Dutch-based BE Semiconductor Industries (Besi) reported an 8.2% rise in order bookings for Q1 2025, totaling €131.9 million (US$150.1 million).

The increase was driven by higher demand for AI-related applications in data centers from Asian subcontractors.

The company saw significant orders for its hybrid bonding technology, including HBM 4 applications and follow-on orders from an Asian foundry for logic applications, according to CEO Richard Blickman.

However, Besi’s revenue fell by 6.1% compared to the previous quarter, reaching €144.1 million (US$164.35 million). This decline was due to lower shipments in the mobile and automotive sectors.

The company expects revenue to remain stable in Q2, with a potential variation of 5%.

🔗 Source: CNA

🧠 Food for thought

1️⃣ Hybrid bonding’s strategic importance grows as AI chip architecture evolves

Besi’s rising orders for hybrid bonding technology highlight its critical role in next-generation AI chip design, where performance is increasingly limited by interconnection rather than transistor density.

This technology enables direct copper-to-copper atomic bonds between chiplets with alignment precision of less than 10nm, reducing latency and power consumption by up to 50% compared to traditional packaging methods 1.

Applied Materials’ recent 9% stake acquisition in Besi further validates this technology’s importance, forming a strategic partnership specifically focused on advancing hybrid bonding capabilities 1.

The market recognizes this potential with industry projections showing hybrid bonding alone could account for $12 billion in annual equipment spending by 2027, becoming essential as analysts predict 70% of AI chips will utilize advanced packaging by 2026 1.

This shift represents a significant change in chip architecture philosophy, with manufacturers increasingly focusing on how chips connect rather than just how densely transistors can be packed.

2️⃣ Market bifurcation creates winners and losers in semiconductor equipment

Besi’s financial results reveal a stark contrast between surging demand for AI-related applications and weakness in traditional markets like mobile and automotive, illustrating a growing bifurcation in the semiconductor equipment sector.

The company’s revenue fell 6.1% quarter-on-quarter to €144.1 million while simultaneously booking 8.2% more orders (€131.9 million), demonstrating how AI demand is offsetting but not fully compensating for traditional market weakness 2.