Updated version 1 - After Applied Materials announced it would double its stake, shares of Dutch chip equipment manufacturer Besi soared.

Updated stock price, analyst comments, and background information starting from paragraph 2

Reuters Amsterdam, October 27 - Shares of Dutch semiconductor packaging equipment maker BE Semiconductor Industries (Besi) BESI.AS surged sharply at the opening of the Amsterdam stock market on Tuesday after its larger American counterpart, Applied Materials (AMAT.O), announced it would increase its stake in Besi (link) to about 20%.

At 08:31 GMT, Besi's share price was up 8.8%, at 159.20 euros.

This move by Applied Materials aims to strengthen its strategic position in Besi, following the two companies' announcement on October 1 to expand their long-term cooperation in Besi’s hybrid bonding technology—which is seen as a key enabling technology for next-generation AI chips—into other related areas.

Applied Materials stated in a release after the U.S. stock market closed on Monday that it had signed an "accelerated buy agreement" for the shares. The deal is subject to U.S. antitrust review before closing, but the company says it “currently has no intention of increasing its investment in Besi to over approximately 20%” and will not seek a seat on Besi's board of directors.

Under Dutch competition law, once a company acquires more than 30% of a competitor's shares, it must launch a full takeover bid.

"We believe AMAT (Applied Materials) is very keen to acquire Besi, but we also believe Chinese regulators are likely to block the deal," Degroof Petercam analyst Michael Roeg wrote in a report.

Both companies have significant sales in China, which gives Chinese antitrust regulators the authority to review any merger deal between them. In 2025, the Chinese market will account for about 30% of Applied Materials' revenue, and Besi has a manufacturing base in Leshan, China. In 2021, Applied Materials terminated its plan to acquire Japan's Kokusai Electric (link) after failing to obtain timely approval from Chinese regulators.

Applied first acquired a 9% stake in Besi in April 2025. This increase comes after Besi’s stock price plummeted—the share halved after hitting a high of 317 euros in June, amid a broader selloff in semiconductor stocks.

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