ACM Research, Inc. Q1 FY2025 earnings call

Management Statement and Operational Highlights

• Recognition and Market Share: ACM appeared in Top 20 Global Semiconductor Equipment companies for 2024. Estimated 25% market share in China for wafer cleaning and >9% global. Panel level packaging tool received 3D InCites Technology Enablement Award.
• Investments and Facilities: Investing in Oregon facility for demo, R&D, and production. Lingang Production and R&D Center nearly completed, with each production building supporting up to $1.5B annual production capacity.
• Product Growth: Strong growth path with new products like Tahoe SPM, furnace, and upcoming Track and PECVD. Committed to high growth model with $3B long-term revenue target ($1.5B from China, $1.5B from global markets).

Segment Performance

• Single wafer cleaning, Tahoe and semi critical cleaning tools: Revenue grew 18% and represented 75% of total revenue. Driven by strong demand for SAPS and Ultra C V backside cleaning tool, and qualified high temperature SPM tool with a leading logic customer in China.
• ECP, furnace and other technology: Revenue grew 7% and represented 16% of total revenue. Strong momentum in ECP tool for advanced packaging and furnace products gaining traction, with furnace product line expected to accelerate revenue in 2025.
• Advanced Packaging (excluding ECP): Revenue was down 10.5% and represented 9% of revenue. Progress with new Track and PECVD platforms, with initial revenue expected in 2025 and more in 2026+.

Guidance

• Revenue Outlook: Maintaining 2025 revenue outlook in the range of $850 million to $950 million, implying 15% year-over-year growth at the midpoint.
• Capital Expenditures: Expect to spend about $70 million in capital expenditures for 2025.

Risks

• Trade Environment: Shifting global trade environment with new tariffs and policies creating a complex and less predictable operating environment.

Question and Answer

Q: On shipment figures and full-year outlook A: David Wang stated they are still expecting 2025 shipment to be over last year's but growth rate lower than last year, still positive. Mark McKechnie clarified shipment growth expected in 2025 but growth rate of shipments not necessarily higher than revenue growth Q: Impact of tariffs on ACM Shanghai A: David Wang said impact is minimized by sourcing parts locally and from third countries. Mark McKechnie added it's different for customers Q: 2026 growth thoughts A: David Wang mentioned it's early to predict, but focused on gaining market share through innovation and new products like the ultra-high temperature NEO process and panel products Q: Domestic competition and consolidation in China A: David Wang stated ACM has strong technology leadership, no fear of local peers copying due to IP, and expects consolidation in the market but is focused on organic growth through own technology development