Applied Materials Agrees to Raise Its Stake in Besi to About 20%
Key Facts
Applied Materials announced an agreement on October 26 to increase its investment in Besi to about 20% of its outstanding shares, deepening a strategic partnership focused on advanced chip packaging technologies. The company said the agreement includes a share purchase, but delivery remains conditional on the expiration or termination of the statutory waiting period under the U.S. Hart-Scott-Rodino Act. The increase in the stake was therefore not complete when the agreement was announced. The targeted stake represents about one-fifth of Besi's outstanding shares. The move comes as interconnect and integration technologies grow in importance in developing computing systems linked to artificial intelligence.
Applied Materials began investing in Besi by purchasing 9% of its outstanding shares in April 2025. The new move shifts the relationship from an initial minority stake to a targeted investment of about 20%, alongside an expansion of the technical cooperation. Applied said it does not currently intend to increase its investment above this approximate level, and is not seeking representation on Besi's board. These stated limits set a clear framework for the targeted stake and the nature of the relationship between the companies. The initial investment was made through market transactions, Besi said when it announced the stake in April 2025.
The partnership between the companies dates to 2020, and its scope expanded in October 2026 to include cooperation at the EPIC center and the joint development of new interconnect and integration technologies beyond hybrid bonding. The announced areas include expanding 3D integrated circuits, integrating logic and memory, and extending thermal compression bonding. The cooperation also covers die-to-die or die-to-wafer integration platforms. These areas aim to improve how semiconductor components are assembled and connected within more integrated architectures. Prabhu Raja, president of Applied's Semiconductor Products Group, said hybrid bonding and new interconnect architectures are "increasingly important enablers of energy-efficient AI computing performance."
Besi's latest operating results reflect strong demand for its equipment. Orders reached 342.6 million euros in the third quarter of 2026, up 17.0% from the second quarter and 96.1% from the third quarter of 2025. The company attributed the increase mainly to orders for hybrid bonding equipment and demand related to data centers and AI-powered computing. Revenue also reached 283.4 million euros, up 13.4% from the previous quarter, driven mainly by increased shipments for data center and AI applications. This performance highlights the connection between Besi's business and the sectors targeted by the technical partnership.
Besi's net income rose to 107.2 million euros in the third quarter, up 20.4% from the second quarter and 323.7% from the same period a year earlier. The company said revenue growth and disciplined expense management contributed to improved profitability. Net cash reached 246.6 million euros on September 30, 2026, up 82.6 million euros from June 30, with the increase attributed mainly to improved profitability and operating cash flows. Besi also announced the launch of a new 100 million euro share buyback program in October 2026. These figures provide financial context for the partnership's expansion, alongside the demand and revenue indicators.
Applied Materials is scheduled to hold its fourth-quarter and fiscal 2026 earnings conference on November 12, 2026. The date follows the announcement of the agreement to increase its investment, while share delivery remains tied to meeting the statutory waiting-period condition. The company's current statement sets the targeted stake at about 20%, with no stated intention to exceed it or seek a board seat. The announced partnership is also focused on developing semiconductor packaging, interconnect and integration technologies. The earnings conference is the company's next scheduled event on its calendar following the deal announcement.