Besi slumps after UBS cuts to 'sell' on hybrid bonding adoption risks

Taiwan Semiconductor Manufacturing

07/10/2026 09:28

** BE Semiconductor Industries BESI.AS shares fall around 6% after UBS downgraded the Dutch chip-equipment maker to "sell" from "buy" and slashed its PT by 57% to €159
** UBS says expectations for demand for chip-packaging technique hybrid bonding (HB), central to Besi's investment case, "are not stacking up"
** UBS sees slower adoption of HB in high-bandwidth memory as AI accelerator customers are prioritising capacity expansion over performance improvements
** UBS estimates HB will account for 10% of tool demand in 2028, versus around 50% implied by consensus expectations
** It estimates Besi's 2027-28 HB revenue to be 50%-60% below consensus, while demand from co-packaged optics, AI accelerators and PC processors is unlikely to bridge the gap
** UBS says the existing installed capacity at TSMC 2330.TW and Intel INTC.O can already support "meaningful volumes," limiting upside without greater-than-expected adoption
** Besi shares extend Tuesday's losses, when it closed 5.4% lower following a rating downgrade from BofA Global Research on similar concerns

(Reporting by Nathan Vifflin in Gdansk)
((nathan.vifflin@thomsonreuters.com))