BUZZ - UBS downgrades Besi to 'Sell' due to risks from hybrid bonding adoption; share price drops accordingly
路透社2026/10/07 10:16Key update on share price in the first point; update on the performance of European peer stocks in the eighth point. October 7th - BE Semiconductor Industries (BESI.AS) shares fell by about 9.5% after UBS downgraded the Dutch chip equipment manufacturer’s rating from “Buy” to “Sell” and slashed its target price by 57% to 159 euros. UBS stated that expectations for demand for chip packaging technology “hybrid bonding”—which is at the core of Besi’s investment thesis—“have not materialized as expected.” According to UBS, adoption of hybrid bonding technology in high-bandwidth memory will slow because AI accelerator clients currently prioritize capacity expansion over performance improvements. UBS expects that by 2028, hybrid bonding technology will account for 10% of equipment demand, whereas market consensus suggests this proportion is around 50%. The bank projects that Besi’s hybrid bonding (HB) revenue in 2027-28 will be 50-60% lower than market expectations, and that demand from co-packaged optics, AI accelerators, and PC processors is unlikely to fill that gap. UBS stated that existing capacity at TSMC (2330.TW) and Intel (INTC.O) is already sufficient to support “substantial shipment volumes” and unless adoption rates exceed expectations, the upside is limited. Besi’s share price extended Tuesday’s downturn, after Bank of America Global Research also downgraded the stock based on similar concerns, with shares closing down 5.4% on Tuesday (link). In other European semiconductor stocks: ASML (ASML.AS) declined 2.3%, ASM International (ASMI.AS) dropped 5.3%, Infineon (IFXGn.DE) fell 5.8%, X-Fab (XFAB.PA) lost 5.8%, Soitec (SOIT.PA) was down 4.1%, STMicroelectronics (STMPA.PA) dropped 3.8%, Aixtron (AIXGn.DE) fell 2.7%, and ams-OSRAM (AMS2.VI) fell 3.6%. (Note: For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. Because automated translations may be incorrect or may not include the intended context, Reuters does not guarantee the accuracy of translated texts and provides them solely for reader convenience. Reuters assumes no responsibility for any damage or loss caused by using automated translation features.)
The first key point updates stock prices, the eighth key point updates the European peer stock price trends.
October 7 - ** Shares of BE Semiconductor Industries (BESI.AS) fell by about 9.5%, after UBS downgraded the Dutch chip equipment manufacturer from “Buy” to “Sell” and slashed its target price by 57% to 159 euros.
** UBS stated the expected demand for “hybrid bonding” chip packaging technology — the core of Besi’s investment thesis — “has not materialized as anticipated.”
** According to UBS, since AI accelerator clients are currently prioritizing capacity expansion over performance improvement, the adoption rate of hybrid bonding technology in high-bandwidth memory will slow down.
** UBS predicts that by 2028, hybrid bonding technology will account for 10% of equipment demand, while market consensus expects about 50%.
** The bank expects Besi’s hybrid bonding (HB) revenue in 2027-28 to be 50%-60% below market consensus, and demand from co-packaged optics, AI accelerators, and PC processors is unlikely to fill the gap.
** UBS noted that TSMC 2330.TW and Intel INTC.O already have sufficient capacity to support “significant shipment volumes.” If adoption doesn’t exceed expectations, the upside potential is limited.
** Besi’s share price continued to fall on Tuesday after BofA Global Research cut its rating based on similar concerns; the stock closed down 5.4% on Tuesday (link)
** Elsewhere in the European semiconductor sector, ASML ASML.AS dropped 2.3%, ASM International ASMI.AS fell 5.3%, Infineon IFXGn.DE declined 5.8%, X-Fab XFAB.PA lost 5.8%, Soitec SOIT.PA dropped 4.1%, STMicroelectronics STMPA.PA was down 3.8%, Aixtron AIXGn.DE fell 2.7%, and ams-OSRAM AMS2.VI down 3.6%
(For non-native English speakers, Reuters provides its reporting in automated translations into several other languages. As automated translations may contain errors or lack necessary context, Reuters does not guarantee the accuracy of the automated translation text and provides it solely as a convenience for readers. Reuters accepts no liability for any damages or losses arising from the use of the automated translation feature.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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