On February 20, Dutch chipmaking parts supplier BE Semiconductor Industries (Besi) unexpectedly projected a sales decline for the first quarter due to weakness in its conventional markets, despite receiving positive orders related to artificial intelligence (AI).
Following the announcement, Besi's shares dropped 10%, ranking at the bottom of the STOXX 600 index in Europe by 0805 GMT. This decline could represent the worst daily dip since October if sustained throughout the day.
The chip assembly equipment manufacturer anticipates a potential up to 10% decrease in quarterly sales from the 153.4 million euros ($159.9 million) reported in the last quarter of 2024.
Market analysts had estimated a revenue increase to 170.2 million euros for the first quarter, according to LSEG's IBES data. However, Degroof Petercam analyst Michael Roeg noted that Besi's first-quarter guidance fell significantly below market expectations, with fourth-quarter results missing the mark, and order bookings substantially undershooting previous estimates.
CEO Richard Blickman conveyed in a statement that despite challenges in mainstream automotive, smartphone, industrial, and Chinese markets, there is a sense of cautious optimism for 2025, backed by strong momentum in advanced die placement solutions for AI applications.
Investors are pinning their hopes on increasing orders for Besi's hybrid bonding solutions and the company's pioneering position in meeting the escalating demand for AI-driven technology. Nevertheless, Besi's traditional sectors, supplying chip production tools for cars and smartphones, continue to experience a prolonged downturn, with manufacturers delaying orders to manage excess manufacturing capacity.
Besi anticipates a revival in mainstream assembly markets to commence in the latter half of 2025, contingent on market trends and the status of global trade regulations. The current exchange rate stands at $1 equal to 0.9591 euros.