In-Depth Investment Value Analysis Report on BE Semiconductor Industries (BESI.AS)

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BE Semiconductor Industries N.V. (hereinafter referred to as “BESI” or “the Company”), a world-leading supplier of semiconductor packaging equipment, is at the core of the AI-driven semiconductor super cycle. The Company’s Q3 2025 orders grew 36.5% year-over-year, reaching €174.7 million, and the order growth momentum continued into the fourth quarter [1]. According to SEMI’s forecast, global semiconductor equipment sales will reach $133 billion in 2025 (a 13.7% year-over-year increase) and further climb to a record high of $156 billion in 2027, driven primarily by AI-related investments [2]. Leveraging its leading position in Hybrid Bonding technology, BESI is well-positioned to fully benefit from this structural growth trend. The current share price is €151.10, close to the average analyst target price of €152.64, placing the valuation in a reasonable range. However, considering the Company’s unique technological advantages and market position in advanced packaging, we believe it still offers medium-to-long-term allocation value [3].

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BESI achieved 43% year-over-year order growth in Q4 2025. This strong growth is not an accident but the result of multiple structural factors. In-depth analysis of these drivers is critical to judging the sustainability of order growth.

: According to the Company’s earnings call disclosure, 43% of its current revenue comes from the high-performance computing sector for computing and data centers, compared to just over 20% a few years ago [1]. This shift reflects the fundamental reshaping of the Company’s business structure driven by the explosive growth in AI computing demand. AI chips, especially GPUs and dedicated AI accelerators used for data center training and inference, have unprecedented requirements for packaging technology. Traditional 2D packaging can no longer meet the stringent requirements of AI chips for high bandwidth, low latency, and energy efficiency, which directly drives the rapid adoption of advanced packaging technologies.

: BESI’s technological accumulation in hybrid bonding is translating into significant commercial results. In 2024, the Company’s hybrid bonding-related revenue tripled compared to 2023, order value grew by over 100%, and the number of customers expanded from 9 to 15 [1]. Hybrid Bonding technology is a key enabler for next-generation 2.5D and 3D architectures, enabling finer interconnection density and higher performance between chips. According to MarketsandMarkets’ forecast, the global hybrid bonding market will grow from $164.7 million in 2025 to $633.9 million in 2032, representing a high compound annual growth rate (CAGR) of 21.2% [4]. The Company’s technological leadership in this field provides it with a significant first-mover advantage.

: The large-scale deployment of AI chips is accelerating the penetration of advanced packaging technologies. According to TechInsights’ 2026 Advanced Packaging Outlook Report, chiplet architectures, hybrid bonding, and new substrate technologies are becoming standard configurations for AI and high-performance computing systems [5]. TSMC continues to expand its CoWoS (Chip on Wafer on Substrate) packaging capacity to meet the needs of major AI chip customers such as NVIDIA. As a core packaging equipment supplier, BESI directly benefits from this trend.

Based on in-depth analysis of industry trends and the Company’s fundamentals, we believe BESI’s order growth has strong sustainability, but the following key variables need attention.

:

1. Sustained Expansion of AI Capital Expenditures
   : Major global technology companies (Meta, Microsoft, Google, Amazon, etc.) show no signs of slowing down capital expenditures in AI infrastructure. SK Hynix has fully booked its 2026 memory chip capacity, reflecting sustained strong demand for AI servers [6]. This trend will continue to support demand for advanced packaging equipment.

2. HBM4 Technology Upgrade Cycle
   : High Bandwidth Memory (HBM) is evolving to HBM4 technology, with 16-layer stacking technology set to become the standard configuration for next-generation AI chips. The production of HBM4 requires more advanced packaging technologies, including hybrid bonding and precision die attach technology. BESI’s die attach systems are core equipment for HBM production and will directly benefit from this technology upgrade.

3. Optimistic 2026 Guidance
   : The Company’s management stated on the earnings call that it expects 2026 business growth to be stronger than 2025, with new growth drivers including the gradual recovery of the smartphone market, continued penetration of hybrid bonding technology, and the launch of new product lines such as TCNext [1].

:

1. Macroeconomic Uncertainty
   : The semiconductor industry is highly cyclical, and a global economic slowdown may affect end demand, which in turn could impact equipment investment decisions.

2. Customer Concentration Risk
   : The main customers of semiconductor packaging equipment are a small number of large OSAT (Outsourced Semiconductor Assembly and Test) manufacturers and Integrated Device Manufacturers (IDMs). High customer concentration may lead to order volatility.

3. Valuation Pressure
   : The current price-to-earnings (P/E) ratio is approximately 80x, which is in a historically high range (the 5-year average P/E is approximately 45x). If order growth fails to continue exceeding expectations, the share price may face valuation compression risk [7].

Based on the Company’s financial data, BESI demonstrates excellent profitability and financial health [7][8]:

Financial Metric	Value	Industry Position
Gross Margin	61-63% (Q4 Guidance)	Industry-leading Level
Net Profit Margin	25.61%	Significantly Above Industry Average
ROE	34.20%	Excellent Shareholder Return Capability
Current Ratio	5.75	Extremely Strong Liquidity
R&D Expenditure Growth	31.7% (2024)	Sustained Innovation Investment

The Company’s profitability is built on its technological leadership and high-value-added product portfolio. The 61-63% gross margin is top-tier in the semiconductor equipment industry, reflecting the Company’s technological barriers and pricing power in advanced packaging equipment. The substantial growth in R&D expenditure indicates that the Company is actively preparing for the next technology cycle, laying the foundation for long-term growth.

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The semiconductor equipment industry is at the start of a new structural bull market, with the AI revolution bringing unprecedented growth momentum to the industry. According to SEMI’s year-end equipment forecast report, global semiconductor equipment sales will reach $133 billion in 2025, representing a 13.7% year-over-year increase [2]. This forecast has been raised from the previous $110.8 billion, reflecting stronger-than-expected actual demand. Looking ahead, sales are expected to reach $145 billion in 2026 and further climb to a record high of $156 billion in 2027, setting new historical highs for three consecutive years.

: As the largest segment of semiconductor equipment, WFE sales are expected to reach $115.7 billion in 2025, a 11% year-over-year increase [2]. This growth is driven primarily by the following factors: capacity expansion of DRAM and HBM to meet AI computing demand; volume production ramp-up of the 2nm Gate-All-Around (GAA) node; and continued construction of wafer fabs in China. The WFE market is expected to grow 9% in 2026 to reach $135.2 billion.

: Testing equipment is expected to grow 12% in 2026, while Assembly and Packaging (A&P) equipment is projected to grow 9.2% [2]. This segment is growing faster than the overall equipment market, reflecting the increasing importance of advanced packaging technologies. For BESI, this means the niche track where its core business is located has growth potential exceeding the industry average growth rate.

The impact of AI on the semiconductor equipment industry is systemic and in-depth, reshaping the investment logic of the entire industrial chain.

: Demand for AI accelerators and high-end processors is driving wafer foundries to accelerate the construction of advanced process capacity. TSMC, Samsung, and Intel are all actively advancing R&D and volume production of 2nm and below processes. The production of advanced logic chips requires more complex manufacturing processes and equipment, directly driving demand for frontend equipment.

: Demand for High Bandwidth Memory (HBM) from AI servers continues to exceed expectations. SK Hynix, Samsung, and Micron are all significantly expanding HBM capacity. According to Gartner’s forecast, the DRAM market will remain in short supply until Q1 2026, driven primarily by AI server demand, increased DRAM capacity in smartphones, and HBM inventory build-up [6].

: As Moore’s Law approaches physical limits, advanced packaging has become a key path to improving chip performance. Demand for advanced packaging technologies such as CoWoS and SoIC (System on Integrated Chips) has surged. According to market research data, the global advanced packaging market will grow from $41.6 billion in 2025 to $83.3 billion in 2034 [9]. The adoption of hybrid bonding technology is transitioning from the R&D phase to volume production.

: China, Taiwan, and South Korea are the top three destinations for semiconductor equipment spending [2]. Among them, equipment investment in the Chinese market is expected to gradually slow down starting in 2026 due to U.S. export control policies. Taiwan and South Korea will continue to benefit from AI chip capacity expansion. Investment in other regions such as the U.S., Europe, and Japan will grow driven by government incentive policies and the trend of supply chain regionalization.

: The semiconductor equipment market is highly concentrated. The frontend equipment market is dominated by giants such as Applied Materials, Lam Research, and ASML. The backend equipment market is relatively fragmented, with BESI holding a global leading position in die attach and chip mounting equipment. Key competitors include ASMPT, Kulicke & Soffa, and Tokyo Electron.

Investment Theme	Beneficiary Logic	Beneficiary Targets
AI Chip Packaging Equipment	Increasing Penetration of Advanced Packaging	BESI, ASMPT
HBM Equipment	HBM Capacity Expansion	BESI, Kulicke & Soffa
Hybrid Bonding Technology	Next-Generation Packaging Standard	BESI
Wafer Fabrication Equipment	Advanced Process Capacity Construction	Applied Materials, Lam Research
Testing Equipment	Increasing Chip Complexity	Teradyne, Advantest

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Based on technical analysis tool data [7]:

: BESI’s share price is currently in a range-bound pattern, with support at €139.27 and resistance at €153.78. The share price has risen 18.84% in the past 6 months and 7.16% in the past year, outperforming the Dutch AEX Index.

:

• MACD
  : No crossover signal, but maintains a bullish arrangement, indicating that the medium-term trend is still biased upward
• KDJ Indicator
  : K value 73.8, D value 74.9, J value 71.7, approaching the overbought zone, sending a bearish-leaning signal
• RSI Indicator
  : In the normal range, no overbought or oversold signal
• Beta Coefficient
  : 1.12, slightly higher volatility relative to the broader market

: Technical indicators show that the share price is in a sideways consolidation phase with no clear trend direction. There may be some short-term adjustment pressure, but the medium-to-long-term upward trend remains unchanged.

: The current P/E ratio is approximately 80x, and the P/B ratio is approximately 33x, significantly higher than historical averages [7]. Morningstar’s estimated intrinsic value is €120 per share, reflecting expectations of short-term performance pressure and valuation reversion [10].

:

Valuation Metric	BESI Value	Industry Average	Evaluation
P/E (TTM)	80.64x	~35x	Significant Premium
P/S (TTM)	20.70x	~8x	Significant Premium
EV/OCF	62.65x	~25x	Significant Premium

: According to Investing.com data, the average 12-month target price from 22 analysts is €152.64, with a high of €190 and a low of €105 [3]. Needham upgraded its rating to “Buy” on January 6, 2026, with a target price of €190 [3]. Bernstein maintained its “Buy” rating with a target price of €165.

: BESI’s high valuation reflects market recognition of its technological leadership in AI packaging equipment. The Company needs to verify the rationality of its current valuation through sustained order growth and profit improvement. If order growth continues its current momentum in 2026, there is room for further valuation expansion; conversely, it may face valuation reversion pressure.

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Considering BESI’s fundamentals, technological advantages, and valuation level, we assign an

rating.

:

1. Leading Position in AI Packaging Technology
   : BESI’s technological advantages in hybrid bonding and advanced die attach make it a core beneficiary of AI chip capacity expansion. Hybrid bonding technology is transitioning from the early adoption phase to volume production, and the Company is expected to enter a period of rapid order and revenue growth.

2. Strong Profitability and Healthy Cash Flow
   : A gross margin of over 60% and a net profit margin of over 25% provide the Company with sufficient financial flexibility to support sustained R&D investment and shareholder returns. The current ratio of 5.75 ensures strong resilience against short-term fluctuations.

3. Positive Analyst Sentiment
   : 13 out of 22 analysts have given a “Buy” rating, while only 1 recommends selling [3]. Although the current share price is close to the target price, the €190 target price from institutions such as Needham still provides approximately 25% upside potential.

4. Broad Long-Term Growth Space
   : According to SEMI’s forecast, the semiconductor equipment market will reach $156 billion in 2027, representing a 50% increase from $104 billion in 2024 [2]. As an important player in the backend equipment sector, BESI is expected to outperform the industry average growth rate.

:

1. Valuation Risk
   : The current 80x P/E ratio has fully priced in market expectations; if order growth or earnings fail to exceed expectations, the share price may face significant adjustments.

2. Customer Concentration Risk
   : The Company’s revenue mainly comes from a small number of large customers, which may lead to significant order volatility.

3. Macroeconomic Risk
   : The semiconductor industry is highly cyclical; an economic recession may lead to a decline in end demand and a cut in capital expenditures.

4. Technology Iteration Risk
   : Semiconductor technology is evolving rapidly; if the Company fails to keep up with technological trends, it may lose its competitive advantage.

5. Exchange Rate Risk
   : As a European company, BESI reports in euros, but a significant portion of its revenue comes from the Asian market. Exchange rate fluctuations may affect its profitability.

: It is recommended to include BESI as one of the core holdings in the semiconductor equipment sector, with an allocation ratio controlled within 3-5% of the investment portfolio.

: Given the share price’s range-bound pattern, it is recommended to build positions in batches near the support level (around €139) to achieve a better risk-reward ratio.

: The recommended holding period is 12-18 months to fully benefit from the 2026 AI chip capacity expansion cycle and the growth of the Company’s hybrid bonding business.

: If the share price effectively breaks below the €130 support level, it is recommended to reduce positions in response.

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Company	Ticker	P/E	2025 Expected Growth Rate	Investment Theme	Rating
BE Semiconductor	BESI.AS	80.64x	12%	AI Packaging Equipment	Overweight
ASMPT	0522.HK	18.5x	8%	Semiconductor Packaging Equipment	Hold
Lam Research	LRCX.US	22.3x	15%	Wafer Fabrication Equipment	Buy
Applied Materials	AMAT.US	25.6x	12%	Wafer Fabrication Equipment	Buy
Teradyne	TER.US	28.4x	10%	Testing Equipment	Hold

From a valuation perspective, BESI’s P/E ratio is significantly higher than its peers, reflecting a premium for market expectations of high growth in the Company’s AI packaging business. Lam Research and Applied Materials have more reasonable valuations and benefit from the overall expansion of the frontend equipment market.

Allocation Ratio	Target	Rationale
30%	Lam Research (LRCX)	Leader in wafer fabrication equipment, benefits from AI logic chip expansion
25%	Applied Materials (AMAT)	Full-category equipment platform, benefits from advanced process investment
20%	BE Semiconductor (BESI)	High-beta target in AI packaging equipment, technologically leading
15%	Teradyne (TER)	Leader in testing equipment, benefits from increasing chip complexity
10%	Cash	Opportunity to add positions

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BE Semiconductor Industries is in a favorable position within the AI-driven semiconductor super cycle. The Company’s 43% order growth has strong sustainability, supported by the following factors: sustained strong demand for AI chip packaging, obvious leading advantages in hybrid bonding technology, and rapid expansion of the advanced packaging market. SEMI predicts that the semiconductor equipment market will achieve double-digit growth for three consecutive years from 2025 to 2027, providing a favorable industry environment for BESI.

From a valuation perspective, the current 80x P/E ratio has fully priced in market expectations. However, considering the Company’s technological barriers in AI packaging equipment, excellent profitability, and positive analyst sentiment, we believe BESI still offers medium-to-long-term allocation value. Investors may consider building positions in batches near the support level and holding for 12-18 months to fully benefit from the industry growth cycle.

It should be noted that the semiconductor industry is highly cyclical, and order growth may be volatile. In addition, the current valuation is at a historical high; if growth expectations are not met, the share price may face adjustment risks. It is recommended that investors make prudent decisions based on their own risk preferences and investment horizons.

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[1] BE Semiconductor Industries N.V. Q3 FY2025 Earnings Call Transcript. Yahoo Finance. (https://finance.yahoo.com/quote/BESI.AS/earnings/BESI.AS-Q3-2025-earnings_call-339118.html)
[2] Global Semiconductor Equipment Sales Projected to Reach a Record of $156 Billion in 2027 - SEMI Reports. SEMI. (https://www.semi.org/en/semi-press-release/global-semiconductor-equipment-sales-projected-to-reach-a-record-of-156-billion-dollars-in-2027-semi-reports)
[3] BE Semiconductor Industries NV (BESI) Stock Forecast & Price Target. Investing.com. (https://www.investing.com/equities/be-semicond-consensus-estimates)
[4] Hybrid Bonding Market. MarketsandMarkets. (https://www.marketsandmarkets.com/Market-Reports/hybrid-bonding-market-2641237.html)
[5] 2026 Advanced Packaging Outlook Report. TechInsights. (https://www.techinsights.com/outlook-reports-2026/advanced-packaging-outlook-report)
[6] What’s Ahead in 2026 for the Semiconductor Industry. Sourceability. (https://sourceability.com/post/whats-ahead-in-2026-for-the-semiconductor-industry)
[7] Jinling AI - BESI.AS Company Overview and Technical Analysis Data
[8] BE Semiconductor Industries N.V. Announces Q3-25 Results. Globe Newswire. (https://www.globenewswire.com/news-release/2025/10/23/3171740/0/en/BE-Semiconductor-Industries-N-V-Announces-Q3-25-Results.html)
[9] Advanced Semiconductor Packaging Market Analysis. Precedence Research. (https://www.precedenceresearch.com/insightimg/advanced-semiconductor-packaging-market-size.webp)
[10] BE Semiconductor: Guidance Disappoints; Long-Term Outlook Strong. Morningstar. (https://global.morningstar.com/en-gb/stocks/be-semiconductor-guidance-disappoints-long-term-outlook-strong)

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Report Generation Date: January 12, 2026
Product Name: Jinling AI