ASML’s chip packaging move threatens Besi shares, Bank of America says
Bank of America cut BE Semiconductor Industries to neutral and nearly halved its price target, saying the share price does not reflect the threat of ASML entering hybrid bonding, the market Besi depends on for growth. Besi has also been approached by two American rivals, one of which has owned 9% of it since last year.
Bank of America has cut BE Semiconductor Industries to neutral and nearly halved its price target, because another Dutch company might enter its market. Besi makes the machines that bond chip surfaces directly to each other. ASML has said in public that it is looking at the same technology.
The threat is “not reflected in the stock and could remain an overhang” until ASML’s plans are clearer, analysts led by Didier Scemama wrote, as Bloomberg reported. Besi fell as much as 6.4% on Tuesday. Neither company responded immediately to requests for...
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