BE Semiconductor Industries (BESI) Investor Day 2024 summary

Strategic direction and market outlook

• AI is the primary growth driver, shifting focus from miniaturization to advanced packaging and integration, especially in data centers, mobile, and automotive sectors.

• Generative AI adoption is accelerating, with 35-40% of orders now AI-related; R&D is expanding to deliver comprehensive AI assembly solutions.

• Market share in assembly and die attach has increased, with a strong position in advanced packaging and a focus on communication, data, and automotive markets.

• The industry is in a cyclical downturn, but a return to growth is expected from H2 2024, accelerating into 2025–2027, driven by new technology ramps.

• R&D investment is rising to address increasing complexity, with a focus on maintaining high margins and strong liquidity.

Technology and product development

• Hybrid bonding and advanced die attach technologies are critical for next-gen chiplet and HBM applications, with adoption broadening from logic to memory and photonics.

• Hybrid bonding is now the industry standard for sub-10 micron bump pitches, with a second-generation bonder (100 nm accuracy) in high-volume production and a third-generation (50 nm) in development.

• All major logic and memory players, including AMD, Intel, Samsung, Micron, and OSATs, are adopting hybrid bonding, with rapid expansion beyond initial adopters.

• CoWoS and photonics are fast-growing segments, with integrated solutions for both chip-to-wafer and on-substrate assembly, and strong traction in data center and mobile applications.

• Edge AI and mobile devices are expected to drive the next wave of hybrid bonding adoption, with increasing demand for high compute power at low energy consumption.

Financial guidance and business model

• Targeting revenues of over €1 billion in the next upcycle, with gross margins consistently above 65% and operating margins between 62–66%.

• Over €430 million was returned to shareholders last year, with a total of €2 billion over the past decade.

• Pricing for hybrid bonders increases with each generation, with the latest models commanding a premium of about €500,000 over previous versions.

• The business model emphasizes flexibility, multiple sourcing, and maintaining margins through cycles, with a focus on picking winners in key growth markets.

• Market modeling for hybrid bonding has been upgraded, reflecting broader adoption and higher confidence in growth, especially in logic, memory, and edge AI.