BE Semiconductor Industries NV's shares increased following the company's announcement that fourth-quarter orders doubled, driven by heightened demand from data centers and photonics clients. The Dutch chip toolmaker, based in Duiven, reported preliminary orders of approximately €250 million ($292 million) for the fourth quarter, a 105% increase compared to the previous year, according to a statement released Monday on Bloomberg Terminal. This figure surpasses the average analyst estimate of €198 million, as compiled by Bloomberg.

The surge in orders reflects a growing need for advanced packaging solutions in the semiconductor industry. BE Semiconductor Industries, known as Besi, specializes in hybrid bonding, a crucial technology for creating more powerful and efficient chips. Hybrid bonding allows for the direct stacking of silicon wafers, reducing interconnect length and improving overall chip performance. This technology is particularly important for data centers, which require high-performance computing capabilities, and photonics applications, which utilize light for data transmission.

The company's expertise in advanced packaging positions it favorably within the semiconductor supply chain. As chip manufacturing becomes increasingly complex, advanced packaging is playing a more critical role in enabling next-generation devices. Besi's tools facilitate the precise alignment and bonding of different chip components, ensuring optimal performance and reliability.

Analysts believe that Besi's strong fourth-quarter performance signals continued growth in the advanced packaging market. The demand for smaller, faster, and more energy-efficient chips is expected to drive further investment in hybrid bonding and other advanced packaging technologies. Besi is well-positioned to capitalize on this trend, with a portfolio of equipment designed to meet the evolving needs of its customers.

The company is expected to release its full fourth-quarter results in the coming weeks. Investors will be closely watching for further details on the company's outlook for 2026 and its plans for continued innovation in the advanced packaging space.