Applied Materials Boosts Stake in Besi to 20 Percent
The investment aims to accelerate hybrid bonding development for more energy-efficient AI computing architectures.
Updated on Oct. 26, 2026 in Semiconductors
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Applied Materials has entered into an accelerated share purchase agreement to increase its stake in BE Semiconductor Industries (Besi) to 20 percent of outstanding shares. The investment follows an initial purchase made by the company in April 2025.
Why it matters
Applied Materials is deepening its financial ties to Besi to accelerate development in hybrid bonding and interconnect architectures. These technologies are viewed as essential components for improving energy efficiency in next-generation AI computing hardware.
The investment targets a 20 percent ownership stake, expanding on an existing collaboration that began in 2020. This alignment focuses specifically on hybrid bonding—a method of connecting chips without bumps—to optimize data transfer and power consumption in AI processors.
The players
Applied Materials
A Santa Clara-based semiconductor equipment manufacturer focused on materials engineering, deposition, and etching tools for high-volume chip fabrication.
BE Semiconductor Industries
An Amsterdam-based supplier of assembly and packaging equipment for the semiconductor industry, specializing in high-precision die attach and bonding technology.
The details
Hybrid bonding allows for the direct connection of silicon wafers at the copper level, increasing the density of interconnections while reducing energy loss compared to traditional solder bumps. As an Innovation Partner in the Applied Materials EPIC Center, Besi contributes specialized assembly and packaging expertise to these architectures. Applied Materials stated it will not seek board representation at Besi, maintaining the current structure of the partnership.
Timeline
2020: The two companies initiated a strategic collaboration.
April 2025: Applied Materials made its initial investment in Besi.
October 26, 2026: Applied Materials announced the increased investment agreement.
The Tech Race
This investment reinforces the joint research goals of the Applied Materials EPIC Center, where the two companies currently co-develop advanced packaging solutions. The move signals a shift from purely collaborative research to a consolidated effort to dominate the backend-of-line integration required for AI chips.
The acquisition has no immediate effect on semiconductor pricing or device availability for the public. The transaction is currently subject to regulatory waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act, with no specific completion date finalized.
The takeaway
The move underscores that the future of energy-efficient AI performance now relies as much on high-precision physical packaging as it does on transistor density. Watch for the completion of the Hart-Scott-Rodino regulatory period to confirm the full 20 percent ownership transfer.
Further reading
For broader trends in chip fabrication and packaging, visit our Semiconductors section.
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