ACM Research (ACMR) UBS Global Technology and AI Conference summary

Impact of export controls and supply chain localization

• Recent export controls added many Chinese equipment firms to the entity list, creating new supply chain challenges, but no specific wrongdoing was cited.

• The company has localized much of its supply chain, reducing U.S. dependency, and expects to manage through new restrictions.

• Domestic Chinese chipmakers face strong incentives to localize equipment sourcing, driven by regulations and proximity to fabs.

• The push for domestic sourcing is expected to continue, with the company aiming to win business on product merit rather than policy.

Market outlook and growth strategy

• China WFE spending is expected to decline in 2025, partly due to pre-purchasing in 2024, but the company anticipates continued growth from market share gains.

• International business remains a small revenue contributor but is targeted for expansion.

• A $3 billion long-term revenue target is split evenly between China and international markets, based on market share goals and a $30 billion China WFE market.

• Expansion efforts include new R&D and demo facilities in Oregon and increased headcount in Korea.

Product innovation and competitive positioning

• Cleaning tools represent over 70% of revenue, with a broad product offering covering 90% of cleaning steps.

• The Tahoe tool breakthrough reduces sulfuric acid consumption by 75% at advanced nodes, offering ESG benefits and competitive performance.

• Furnace tools are in evaluation, with meaningful revenue expected in 2025.

• Plating (ECP) tools, especially for advanced packaging, are a growing focus, with three new panel-level products recently announced.

• The company faces strong competition from larger players in each product area but aims to differentiate through innovation.