(Oct 27): Applied Materials Inc boosted its stake in fellow chip-equipment maker BE Semiconductor Industries NV and said it plans to work more closely with the European company, which is becoming a more important part of the artificial intelligence (AI) computing supply chain.

Applied’s stake will increase to about 20% of outstanding shares, the US company said in a statement on Monday. The company first disclosed a 9% stake in BE Semiconductor, known as Besi, last year. 

Besi shares rose as much as 10% in Amsterdam trading on Tuesday, the biggest intraday gain since March. The stock has gained 19% this year, giving it a market value of about €12.9 billion (RM58.97 billion). Applied closed 2.7% higher at US$387.59 (RM1,582) in New York on Monday.

Companies that make equipment for AI and the data centres that run the technology are seeing surging demand. Besi specialises in hybrid bonding, a technology used in chip assembly that boosts AI performance. Last week, the company rebuffed analysts’ concerns that larger chip-equipment maker ASML Holding NV was emerging as a competitor. 

Applied’s investment follows a six-year collaboration between the two companies. Besi also recently joined Applied’s new chip-equipment research facility known as the EPIC Center.

Though Applied described its investment as “long term”, the company said a bigger takeover is not in the works. “Applied currently has no intention to increase its investment in Besi beyond approximately 20%, and Applied does not intend to seek board representation at Besi,” the company said. 

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