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Besi Raises Long-Term Financial Targets on Growing AI Chip Demand

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BE Semiconductor Industries (Besi) has raised its long-term revenue and operating margin targets ahead of its investor day, citing strong demand from AI chipmakers adopting its advanced hybrid bonding technology. The Dutch company specializes in the world’s most precise hybrid bonding tools, a key technology for stacking multiple chips directly on top of each other to boost performance.

At the event, Besi’s Senior Vice President Technology Chris Scanlan highlighted that major AI chip designers Nvidia and Broadcom are looking to utilize Taiwan Semiconductor Manufacturing Co’s (TSMC) hybrid bonding process, which could increase demand for Besi’s equipment. Additionally, Intel and AMD are expanding their use of hybrid bonding technology.

Besi now projects long-term revenues between €1.5 billion and €1.9 billion ($1.73 billion to $2.19 billion), up from a previous forecast of €1 billion, and expects operating margins of 40% to 55%, an increase from 35% to 50%. Shares rose 8.4% during the trading day, outperforming the Netherlands’ AEX index.

As traditional performance gains from shrinking chip features approach physical limits, the industry is shifting towards advanced packaging methods like hybrid bonding to create faster, more powerful chips. Limits on reticule exposure in ASML’s lithography machines have also pushed chipmakers to combine multiple chips by stitching or stacking. For example, TSMC recently demonstrated a large package containing over 16 chips stitched together.

While Besi and its investors are optimistic about the company’s position as a key supplier to cutting-edge chipmakers, some analysts expressed caution. Degroof Petercam noted that Besi’s raised targets come despite the company not yet reaching its earlier goals. So far this year, Besi shares have declined by 3.2%.

Synopsys Resumes Limited Services in China Amid U.S. Export Restrictions, Core Tool Sales Still Blocked

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Synopsys has partially resumed some services in China after suspending operations earlier this month in response to new U.S. export curbs, according to a source with direct knowledge of the situation. The California-based semiconductor design software provider had halted sales and access to its SolvNet customer support portal to comply with broad U.S. restrictions aimed at limiting technology exports to China.

The source revealed that while Synopsys has restarted sales of non-core hardware and intellectual property (IP) to serve some existing Chinese clients, sales of critical Electronic Design Automation (EDA) tools remain suspended. These essential EDA tools are necessary to fully utilize the company’s IP and hardware products, such as the HAPS and ZeBu hardware-assisted verification systems, which are primarily used for accelerating chip verification.

SolvNet has reopened with limited access, restricting some software-related documents, further impacting Chinese customers’ ability to use Synopsys’ full range of services.

Synopsys, along with Cadence and Siemens EDA, dominates the global EDA market with over 70% market share in China, according to the Chinese state news agency Xinhua. The ongoing restrictions on EDA tool sales pose a significant challenge to Chinese semiconductor design companies, potentially hindering the country’s chipmaking industry.

Following the U.S. export controls, Synopsys suspended its annual and quarterly revenue forecasts, reflecting uncertainty about future sales prospects in China.

The company did not immediately respond to requests for comment.

Investors Brace for China-Taiwan Conflict Risks, But See No Safe Hedge

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Foreign investors are increasingly forced to factor in the once-unthinkable: the possibility of China invading Taiwan, a scenario made more plausible amid rising U.S.-China tensions under President Donald Trump and a new wave of global trade nationalism. Yet, despite heightened geopolitical anxiety, investors see little to no viable strategy for hedging against a full-scale conflict over the democratically governed island.

“You can’t settle any trades, the currency might disappear altogether… you either carry on like it’s business as usual, or stay away,” said Mukesh Dave, CIO of Aravali Asset Management.

War or Status Quo: A Binary Outlook

Investors now view the China-Taiwan standoff as a binary risk:

  • War, which would likely obliterate Taiwan’s status as a stable investment market.

  • Peace, maintaining the status quo under continued diplomatic ambiguity.

Rising Odds and Market Reaction

  • The Polymarket platform now pegs the odds of an invasion at 12%, up from near zero earlier in the year.

  • Taiwan stock outflows totalled nearly $11 billion in 2024, fueled in part by U.S. tariffs.

  • Taiwan’s benchmark index (.TWII) is down 6% year-to-date.

Even Goldman Sachs’ Cross-Strait Risk Index, which tracks media references to tensions, has been steadily climbing since Trump’s election win in late 2024.

“If aggression occurs, the investment decision becomes binary: stay exposed and absorb extreme volatility, or exit swiftly to preserve capital,” said Steve Lawrence, CIO of Balfour Capital Group.

TSMC at the Heart of the Dilemma

The central pillar of Taiwan’s market remains Taiwan Semiconductor Manufacturing Co (TSMC):

  • Valued as the crown jewel of the global chip industry

  • Supplies giants like Apple and Nvidia

  • Has been both a market driver and a geopolitical flashpoint, especially as Trump’s tariff policies increasingly target advanced tech

“TSMC is so big that the expectation is the U.S. will defend Taiwan — and defend it strongly,” said Dave.

However, Trump’s inconsistent tariff maneuvers, including temporary delays for negotiation leverage, have spooked investors and underscored Taiwan’s exposure to external political will.

Diverging Views on Risk

While global investors appear increasingly concerned about cross-strait instability, some local voices remain sceptical:

“We shouldn’t interpret this from a geopolitical risk perspective. The key issue is the tariffs,” said Li Fang-kuo, chairman of Uni-President’s securities advisory unit in Taiwan.

Others, like Rich Nuzum, global strategist at Mercer, recommend broad diversification and crisis stress-testing as the only realistic tools for institutional clients.

“There is no hedge for war,” Dave noted plainly. “But there is stress-testing for fear.”

With Taiwanese President Lai Ching-te pledging peace and Beijing accusing him of separatism, tensions remain unresolved. Investors face a stark choice: stay exposed to Taiwan’s tech-driven growth, or exit amid escalating uncertainty.