new orders come from AI applications, Degroof Petercam said in a note that mainstream business may be experiencing a deeper slowdown than the stated data suggests. “PC and smartphone shipments are ex-growth, automotive, industry, and consumer electronics end markets have been sluggish, and sales of the foundry sector are going nowhere, with TSMC (2330.TW) being the sole AI-driven exception,” Degroof stated.
Besi stated that because semiconductor manufacturers’ inventory levels are still high, the sluggish recovery in the high-end smartphone, automobile, and industrial markets was to be expected. The manufacturer of chip assembly equipment predicted that third-quarter sales would roughly match the second quarter’s reported sales of 151.2 million euros ($163.9 million). Besi has been counting on chipmakers to use its hybrid bonding solutions more widely due to the surge in demand for AI-enabling technologies. Besi’s best-selling product, hybrid bonding, makes connections inside chips tighter.
CEO Richard Blickman stated in a statement, “We anticipate additional share gains in the next market upturn as node sizes shrink further and placement accuracy increases.” In the second quarter, order bookings increased to 185.2 million euros, exceeding the 179 million euros predicted by analysts. Besi reported that it got 29 orders for its newest generation 100 nm accuracy technology, which is used in 3D logic applications, from two clients during the quarter.
As chipmakers scale up capacity for high-volume manufacture next year, Besi, whose clients include AI chip giant Nvidia (NVDA.O.), anticipates more bookings in the second half of 2024 from the largest contract chipmaker in the world, TSMC.
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