Be Semiconductor Industries N.v. · EURONEXT:BESI
Be Semiconductor Industries — Investor Day (June 2024)
59 slides from Be Semiconductor Industries's investor day presentation, Jun 6, 2024
Slide 1: Investor Day Presentation
INVESTOR DAY PRESENTATION June 6, 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements about management's future expectations, plans and prospects of our business that constitute forward looking statements, which are found in various places throughout the presentation, including, but not limited to, statements relating to exp
Slide 3: Agenda
Agenda I. Strategic Overview Richard Blickman II. Market Trends Chris Scanlan III. Wafer Level Assembly Peter Wiedner IV. Mainstream Die Attach Christoph Scheiring V. Q&A Besi Team June 6, 2024 3
Slide 4: I. Strategic Overview
I. STRATEGIC OVERVIEW Richard Blickman CEO June 6, 2024 4
Slide 5: CEO Summary
CEO Summary AI Drives New Era of Advanced Packaging • Use of Generative AI accelerating everywhere • Assembly one of major gating items to realize AI promise and extend Moore’s Law • In very early stages. New device architectures/applications still evolving • ~35-40% of Besi’s orders currently from
Slide 6: Advanced Packaging Revenue Forecast to Grow Rapidly
Advanced Packaging Revenue Forecast to Grow Rapidly 2.5D/3D Fastest Growing Segment 90.0 Market Revenue CAGR 78.6 80.0 Advanced Packaging 10.0% 72.9 2.5D/3D 19.7% 70.0 64.4 Besi Portfolio Well Positioned by 60.0 56.9 Node Size and Accuracy 51.9 $ billions 50.0 46.8 40.3 44.3 • 70% of Besi equipment
Slide 7: CEO Summary - Continued
CEO Summary - Continued Mainstream Assembly Market Slow to Recover Post Pandemic • 2+ years industry downturn • Continued weakness in smartphone, automotive and consumer applications • Despite increased utilization rates generally • Expected H2-24 improvement Strong Performance in Downturn • Revenue
Slide 8: Besi's Step Function Growth Through Cycles
Besi’s Step Function Growth Through Cycles € millions Revenue Gross Margin Gross Margin 800 65.2% 70% 700 60% 58.0% 600 51.1% 749 50% 500 516 576 593 39.5% 40% 424 400 34.1% 379 30% 300 4 year 302 averages 351 20% 200 164 191 10% 100 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 9: Semi Cap Equipment: Limited Recovery Expected in 2024
Semi Cap Equipment: Limited Recovery Expected in 2024. Pockets of Growth in AI and Memory 180.0 TOP IDM & FOUNDRY CAPEX SPENDERS IDM & Foundry Capex ($B) (Capital expenditures by company, $B, ranked by 2024 Forecast) 160.0 20.5 CAGR 23.9 22.6 2020 2021 2022 2023 2024F 140.0 13.5 27.3 Samsung 28.1 38
Slide 10: IC Unit Volume in Downturn Since Q3-22
IC Unit Volume in Downturn Since Q3-22 Inventory Levels Declining but Still Elevated Worldwide IC Annual Growth Rate Unit & Value IC Inventories (Jan 2017 – Mar 2024) (Q1 2016 – Q2 2024) June 6, 2024 10
Slide 11: Significant New Fab Investments Planned Globally Aided by State Funding
Significant New Fab Investments Planned Globally Aided by State Funding Key Front End Fab Projects Initiated Cost ($B) Status Packaging Fab Projects Initiated Cost ($B) Status TSMC 3nm - Tainan, TW 2021 60 In progress TSMC CoWoS & SoIC - Chiayi, Taiwan 2024 15 In progress TSMC – Arizona, USA 2021 65
Slide 12: Assembly Equipment Market Recovering Slowly
Assembly Equipment Market Recovering Slowly. Growth Anticipated to Accelerate in 2025/2026 8.0 80% Market Size YoY Growth Rate 7.4 68.5% 2024 growth revised downwards reflecting 7.0 6.6 6.1 60% slow mainstream recovery • 2024 forecast expects 9.3% increase 6.0 5.6 • Down from original forecast of 31
Slide 13: Besi Addressable Market Share Increasing
Besi Addressable Market Share Increasing Particularly in Key Die Attach Markets 2019 2020 2021 2022 2023 ∆ ‘23/’22 ∆ ’23/’19 Assembly Market ($MM) 3,197 3,916 6,635 5,578 4,139 -25.8% +29.4% Besi Market Share 10.1% 10.5% 11.7% 11.4% 12.6% +1.2pts +2.5pts Addressable Market ($MM) 1,257 1,439 2,484 2,
Slide 14: Leader in Addressable Market, Die Attach Market and Advanced Die Placement
Leader in Addressable Market, Die Attach Market and Advanced Die Placement Die Attach Advanced (78% of Revenue) Die Placement** Other 2023 Addressable Market* Besi 33% $947 43% $333 Other Million Million 57% Besi 67% Besi 35% $1.5 Billion Packaging & Plating (22% of Revenue) Other 65% Besi 22% $526
Slide 15: Growth Expected to Favor Besi's Product Portfolio
Growth Expected to Favor Besi’s Product Portfolio, Particularly Die Attach CAGR (2023-2026) Die Attach 29.2% 8,000 7,436 Packaging & Plating* 21.8% 7,000 Other Assembly 18.5% 6,061 2,044 Total 21.6% 6,000 1,586 4,522 951 5,000 $ millions 4,139 1,088 772 4,000 947 566 3,000 526 4,441 3,703 2,000 2,66
Slide 16: Increasing R&D Investment to Capture Next Gen AI Opportunities
Increasing R&D Investment to Capture Next Gen AI Opportunities 80 20.0% Gross R&D* % of Revenue 70 60 63.9 15.0% +66% 50 52.1 € millions 10.8% 11.0% 40 10.0% 38.4 30 7.0% 20 5.0% 10 0 0.0% 2019 2021 2023 * Gross R&D spending excludes impact from capitalization/amortization of R&D costs . June 6, 202
Slide 17: Strong Liquidity Position Maintained to Finance Future Growth
Strong Liquidity Position Maintained to Finance Future Growth 800 Cash and Deposits Net Cash 700 672.2 671.7 598.7 600 • Liquidity position increasing post record 2023 capital allocation 500 447.1 • Attractive funding to help finance growth: 413.5 • Convertible debt: € millions 400 • Per April 25, 2
Slide 18: Attractive Capital Allocation Policy Continues
Attractive Capital Allocation Policy Continues 500 Dividends 435.5 Share Repurchases 416.3 400 146.8 213.4 300 • € 2.0 Billion Distributions Since 2011 • ~30% of Cumulative Revenue • ~€ 196 million distributed in 2024 € millions 196.4 through May 31 200 179.5 24.9 • € 34.5 million shares repurchased
Slide 19: Business Model
Business Model Business Model Revenue € 1 billion+++ Addressable Market Share 40%+ Gross Margin 62-66% Operating Margin 35-50% Headcount Split 75% Asia/25% Europe/NA Scope 1 and 2 Emissions Net Zero GHG by 2030 Global Energy 100% from renewable Needs sources June 6, 2024 19
Slide 20: II. Market Trends
II. MARKET TRENDS Chris Scanlan SVP Technology June 6, 2024 20
Slide 21: Semiconductor Sales Expected to Reach $1 Trillion by 2030
Semiconductor Sales Expected to Reach $1 Trillion by 2030 1,200 1,000 Annual Semiconductor Sales ($B) Quantum Computing 800 Tesla Model 3 1B Users AI Agents iPhone 600 AR / VR Generative AI 400 Vehicle Electrification 200 Social Media & Streaming Smartphone Data Source: TechInsights 0 2000 2005 2010
Slide 22: AI Driving Growth in Besi's Principal End User Markets
AI Driving Growth in Besi’s Principal End User Markets Mobile Internet (30%) Computing (24%) Automotive (18%) Industrial/Other (11%) Generated by ImageFX Generated by ImageFX Lidar On Device AI Generative AI Autonomous Driving Automation AR/VR Headsets Datacenter Vehicle Electrification Smart Grid C
Slide 23: AI Chip Market Revenue for Advanced Logic and Memory
Particularly for Advanced Logic and Memory Applications Requiring 2.5D, 3D and chiplet packaging architectures using hybrid bonding, TCB and advanced flip-chip interconnects Data Center AI Devices AI Chip Market Revenue 2023 - 2033 in $B CPU GPU / Accelerator HBM 350 300 250 Auuual Revenue ($B) 200
Slide 24: Slowing of Moore's Law Drives Adoption of Chiplet Architectures
Slowing of Moore’s Law Drives Adoption of Chiplet Architectures and New Assembly Solutions Problem Solution • Moore’s Law slowing as data volumes grow • Split SoC into multiple, smaller chiplets exponentially and commercial applications expand • Optimize scale per function • Cost per transistor incr
Slide 25: Chiplet Usage Increasing Rapidly Due to Favorable Economics
Chiplet Usage Increasing Rapidly Due to Favorable Economics for Advanced Applications Wafer Foundry Addressable Market Shares 300 30% 26% 250 25% 25% 70 200 20% 55 20% USD billions 37 150 15% 15% Marvell Data Center Switch Amazon Data Center CPU 24 17 chiplets 7 active chiplets 1 11 100 197 10% Favo
Slide 26: Chiplet Usage Also Drives Higher Capital Intensity
Chiplet Usage Also Drives Higher Capital Intensity Single Chip Design Multi Chip Module Multi Chiplet System Monolithic: Integrated SoC Multiple Dies: node optimized Individual IPs: node optimized 1 Step More die attach steps Dozens 10µm Higher accuracy 100nm Source: Intel June 6, 2024 26
Slide 27: AI Chiplet Packages Use a Variety of 2.5D/3D Assembly Processes
AI Chiplet Packages Use a Variety of 2.5D/3D Assembly Processes TCB Chip-to-Wafer Hybrid Bonding Flip-chip C2W HBM Die Stacking Die to Interposer 3D IC Chiplet Stacking HBM Die Stacking Die to Interposer ≤ 16 memory die 10 to 36 µm pitch ≤ 9 µm pitch ≥ 16 memory die > 36 µm pitch Mass reflow HBM HBM
Slide 28: Hybrid Bonding is Technology of Choice for 3D Chiplet Stacking
Hybrid Bonding is Technology of Choice for High Performance 3D Chiplet Stacking Highest performance interconnect to create 3D ICs in front-end wafer fabrication process TCB C2W used for lower density, less performance critical applications, such as CoW interposer assembly Hybrid Bonding TCB Micro-bu
Slide 29: MI300 Illustrates Hybrid Bonding Potential
MI300 Illustrates Hybrid Bonding Potential AMD announced 2 versions of the MI300 GPU accelerator device in Dec 2023 • Utilizes hybrid bonding to attach GPU and CPU chips (and spacer die) to a logic base chip • Assembled base tiles then attached to a TSMC CoWoS-S package using TCB C2W • Fastest produ
Slide 30: AMD Using Hybrid Bonding for Multiple Product Families
AMD Using Hybrid Bonding for Multiple Product Families In High Volume Production Past Two Years EPYC™ 9004 Series Processors Ryzen™ 9 7900X3D with 3D V-Cache™ MI300 AI GPU • Gaming processor • Data Center CPU • GPU + CPU for super computing • Hybrid bonding of two Ryzen CCD • Hybrid bonding of 12 Ry
Slide 31: Intel Clearwater Forest CPU is Next Major Hybrid Bonding Launch
Intel Clearwater Forest CPU is Next Major Hybrid Bonding Launch • First Intel CPU product using hybrid bonding to stack CPU core chiplets atop base tiles with SRAM and I/O functions • Attaches up to 12 CPU chiplets to functional base tile • 3D stacking “improves the latency between compute and memor
Slide 32: High Performance Processor Evolution
High Performance Processor Evolution SoC Split Die Chiplets and Hybrid Bonding Opteron Server CPUs 1st Gen EPYC CPU (2017) 2nd Gen EPYC (2019) 3rd Gen EPYC (2022) with Hybrid Bonding 3rd Gen Xeon CPU Sapphire Rapids CPU (2023) Clearwater Forest CPU w/ Hybrid Bonding (2025) H100 GPU B100 GPU (2024) 1
Slide 33: Hybrid Bonding and TCB on Roadmaps of All HBM Suppliers
Hybrid Bonding and TCB on Roadmaps of All HBM Suppliers • JEDEC increased the maximum thickness of HBM4 recently to permit stacking of up to 16 die using TCB • Some hybrid bonding adoption expected in HBM4 for higher performance applications in preparation for HBM 5 • HBM5 with up to 20 die stack ca
Slide 34: Hybrid Bonding Significantly Improves HBM Performance
Hybrid Bonding Significantly Improves HBM Performance Hybrid bonding outperforms TCB/micro-bump for HBM stacking: Future direct stacking of DRAM onto logic using • 20% lower stack thermal resistance 1 hybrid bonding for highest performance • 20% improvement in signal integrity 2 • 17% reduction in d
Slide 35: GPU and AI Accelerator Devices Driving 2.5D Package Growth
GPU and AI Accelerator Devices Driving 2.5D Package Growth High-End Packaging (MM Units): 2.5D Interposers 250 CoWoS = (Chip-on-Wafer-on-Substrate) Annual 2.5D Interposer Volume (MM units) Chip-on-Wafer (CoW) 200 • Flip-chip attach of logic and HBM to the interposer wafer 50% CAGR 2023 - 2028 150 On
Slide 36: AI Servers Driving Growth of Optical Transceivers
AI Servers Driving Growth of Optical Transceivers Adoption of Hybrid Bonding for Photonic Chiplets Anticipated Pluggable Optical Transceivers Co-Packaged Optics • Transceiver market growth increasingly 2200 EVO Advanced • TSMC’s COUPE photonic engine technology Hybrid Bonder driven by AI server clus
Slide 37: Edge AI Computing Drives Next Generation Consumer Applications
Edge AI Computing Drives Next Generation Consumer Applications Edge AI Use Cases Mobile Phones Text Generation Audio and Video Creation XR Laptops Image and Video Enhancement Glasses Edge AI Code Generation Medical Diagnostics IoT Auto Auto Self-Driving Environmental Monitoring June 6, 2024 37
Slide 38: AI Enabled Smartphones Expected to Drive Smartphone Upgrade Cycle
AI Enabled Smartphones Expected to Drive Smartphone Upgrade Cycle • Next-gen AI smartphones use processors capable of running on-device GenAI models more quickly and efficiently • Expected transition of APU/NPU from SoC to Chiplet architectures June 6, 2024 38
Slide 39: Favorable Long-Term Automotive Semiconductor Outlook
Favorable Long-Term Automotive Semiconductor Outlook Will Aid Each of Besi’s Product Groups 110 Global Vehicle Production Avg. Semiconductor Content Per Vehicle* Automotive Semicondcutor TAM* (MM units) ($/unit) 160 ($Billions) 100 1400 140 101 1,395 140 1200 120 1.1X 1000 2X 100 90 2.2X 91 x 800 60
Slide 40: III. Wafer Level Assembly
III. Wafer Level Assembly Peter Wiedner Senior VP Sub-Micron Die Attach June 6, 2024 40
Slide 41: AI Adoption Driving HBM & HPC
AI Adoption Driving HBM & HPC High Bandwith Memory High Power Computing Hybrid and TCB complementary Hybrid dominant interconnect technologies – Both needed for next technology for HPC gen HPC HBM HBM Besi XPU XPU Interposer Bridge Bridge Package Substrate June 6, 2024 41
Slide 42: Advanced Logic Driving New Fine Pitch Interconnect Technologies
Advanced Logic Driving New Fine Pitch Interconnect Technologies • High end semiconductors always follow path to smallest bump pitch • Hybrid enables bump pitches <10µm Interconnect Facilitates 3D chip designs to extend for computing Moore’s law and HBM • TC fluxless bridges the gap between existing
Slide 43: Hybrid Bonding Product Roadmap
Hybrid Bonding Product Roadmap Generation 1: Generation 2: Generation 3: 200nm 100nm 50nm New Standard: 100nm Bonder Working on 50nm Bonder Industry Standard for … Hybrid Bonding 10% Productivity increase 30% Productivity increase Bump Pitch 10 µm 9 µm 8 µm 7 µm 6 µm 5 µm 4 µm 3 µm 2 µm 1 µm 2023 20
Slide 44: Thermo Compression Product Roadmap
Thermo Compression Product Roadmap 9800 TC Next 9800 TC Fluxless 1µm 0,5µm High Accuracy without UPH impact Lowest Cost of Ownership … Integrated Hydroxyl Reduction Bump Pitch 40 µm 35 µm 30 µm 25 µm 20 µm 15 µm 10 µm 2023 2024 2025 2026 … … … … … June 6, 2024 44
Slide 45: HBM Evolution: Increasing Layers, Capacity and Bandwidth
HBM Evolution: Ever Increasing Number of Layers, Capacity and Bandwidth in Each Successive Generation Cap: x 64 BW: x16 June 6, 2024 ICEP 2024 45
Slide 46: HBM – Technology Challenges
HBM – Technology Challenges How To Increase Capacity? How To Increase Bandwith? Solution: Solution: • Increase stack height • More parallel connections • Higher clock rate Limitation: • Device height Limitation: • Heat dissipation • Pin count • Heat dissipation Change to max. 775µm allows Hybrid Bon
Slide 47: HBM Assembly Roadmap by Leading Producer
HBM Assembly Roadmap by Leading Producer Micron Samsung Hynix NCF TC NCF TC MR-MUF HBM 3,3E Non Conductive Film Non Conductive Film Mass reflow 2024 Thermo Compression Thermo Compression Mold Underfill Fluxless TC / Hybrid Fluxless TC / Hybrid Adv. MR-MUF / Hybrid HBM 4,4E Working on both technologi
Slide 48: HBM 4e/5 Production Expected to Accelerate in 2026
HBM 4e/5 Production Expected to Accelerate in 2026 June 6, 2024 48
Slide 49: Besi's TCB and Hybrid Bonding Systems Address Future HBM Needs
Besi’s TCB and Hybrid Bonding Systems Address Needs of Future HBM Interconnect Technologies 9800 TC next for ≤ 16 Stack HBM 8800 Chameo ultra plus AC for ≥ 16 Stack HBM June 6, 2024 49
Slide 50: Hybrid Bonding Market Potential – Logic and Memory Cases Confirmed
Hybrid Bonding Market Potential – Logic and Memory Cases Confirmed Total # of installed back-end machines for hybrid Estimated 900 – 2,000 systems by 2030 bonding Application High case 2000 Changes vs. Prior Forecast Processors 1800 • Market potential for each case increased 6% adopting 1600 Hybrid
Slide 51: IV. Mainstream Die Attach
IV. MAINSTREAM DIE ATTACH Christoph Scheiring Senior VP Die Attach June 6, 2024 51
Slide 52: Besi Die Attach Summary
Besi Die Attach Summary Revenue ~80% of BESI Market Share ~43%* Die Attach ~70% Advanced Die Attach Market Die Attach ~29% CAGR (2023-2026)* AI, CoWoS, Photonics, Drivers Mobile, Auto • Source: TechInsights June 2024 June 6, 2024 52
Slide 53: Industry Leading Die Attach Equipment Portfolio
Industry Leading Die Attach Equipment Portfolio Die Bonding Multi-Module Attach • 2100 sD advanced i • 2200 evo advanced • 2100 hS i • 2200 evo plus • 2100 hS ix • 2200 evo • 2100 hS • 2200 evo hS • 2200 evo hf Multi- Mainstream module Epoxy Flip-Chip Soft Solder FlipChip SoftSolder • 8800 CHAMEO Tn
Slide 54: High End Smartphone Market Recovering
High End Smartphone Market Recovering Future Growth Driven by AI Phones and New Camera Features Mobile BESI SOLUTIONS 2200 evo advanced 2100 hSi New Applications 8800 FC Quantum • Variable aperture smartphone cameras • Fully Automated and Integrated Assembly 10x • Next level lens system • Next gener
Slide 55: Industry Leading Photonics Platform in Rapidly Growing Market
Industry Leading Photonics Platform in Rapidly Growing Market Comput Computer Data Center Trends er BESI SOLUTIONS • Electrical interconnects replaced by Optical interconnects • Future: optical chip-to-chip connection CPO Photonic – ROSA, TOSA, Laser, VCSEL assembly • Ultimate process control & flex
Slide 56: Besi Portfolio Positioned for High Speed 2.5D CoW
Besi Portfolio Well Positioned to Take Advantage of Increased Investment in High Speed 2.5D CoW Computer Typical 2.5D assembly BESI SOLUTIONS CoWoS – Unique High speed Integrated Logic and Memory Attach • Introduced Q4 2023 • New High speed flip chip attach with dip fluxing • Large dies up to 40x40m
Slide 57: Besi's 2200 Evo Is Tool of Reference for Large Interposer
Besi’s 2200 Evo Is Tool of Reference for Large Interposer CoWoS Flip Chip Attach Computer BESI SOLUTIONS CoWoS – Interposer Attach • Large die flip chip attach with dip fluxing • Large die up to 72x72mm • Inline or stand alone 2200 Evo advanced NEW • Interposer size increasing to 120mm • Adding TC &
Slide 58: Besi's Mainstream Die Attach Systems Well Positioned In Highest Growth Segments
Besi’s Mainstream Die Attach Systems Well Positioned In Highest Growth Segments Besi's Mainstream Die Attach Addressable Market* ($MM) 1600 1400 IC - Die Bonder Besi’s mainstream addressable market expected to approximately double to $1.6B by 1200 2026 IC - Flip Chip 1000 Advanced Die Placement* rep
Slide 59: Q&A
Besi comm June 6, 2024 59
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