Besi's Hybrid Bonding Inflection: AI Memory, Power Management, and a Hyperscaler Stir the Pot
Q2'26 order surge with record backlog, hybrid bonding adoption expanding to 21 customers, and new AI power management orders signal a broadening AI capex cycle
BESI.AS · Earnings Call · 2026-07-23
A Blowout Quarter, Driven by AI's Longest-Expected Wave
Besi reported a stunning Q2'26: revenue of EUR 249.9 million (up 68.7% YoY), orders of EUR 292.9 million (up 128.8% YoY), and net income of EUR 89 million (up 177.3% YoY). The company's net margin jumped to 35.6% from 21.6% a year ago, while the order book for the last twelve months hit a record EUR 987.6 million. The driver is unmistakably AI infrastructure spending, which now accounts for approximately 60% of system orders in H1, up from around 50% in H1'25. As CEO Richard Blickman put it in prepared remarks: “Customers indicate that we are in a multiyear AI CapEx cycle, further supported by increased demand for agentic AI applications.” — Richard Blickman, CEO · 2026-07-23Hybrid Bonding Adoption: From Logic to Memory, and Beyond
The most compelling story is the broadening of hybrid bonding technology. Customer count rose from 15 at year-end to 21 at quarter end, with use cases expanding across logic, memory, co-packaged optics, and consumer applications. The long-awaited HBM memory adoption appears to be near an inflection point. Addressing an analyst's question, Blickman said: “We are in a very interesting, exciting moment in time for the adoption of hybrid bonding for HBM applications, whether that is HBM4E or even HBM3.” — Richard Blickman, CEO · 2026-07-23 He later added that all three major memory makers are either evaluating or preparing to adopt hybrid bonding, with one "driving the bus the fastest." This aligns with prior calls—in April, he said the road map for HBM adoption "stands" and is "supported by orders by publications in the public domain." “That road map stands, and it's being supported ever more by orders by publications in the public domain.” — Richard Blickman, CEO · 2026-04-24 And in February, he noted Samsung's dual-tracking approach: “Samsung has publicly said that they'll be dual tracking hybrid bonding and TCB 4E in HBM...” — Richard Blickman, CEO · 2026-02-19New Vectors: AI Power Management and a Hyperscaler's Wearables
Beyond memory, Besi flagged AI power management as a new and growing segment, with orders from multiple customers in Q2. This is a natural extension of the data center compute module market and could be a significant future revenue stream. Even more intriguing, the company received an order from a new hyperscaler customer for hybrid bonding, which management hinted is likely for wearables—glasses specifically. Said Blickman: “It can also be for other applications. But then as you rightfully said, it's—logic is expanding... the next step in wearables is those glasses.” — Richard Blickman, CEO · 2026-07-23 The hyperscaler order, along with two repeat customers (one for co-packaged optics, one for logic), underscores the pace of adoption and the expanding addressable market.Seasonality Reversal and CoWoS/CoPoS Strategy
Besi's guidance for Q3 revenue up 10% to 15% sequentially is historically unusual—the company typically sees a seasonal decline. Management attributes this to the shift in demand from consumer electronics to data center and AI applications, which have a different cadence. They also see continued momentum in CoWoS and CoPoS penetration, including new investments in panel-level packaging (310x310). The shift is structural: "That is one. The second one is the pattern as discussed in expanding hybrid technology capacity in the world... that may well change the order pattern." “Usually, we have in a strong year, a higher revenue in Q3 than in Q2... But as we indicated, we have continued order momentum, but with a different mix.” — Richard Blickman, CEO · 2026-07-23Risk: Overcapacity on the Horizon?
The enthusiasm is tempered by classic cyclical fears. When asked about overcapacity, Blickman acknowledged the risk:He emphasized that Besi can adjust its supply chain and cost structure, but the cycle is far from done. With AI spending still expanding and agentic AI driving CPU demand, the company sees multiple years of growth ahead. The key metrics—record orders, expanding hybrid bonding customer base, and new product cycles—all point to a company at the heart of the AI packaging boom.Every customer is preparing for a next step in miniaturization of chip design... So if you look at previous cycles in our industry, typically an up-cycle last 6 quarters, maybe 8 and then you are bound to have an overcapacity.