Applied Materials acquires stake in Besi

SANTA CLARA, Calif. - Applied Materials, Inc. (AMAT), a semiconductor industry leader with a market capitalization of $117.92 billion and strong financial health according to InvestingPro analysis, has acquired a 9 percent ownership in BE Semiconductor Industries N.V. (Besi), a prominent supplier of semiconductor assembly equipment. This move comes as the two companies deepen their collaborative efforts, which began in 2020, to deliver the semiconductor industry’s first fully integrated solution for die-based hybrid bonding. As a prominent player in the Semiconductors & Semiconductor Equipment industry, Applied Materials maintains a solid financial position with liquid assets exceeding short-term obligations and operates with moderate debt levels.

Hybrid bonding is a key technology in the advancement of semiconductor packaging, enabling the creation of energy-efficient chips. It involves connecting chips using copper-to-copper bonds, which allows for greater density and shorter interconnect wiring. This results in enhanced performance, lower power consumption, and reduced costs. Terry Lee, Corporate Vice President and General Manager at Applied Materials, emphasized the strategic nature of the investment, stating it reflects the company’s commitment to developing a leading hybrid bonding solution vital for advanced logic and memory chips.

The integrated hybrid bonding system developed by Applied Materials and Besi combines Applied’s expertise in wafer and chip processing with Besi’s precision in die placement and assembly. This system is designed to support high-volume manufacturing in the coming years.

Applied Materials, a leader in materials engineering solutions, made the investment through market transactions and does not require regulatory approval. The company has no intention of seeking a board position at Besi or buying additional Besi stock.

This acquisition is based on a press release statement and represents a significant step for Applied Materials in the semiconductor industry, as it continues to innovate and provide advanced technology solutions. According to InvestingPro analysis, the company appears slightly undervalued at its current price of $144.49. Investors seeking deeper insights can access comprehensive analysis and 15 additional ProTips through the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Applied Materials has announced a 15% increase in its quarterly cash dividend, marking a continuation of its eight-year trend of dividend growth. The company also introduced a new $10 billion share repurchase program, supplementing an existing plan with $7.6 billion remaining. Additionally, Applied Materials secured a $2 billion revolving credit facility with Bank of America, replacing a prior $1.5 billion line, offering increased financial flexibility until 2030. Shareholders have approved executive compensation and elected all ten director nominees during the company’s Annual Meeting. The ratification of KPMG LLP as the independent auditor for fiscal year 2025 was also confirmed. In product developments, Applied Materials launched the SEMVision™ H20 system, an advanced chip defect analysis tool integrating AI and eBeam technology. This new system aims to improve defect detection in semiconductor chips. Furthermore, the company has been part of a positive trend in the chip industry, with its stock seeing a rise alongside other chipmakers following Broadcom’s upbeat forecast.

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