Feb 22 Reuters Dutch chipmaking equipment supplier BE Semiconductor Industries beat its fourthquarter targets on Thursday, boosted by demand for its hybrid bonding technology and AIenabled computing applications from chipmakers expanding their capacity.

Semiconductor firms have been ramping up production capacity to meet global demand for highend chips that power modern technology from cars to computers and smartphones.

Orders and yearend backlog for hybrid bonding a form of chip packaging required for AI applications nearly doubled from last year, BESI said, adding that around a half of fourthquarter orders were for its most advanced hybrid bonding systems.

The assembly equipment maker reported a gross profit margin of 65.1 for the fourth quarter of 2023, on revenue of 159.6 million euros 172.9 million, up 29.4 compared to the prior three months.

That exceeded the company39;s guidance for a gross margin of between 62 and 64 and quarteronquarter revenue growth of 15 to 25.

For the first quarter of 2024, the Amsterdambased group expects its revenue to drop between 5 and 15 from the previous quarter, but sees a higher gross margin of 64 to 66, helped by its advanced packaging products.

The slope of the recovery this year is uncertain given restrained demand for mainstream applications and weakness in automotive enduser markets currently, CEO Richard Blickman said in a statement.

Blickman said industry analysts expect the market to rebound in 20242026 driven by a…