Besi shares slide on report of ASML developing competing hybrid bonding product

Shares of Dutch chip equipment firm BE Semiconductor Industries (Besi) dropped about 3% on Friday following news that rival ASML is developing a competing tool for hybrid bonding, the advanced chip-stacking process crucial to Besi's growth. Besi's stock fell 2.66% to €159.05, while ASML Holding rose 1.11% to €1,480.40. The report from research firm SemiAnalysis revealed that ASML filed 27 patent families related to hybrid bonding between December 2022 and November 2024, with the actual number likely higher due to recent filings still under wraps.

Besi has been a leader in die-to-wafer bonding, holding exclusive rights to tools in volume production. However, according to SemiAnalysis, logic components, where Besi generates most of its hybrid bonding revenue, are expected to adopt ASML's tool first, potentially dealing a blow to Besi's prospects. Additionally, Besi's hybrid bonding business faces headwinds as Korean competitors close the gap and adoption of die-to-wafer bonding in hybrid bonding is projected to delay until 2029 or later.

ASML's innovative design, which has each die move on its holder through various inspection and measurement stations before reaching a bonding station, sets it apart from conventional machines. Nonetheless, ASML must overcome hurdles related to alignment accuracy, particle control, and feed-forward metrology for its tool to gain a foothold. SemiAnalysis anticipates ASML will price its tools at a premium compared to competitors.