Applied Materials to Boost BE Semiconductor Stake to 20%, Deepening AI Chip Pact

Shares of BE Semiconductor Industries (Besi) surged after U.S. chip equipment giant Applied Materials announced a plan to more than double its stake in the company to approximately 20%. The move is intended to deepen a strategic partnership between the two firms focused on advanced packaging technologies crucial for artificial intelligence (AI) chips.

The Strategic Investment

Applied Materials said it entered into an accelerated share purchase agreement to raise its holding in the Dutch semiconductor firm from its current 9%. The company characterized the investment as long-term, stating it has no current intention of increasing its stake beyond the 20% threshold or seeking representation on Besi's board.

Completion of the share delivery is contingent upon the expiration or termination of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Applied Materials first invested in Besi in April 2025.

Deepening an AI-Focused Partnership

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The increased investment underscores the growing importance of advanced chip packaging, particularly as the semiconductor industry races to meet the performance demands of AI workloads. The collaboration, which began in 2020, centers on technologies like hybrid bonding, a key enabler for next-generation chips.

“Applied Materials is adding to its investment in Besi as hybrid bonding technology and next-generation interconnect architectures become increasingly critical enablers of energy-efficient AI compute performance,” said Dr. Prabu Raja, President of the Semiconductor Products Group at Applied Materials. The partnership recently expanded with Besi joining Applied's EPIC Center as an Innovation Partner.

Market Reaction

Investors reacted positively to the announcement, sending shares of BE Semiconductor up by more than 8% in Tuesday's trading. The move by Applied Materials, a bellwether in the semiconductor equipment industry, signals a significant vote of confidence in Besi's technology and its strategic role in the evolving AI hardware supply chain.