The Dutch semiconductor equipment supplier BE Semiconductor Industries (Besi) announced on Thursday that it expects a sequential increase in sales for the fourth quarter due to rising orders driven by demand related to artificial intelligence (AI) data center applications.
Besi manufactures the world’s most precise hybrid bonding equipment, a crucial technology that leading chip manufacturers such as
The company revealed that, following the completion of a 100 million euro share buyback program in October, it will initiate a new buyback program worth 60 million euros (approximately 70 million USD).
Besi expects its revenue for the fourth quarter to grow between 15% and 25%. Previously, the company reported a 15.3% year-over-year decline in revenue for the third quarter, dropping to 132.7 million euros.
Besi's CEO Richard Blickman noted in a statement that the decline in third-quarter revenue was primarily influenced by two factors: ongoing weakness in the mainstream packaging market, particularly in mobile device and automotive applications, and reduced revenue from its hybrid bonding business.
However, Besi also indicated that due to increased orders from Asian subcontractors in data center and photonics applications, its order intake still rose by 15.1% in the third quarter, reaching 174.7 million euros.
Blickman stated that the company's optimistic outlook for the fourth quarter reflects a growing demand from leading companies in the AI sector.
Currently, chip manufacturers and materials suppliers are facing some pressure due to a slower-than-expected recovery in customer inventory levels, and the demand for AI chips only partially offsets weakness in the automotive, personal computer (PC), and memory chip sectors, resulting in a challenging overall industry environment.
Earlier this month, TSMC reported record profits that exceeded market expectations, and based on optimistic forecasts for spending in the AI sector, TSMC raised its revenue outlook for the year.
Besi also projects that its gross margin for the fourth quarter will remain between 61% and 63%, compared to a gross margin of 62.2% in the third quarter.