BE Semiconductor Industries, the Dutch company that makes the machines used to assemble advanced chips, just told investors it expects to get a lot bigger. During its Investor Day on June 18, Besi raised its long-term revenue target to a range of €1.7 billion to €2.2 billion, up from a previous forecast of €1.5 billion to €1.9 billion.

For a company that reported €591 million in total revenue for 2025, that upper target represents roughly a 3.7x increase. The catalyst is straightforward: the AI infrastructure buildout is consuming advanced chip packaging at a pace that even optimists didn’t fully anticipate.

Hybrid bonding is the star of the show

The revenue upgrade is largely driven by surging demand for Besi’s hybrid bonding equipment, a technology that’s become essential for connecting chiplets in high-performance AI processors.

By 2026, hybrid bonding revenue alone is projected to reach approximately €476 million. That means a single product line could account for the majority of where the company’s revenue stood just a year prior.

Up to one-third of Besi’s total business is expected to come from this segment by 2026.

CEO Richard Blickman attributed the upgraded outlook to higher demand for 2.5D AI-related datacenter and photonics applications. The company is also seeing new growth vectors in logic, memory, and co-packaged optics.

Besi didn’t just raise its revenue ceiling. The company also bumped its operating margin target to 45% to 55%, up from a previous range of 40% to 55%.

Why this matters beyond semiconductors

Besi sits at a critical chokepoint in the AI supply chain. The company’s die-attach and hybrid-bonding machines are used in the final stages of semiconductor assembly, the step where individual chip components get connected into finished packages.

Nvidia and Broadcom, two of the most important AI chip designers on the planet, are implementing TSMC manufacturing processes that rely on hybrid bonding. When those companies scale production, Besi’s order books fill up.

Headquartered in Duiven, Netherlands, Besi has carved out a specialized position in advanced packaging.

What this means for investors

Besi’s 45% to 55% operating margin target puts it in rarefied air for a manufacturer of physical products.

The risk calculus is worth understanding. Semiconductor equipment demand is inherently cyclical. Besi’s concentration in hybrid bonding also means the company is making a directional bet that this specific technology becomes the industry standard for advanced packaging.

The stock trades on Euronext Amsterdam under the ticker BESI, with ADRs available in the US as BESIY.