ACM Research, Inc.

What they do

ACM Research develops and builds wafer processing equipment used in yield-critical steps of chip fabrication, including single-wafer cleaning, Tahoe and semi-critical cleaning, electro-chemical plating (ECP), furnaces, PECVD, and Track tools. Tools are used for foundry, logic and memory chips including DRAM and 3D NAND, as well as power and compound semiconductors. Substantially all tools are built to order at its Lingang manufacturing facilities in Shanghai, with additional development and subsystem production in Korea. Selling prices generally range from $0.5 million to more than $5 million per tool.

Revenue drivers

• Single wafer, Tahoe and semi-critical cleaning — Largest product category at $626.0 million, or 69.5% of 2025 revenue, up from $578.9 million (74.0%) in 2024 and $403.9 million (72.4%) in 2023.
• ECP, furnace and other technologies — Second category at $199.6 million, or 22.1% of 2025 revenue, up from $151.1 million (19.3%) in 2024 and $103.4 million (18.5%) in 2023; ECP shipments reached a cumulative 2,000 chambers as of Q2 2026.
• Advanced packaging (excluding ECP), services and spares — Smallest but growing category at $75.8 million, or 8.4% of 2025 revenue, compared with $52.2 million (6.7%) in 2024 and $50.5 million (9.1%) in 2023.
• Geography — A substantial majority of equipment sales are to customers located in Asia; operations include sales, marketing and service personnel in North America, Western Europe and Southeast Asia.

Recent performance

Second quarter 2026 revenue was $292.9 million, up from $215.4 million in Q2 2025, with gross margin of 46.0% versus 48.5%. GAAP net income attributable to ACM Research was $89.0 million and diluted EPS was $1.23, versus $29.8 million and $0.44 a year earlier. First-half 2026 revenue was $524.2 million versus $387.7 million, and first-half GAAP diluted EPS was $1.49 versus $0.74. Total Q2 2026 shipments were $281.5 million, up 36.4% year over year; first-half shipments were $522.2 million versus $363.1 million. The company ended the quarter with $969.2 million in cash and equivalents and $1.0 billion in net cash.

Strategy

Management describes 2026 as a "Big Year" for new products, with customer evaluations and ramps across SPM Cleaning, Track, PECVD and horizontal panel-level plating for advanced packaging. ACM is expanding engagement with global customers and progressing at its Oregon facility while continuing to serve its Asian customer base. In September 2025, ACM Shanghai completed a private offering of 38,601,326 ordinary shares at RMB 116.11 per share, raising net proceeds of approximately RMB 4.4 billion (about $623.0 million) for R&D, capital expenditures and working capital, reducing ACM Research's ownership in ACM Shanghai to 74.6%. ACM Shanghai also paid a cash dividend of approximately RMB 264.9 million (about $36.8 million) in September 2025. Management states a long-term revenue target of $4 billion.

Risks

• Export control and entity listing exposure — ACM Shanghai and ACM Korea were added to the BIS Entity List effective December 2, 2024, which could restrict their access to U.S.-origin technology and components.
• China concentration — A substantial majority of revenue comes from customers in Asia, and Gartner estimates China WFE will decline 9.9% to $35.4 billion in 2026, which could pressure demand.
• First tool acceptance risk — Shipments to new customers or first-time tool types depend on customer acceptance, and customers have significant or total discretion whether to accept or purchase evaluated tools, which may prevent revenue recognition.
• Accounting firm inspection and delisting risk — The independent registered public accounting firm is based in mainland China; if the PCAOB cannot inspect it and ACM is placed on the SEC's Conclusive List for two consecutive years, trading in its securities could be prohibited and the securities delisted.

Outlook

ACM raised fiscal year 2026 revenue guidance to $1.125 billion to $1.175 billion, from a prior range of $1.08 billion to $1.175 billion, implying 25% to 30% growth. Management cites increased order activity and good visibility for the remainder of 2026, while guidance accounts for international trade policy, customer spending scenarios, supply chain constraints and first-tool acceptance timing. The company reiterated a long-term revenue target of $4 billion.