BE Semiconductors

Ever heard of hybrid bonding?

Without hybrid bonding, AI chips face performance problems, lack power efficiency, and encounter scalability trade-offs.

Hybrid bonding is an advanced semiconductor packaging technology that enables high-density 3D integration by combining dielectric bonding with embedded copper interconnects. Unlike traditional solder-based methods, it creates direct copper-to-copper connections at ultra-fine pitches (sub-10µm), eliminating solder bumps and enabling thinner, more efficient chip stacking. 

Applications span high-performance computing, AI accelerators, and memory (e.g., AMD’s 3D V-Cache, HBM DRAM), where it reduces power consumption, thermal resistance, and package thickness compared to flip-chip soldering.

Why BE Semiconductor (Besi) Leads the Market

Besi dominates hybrid bonding through:

1. Technological Superiority

• Datacon 8800 CHAMEO Ultra Plus: Delivers submicron alignment accuracy (<100 nm), superior warpage control, and high throughput for room-temperature bonding.

• Optical Alignment Systems: Enable <500 nm placement precision critical for multi-die systems (e.g., AMD’s chiplet-based CPUs).

2. Strategic Collaborations

• Partners with TSMC and Intel for 3D SoIC and HBM integration.

• Collaborates with Applied Materials to co-optimize die-to-wafer processes.

3. Market Validation

• Secured a 26-system order (worth ~€78M) from a top logic chipmaker (likely Intel) in 2024.

• Powers NHanced Semiconductors’ U.S.-based “Foundry 2.0” for advanced 3DIC packaging.

4. Yield and Cost Efficiency

• Reduces defect rates in multi-chiplet stacks, where a single misalignment can scrap entire batches.

• Enables cost-effective heterogeneous integration by slashing R&D costs for monolithic designs.

With hybrid bonding poised to grow at ~35% CAGR (2023–2030), Besi’s expertise in precision bonding systems positions it as the backbone of next-gen semiconductor manufacturing.

WHY BESI IS A BUY RIGHT NOW

Despite the sharp drop in share price since February 2024, BESIY's fundamentals are still intact.

The company is a market leader, and has excellent financials and attractive growth prospects.

The dividend yield is currently 1.7%, but the high dividend growth could make it an interesting long-term investment case.

The order intake was somewhat disappointing in the Q3-2024 numbers, but in my opinion, this is only short-term noise. Based on discounted cash flow analysis, BESIY is currently fairly valued

Be Semiconductors is on top of my watchlist right now. Access my complete watchlist in our community.

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