AMSTERDAM, June 10, 2024 – Dutch semiconductor equipment supplier Besi has reported a sharp increase in orders as the artificial intelligence (AI) revolution fuels unprecedented demand for advanced chip packaging technologies, particularly hybrid bonding.

The company, a leader in die-attach systems used in semiconductor manufacturing, announced that its order backlog has grown significantly in recent months, driven by the need for high-performance computing (HPC), AI accelerators, and next-generation memory chips.

AI Boom Sparks Chip Packaging Revolution

As AI models grow larger and more complex, semiconductor manufacturers are turning to hybrid bonding—a cutting-edge packaging technique that enables faster, denser, and more energy-efficient chip designs. Unlike traditional methods, hybrid bonding allows for direct copper-to-copper connections between chips, reducing power consumption and boosting data transfer speeds.

"AI is reshaping the semiconductor industry, and hybrid bonding is becoming a critical enabler," said Richard W. Blickman, Besi’s CEO. "Our customers—including leading logic and memory manufacturers—are ramping up investments in advanced packaging to meet the explosive demand for AI chips."

Besi’s Market Leadership Pays Off

Besi, which holds a dominant position in thermo-compression bonding (TCB) and hybrid bonding equipment, has seen orders surge by over 40% year-on-year, according to industry analysts. The company’s technology is crucial for producing NVIDIA’s AI GPUs, TSMC’s 3D-stacked SoICs, and Micron’s high-bandwidth memory (HBM) chips.

"With AI workloads requiring more interconnects and higher bandwidth, hybrid bonding is no longer optional—it’s a necessity," said Mark Li, semiconductor analyst at Bernstein Research. "Besi is one of the few companies with the expertise to supply this equipment at scale."

Industry-Wide Shift to Advanced Packaging

The semiconductor industry is rapidly moving away from traditional flip-chip bonding toward hybrid bonding, especially for AI, data center, and automotive chips. TSMC, Intel, and Samsung have all announced major expansions in advanced packaging capacity, with hybrid bonding playing a central role.

Besi’s strong order growth suggests that the AI-driven packaging boom is just beginning. The company is expected to outperform market expectations in its upcoming earnings report, with analysts predicting revenue growth of 30%+ in 2024.

What’s Next for Besi?

With the AI race accelerating, Besi is well-positioned to capitalize on the $10B+ advanced packaging equipment market. The company is reportedly expanding production capacity and investing in next-generation bonding technologies to maintain its lead.

"Semiconductor packaging is now a key battleground in the AI era," Blickman added. "Besi’s technology will be at the heart of the next wave of innovation."

For investors and industry watchers, Besi’s surge in orders is yet another sign that AI’s hunger for cutting-edge chips is reshaping the entire semiconductor supply chain.