BESI (BE Semiconductor Industries) is positioned as a leader in hybrid bonding equipment for next-generation 3D chip stacking. **What hybrid bonding is:** Direct copper-to-copper and dielectric-to-dielectric bonding without solder or microbumps. Enables much denser interconnects than current [[CoWoS and 2.5D Packaging]] approaches. Critical for future [[HBM and Package Integration]] generations (HBM4 and beyond). **Why BESI matters:** - Applied Materials took a 9% stake and became largest shareholder, signaling strategic importance - Positioned to capture high-density 3D stacking wave (2026-2028 timeframe per industry reports) - Technology leadership in an emerging category **The catch:** This is not a value play. - EV/EBITDA typically 50-60x+ range - Priced for future growth and technology leadership - Forward PE in mid-50s to 60s **When it works:** If you have high conviction that hybrid bonding becomes the standard for advanced packaging and BESI maintains share. You're paying for optionality and future margin expansion, not current cash flows. **When it doesn't fit:** [[Concentrated Packaging Portfolio]] focused on value-first cash flows. BESI is a quality growth asset, not a mispriced durable business with downside protection. **Possible value entry:** Deep correction where market declares "hybrid bonding delayed" but technology thesis remains intact. That's rare and hard to time. **Compare to [[Kulicke & Soffa - KLIC]]:** KLIC has balance sheet support and trades at trough valuations during weak cycles. BESI rarely gets "cheap" by traditional metrics. Better suited for a growth/quality bucket, not core value position. Links: [[Advanced Packaging MOC]], [[Advanced Packaging Equipment]], [[Equipment Tools Cyclicality]] --- #semiconductors #deeptech