(Reuters) -Dutch chipmaking parts supplier BE Semiconductor Industries (Besi) expects its revenue to fall in the first quarter of 2025 compared to the last quarter, as weakness in its traditional markets offsets positive AI related orders.
The chip assembly equipment maker expects its first quarter sales to fall by up to 10% from the 153.4 million euros ($159.9 million) it recorded for the final quarter of 2024.
Analysts were expecting revenue to grow to 170.2 million euros for the first quarter, according to LSEG’s IBES data.
“We enter the year 2025 with cautious optimism based on strong momentum in our advanced die placement solutions for AI applications partially offset by ongoing weakness in mainstream automotive, smart phone, industrial and Chinese end-user markets,” CEO Richard Blickman said in a statement.
Investors are banking on growing orders for Besi’s hybrid bonding solutions and the company’s first-mover advantage amid a surge in demand for AI-enabling technology.
But Besi’s traditional markets, tools destined for the production of chips used in cars and smartphones, are recovering more slowly than expected, as manufacturers push back orders to manage their high inventory levels.
The company said it now expects recovery in the mainstream assembly market to start in the second half of 2025.
($1 = 0.9591 euros)
(Reporting by Nathan Vifflin and Leo Marchandon in Gdansk; Editing by Milla Nissi)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibility for its content.