Core Points - ACM Research, Inc. will participate in the 17th Annual CEO Investor Summit 2025 on October 7 in Phoenix, Arizona [1] - The presentation materials will be available on the company's website [2] - The CEO Investor Summit is held annually during the SEMICON West industry trade show, with this year's event taking place for the first time in downtown Phoenix [3] Event Details - The event will be held at The Arrogant Butcher restaurant, with an agenda that includes registration, a networking luncheon, CEO summit meeting sessions, and a cocktail reception [3] - The summit will feature 12 management teams from various companies, including ACM Research, Aehr Test Systems, and others [4] - Attendance is by invitation only for accredited investors and research analysts, with a registration deadline of September 26, 2025 [5] Company Overview - ACM Research develops, manufactures, and sells semiconductor process equipment, focusing on various processes such as cleaning, electroplating, and wafer-level packaging [7] - The company aims to provide customized, high-performance, and cost-effective solutions to improve productivity and product yield for semiconductor manufacturers [7]

Core Viewpoint - ACM Research, Inc. has launched the Ultra ECDP tool designed for high-precision electrochemical deplating in wide bandgap compound semiconductor manufacturing, addressing challenges in gold etching and plating [1][3]. Company Overview - ACM Research, Inc. specializes in semiconductor process equipment, including cleaning, electroplating, and packaging tools, aimed at enhancing productivity and yield in semiconductor manufacturing [6]. Product Features - The Ultra ECDP tool supports processes such as Au bump removal, thin film Au etching, and deep-hole Au deplating, featuring integrated pre-wet and cleaning chambers for improved efficiency [2]. - It utilizes advanced multi-anode electrochemical technology to minimize side etching and enhance surface finish and uniformity across features [2]. - The tool is compatible with 6-inch and 8-inch platforms and accommodates various wafer sizes, including 150 mm, 159 mm, and 200 mm, providing flexibility for different manufacturing environments [4]. Market Context - The compound semiconductor market is experiencing growth driven by demand from sectors such as electric vehicles, 5G/6G communication, RF, and AI applications, with gold being a preferred material due to its high conductivity and corrosion resistance [3].

Core Insights - ACM Research, Inc. has launched its first Ultra ECDP Electrochemical Deplating tool aimed at wide bandgap compound semiconductor manufacturing, enhancing gold etching processes [1][3] Company Overview - ACM Research, Inc. specializes in semiconductor process equipment, including cleaning, electroplating, and packaging tools, aimed at improving productivity and yield in semiconductor manufacturing [6] Product Features - The Ultra ECDP tool supports specialized processes such as Au bump removal, thin film Au etching, and deep-hole Au deplating, featuring integrated pre-wet and cleaning chambers [2] - It utilizes advanced multi-anode electrochemical technology to minimize side etching and enhance surface finish and uniformity [2] - The tool is designed to accommodate various substrates like silicon carbide (SiC) and gallium arsenide (GaAs), with a modular design allowing integration of plating and deplating processes [3][4] Market Context - The compound semiconductor market is experiencing growth driven by demand in electric vehicles, 5G/6G communication, RF, and AI applications, with gold being a preferred material due to its high conductivity and corrosion resistance [3]

Core Viewpoint - ACM Research, Inc. has launched its first Ultra Lith KrF track system aimed at enhancing front-end semiconductor manufacturing, which signifies the company's commitment to addressing lithography challenges in mature-node devices [1][3]. Group 1: Product Launch and Features - The Ultra Lith KrF track system expands ACM's lithography product line, offering high-throughput performance, advanced thermal control, and real-time process monitoring [1][3]. - The system features a flexible process module configuration with 12 spin coaters and 12 developers, supported by 54 hot plates for various temperature processing, achieving a throughput greater than 300 wafers per hour [3][2]. - The system incorporates proprietary backside particle removal unit (BPRV) technology to minimize cross-contamination risk and includes an integrated wafer-scale outlier inspection (WSOI) unit for real-time process variation detection [3][2]. Group 2: Market Position and Strategy - The launch reflects ACM's strategy to enhance its presence in front-end process equipment and to cater to the growing demand for mature-node devices, which are believed to represent a significant portion of global semiconductor output [3][2]. - By offering both ArF and KrF track systems, ACM aims to provide seamless fab integration and greater manufacturing flexibility across diverse applications [3][2]. Group 3: Company Overview - ACM Research, Inc. develops, manufactures, and sells semiconductor process equipment, including cleaning, electroplating, and packaging tools, aimed at improving productivity and product yield for semiconductor manufacturers [5].

Core Viewpoint - The initial market reaction to ACM Research's Q2 2025 earnings report was negative, but subsequent analysis revealed strong underlying growth potential, leading to a significant stock recovery and a year-to-date increase of nearly 98% [1][2][3]. Financial Performance - ACM Research reported Q2 2025 revenue of $215.4 million, slightly below Wall Street's estimate of $223.4 million, which initially raised concerns [4]. - The company achieved Non-GAAP earnings per share (EPS) of 54 cents, surpassing analyst estimates of 42 cents by nearly 30% [5]. - Non-GAAP gross margin was reported at 48.7%, exceeding the company's long-term target range of 40% to 45%, indicating strong operational efficiency [5]. Management Guidance - Management reaffirmed full-year 2025 revenue guidance of $850 million to $950 million, suggesting that the quarterly revenue miss was a timing issue rather than a sign of weakening demand [6]. - The long-term revenue target for Mainland China was raised from $1.5 billion to $2.5 billion, reflecting a nearly 70% increase based on an expanded view of the market [7]. Market Dynamics - U.S. export controls on China's tech sector have accelerated China's push for semiconductor independence, creating significant opportunities for local suppliers like ACM Research [8]. - ACM Research's strategic positioning in Shanghai provides a competitive advantage and access to capital expenditures from leading Chinese foundries [9]. Strategic Expansion - The company is developing an R&D and production facility in Oregon, aiming to attract Western clients and leverage support from initiatives like the U.S. CHIPS Act [10]. - This dual focus on strengthening its presence in China while expanding internationally establishes a robust growth pathway for ACM Research [10]. Investment Outlook - The recent stock rally reflects a market reevaluation of ACM Research's strategic position, emphasizing long-term growth opportunities over short-term earnings fluctuations [11]. - ACM Research is positioned as a premier investment choice for those looking to capitalize on the multi-year build-out of China's semiconductor industry [12].

Summary of Semiconductor Industry Conference Call Industry Overview - The conference call focuses on the **semiconductor industry in China**, particularly in the context of the **CHIPS Act** and its implications for capital expenditures (capex) and technology development [1][4][5]. Key Points Capital Expenditures (Capex) - China's semiconductor capex is projected to increase to **US$43 billion to US$46 billion** for the period **2025-2030**, up from previous estimates of **US$40 billion to US$44 billion** [4][16]. - A strong investment of **US$41 billion** was recorded in **2024**, representing a **19% year-over-year increase** [4][16]. - The investment focus is expected to shift towards **memory** and **advanced node technologies**, with local suppliers anticipated to contribute **26%** of wafer fabrication equipment procurement in **2025**, increasing to **36%** by **2030** [4][16]. Demand and Supply Chain Migration - The semiconductor supply chain in China is undergoing significant migration, with expansions in **CIS**, **automotive chips**, and **AI chips** [5]. - Local foundries and OSATs are enhancing their manufacturing technologies, driven by structural technology innovations and better services [5]. Lithography Demand - An estimated **2,261 additional lithography systems** will be required by **2035** to meet the projected chip demand in China, necessitating an investment of approximately **US$110 billion** [6][39]. - The breakdown of required lithography systems includes **212 EUVs**, **843 immersion DUVs**, and **2,564 dry DUV/UV systems** [39]. Market Dynamics - The semiconductor market in China is expected to see a **5% to 1%** growth in capex from **2025 to 2030**, driven primarily by foundries and memory players, which will account for about **80%** of the capex [16][22]. - Chinese semiconductor manufacturers are projected to capture **17%** of the semiconductor demand value in **2024**, increasing to **37%** by **2030** [33]. Equipment Market - The Wafer Fabrication Equipment (WFE) market in China is expected to reach **US$41 billion** by **2026**, with local suppliers increasing their market share from **17%** in **2024** to **36%** by **2027** [28][32]. - The growth in WFE revenues is attributed to the increasing semiconductor spending, with China expected to account for **37% to 38%** of global WFE spending in **2025-2027** [28]. Implications for Global Suppliers - US suppliers are expected to maintain a strong market share in China's WFE spending, despite facing challenges from local manufacturers and export controls [45]. - Japanese SPE manufacturers may see a gradual decline in their market share in China, although they will still benefit from the high capex environment [49]. Additional Insights - The semiconductor industry in China is characterized by a robust local ecosystem supported by ongoing technology development and a large home market [1][4]. - The demand for lithography systems is critical for meeting future chip production needs, highlighting the importance of investment in R&D and local manufacturing capabilities [6][39]. This summary encapsulates the key insights and projections regarding the semiconductor industry in China, emphasizing the growth in capital expenditures, the demand for advanced technologies, and the evolving dynamics of the supply chain.

Core Viewpoint - The A-share market is experiencing a significant surge driven by the AI industry chain, with the ChiNext Index rising by 2.4% and various sectors such as semiconductors and CPO witnessing substantial gains, indicating a technological revolution in the capital market [1][3]. Industry Insights - Over 40% of the 1.7 trillion yuan trading volume is directed towards the AI industry chain, with leading companies like NewEase Technology hitting the 20% limit up due to a 42% increase in capital expenditure from North American cloud giants, with orders extending to 2026 [3]. - The ChiNext AI index has surged by 68% since April, reflecting real industrial breakthroughs rather than speculative hype, as evidenced by companies like SMIC investing nearly 15% of their revenue in R&D and ranking among the top three globally in wet etching equipment shipments [3]. - The Ministry of Industry and Information Technology has recently released the "Artificial Intelligence +" policy, which supports AI chip development and intelligent computing infrastructure, effectively boosting the tech industry [3]. - Inspur Information holds over 45% market share in AI servers, with orders from major players like Tencent and Huawei expected to sustain growth for the next three years [3]. - Rare earth materials are becoming shadow stocks in the tech sector, with companies like Northern Rare Earth hitting the limit up due to the essential role of permanent magnet materials in AI robotics [3]. Investment Directions - For medium to long-term investors, three key areas to focus on include: - Semiconductor equipment, with SMIC's Ultra C series cleaning equipment reducing chemical consumption by 75%, showcasing true domestic replacement capabilities [4]. - AI computing infrastructure, exemplified by the low PUE value of 1.04 for the liquid-cooled data center from Zhongke Shuguang, which is 30% more energy-efficient than traditional facilities [4]. - The robotics supply chain, with significant domestic replacement opportunities for core components like reducers and sensors as Tesla's Optimus prepares for mass production [4]. - The investment in tech stocks is characterized as a marathon rather than a sprint, with historical context provided by the 554% rise in the ChiNext during the 2012 bull market driven by the smartphone and mobile internet revolution [4].

Core Insights - ACM Research, Inc. (NASDAQ: ACMR) has experienced a 24% increase in stock price following significant fluctuations in market sentiment [1] - The stock previously dropped by 22% after the release of Q2 earnings, which showed topline growth below analyst expectations [1] Company Analysis - The recent performance of ACMR highlights the volatility in the market, particularly for mid and small-cap stocks [1] - The company's earnings report indicated challenges in meeting growth expectations, which can impact investor confidence and stock performance [1] Market Trends - The analysis emphasizes the importance of thorough research and understanding of financial statements and market trends to identify undervalued investment opportunities [1]

Group 1: Technology Sector Overview - Information technology is one of the top-performing sectors in 2025, but returns are unevenly distributed across the tech universe [1] - The Magnificent Seven, including major firms like Apple Inc. and Alphabet, have performed in line with the broader market, with the Roundhill Magnificent Seven ETF returning 9.6% compared to 9.3% for the S&P 500 year-to-date [2] Group 2: Indie Semiconductor Inc. - Indie Semiconductor, a specialized semiconductor maker for the automotive industry, has a market cap under $1 billion and reported a non-GAAP gross margin of 49.1% in Q2 2025 [3][4] - The company is preparing to scale production of its 77 GHz radar chipset and has found success with its LXM laser product, which could address a market worth up to $5 billion by 2030 [4] - Five out of six analysts have given indie a Buy rating, with a 12-month stock price forecast of $5.90, indicating a potential upside of 37.85% from the current price of $4.28 [5] Group 3: ACM Research Inc. - ACM Research, which specializes in chipmaking equipment, reported a revenue increase of over 6% year-over-year to over $215 million, driven by sales of its Ultra C WB wet bench tool [7][8] - The company has nearly doubled its long-term revenue forecast for its Chinese business to $2.5 billion, anticipating significant growth in the semiconductor space [8] - ACM shares have risen almost 14% year-to-date, with a consensus price target of $26.33, suggesting further upside potential [9] Group 4: Arteris Inc. - Arteris focuses on on-chip interconnect fabric technology and reported Q2 2025 revenue of $16.5 million, beating expectations despite a GAAP net loss of $9.13 million [10][11] - The company has a market cap under $400 million and is expected to have a significant impact in the AI chip industry, with all three analysts rating its shares as a Buy [12] - Analysts project a 12-month stock price forecast of $15.00 for Arteris, indicating a potential upside of 63.40% from the current price of $9.18 [10]

PART I. FINANCIAL INFORMATION Contains the company's unaudited interim financial statements, management's analysis, and market risk disclosures [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited condensed consolidated balance sheets, statements of income, equity, and cash flows [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Details the company's financial position, showing significant growth in total assets and borrowings Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,645,653 | $1,483,379 | | **Total Assets** | **$2,039,715** | **$1,855,721** | | **Total Current Liabilities** | $671,012 | $641,233 | | **Total Liabilities** | $848,026 | $759,815 | | **Total Equity** | **$1,191,689** | **$1,095,906** | - Key asset increases were seen in Cash and cash equivalents (up **$34.6M**), Account receivables (up **$46.6M**), and Inventories (up **$50.3M**) compared to year-end 2024[20](index=20&type=chunk) - Total borrowings (short-term and long-term) increased from **$182.8M** at year-end 2024 to **$278.1M** as of June 30, 2025[20](index=20&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Outlines revenue, profit, and earnings per share for the second quarter and first half of 2025 versus 2024 Q2 2025 vs Q2 2024 Performance (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $215,372 | $202,480 | | Gross Profit | $104,461 | $96,784 | | Income from Operations | $31,694 | $37,593 | | Net Income Attributable to ACM | $29,760 | $24,210 | Six Months 2025 vs 2024 Performance (in thousands) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | $387,719 | $354,671 | | Gross Profit | $187,011 | $175,905 | | Income from Operations | $57,471 | $62,825 | | Net Income Attributable to ACM | $50,140 | $41,643 | - Diluted EPS for Q2 2025 was **$0.44**, an increase from **$0.35** in Q2 2024; for the six-month period, diluted EPS was **$0.74** in 2025, up from **$0.61** in 2024[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash movements from operating, investing, and financing activities for the first half of 2025 Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(39,619) | $51,942 | | Net cash (used in) provided by investing activities | $(31,295) | $31,889 | | Net cash provided by financing activities | $110,973 | $58,251 | - The **significant use of cash in operating activities** in H1 2025 was primarily driven by increases in inventories (**$52.9M**) and accounts receivable (**$44.5M**), and a decrease in advances from customers (**$24.4M**)[31](index=31&type=chunk) - Financing activities provided **$111.0M** in cash, mainly from proceeds from short-term and long-term borrowings (**$134.6M**) and stock option exercises (**$23.6M**)[32](index=32&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Provides supplementary details on customer concentration, subsidiary structure, and ongoing legal inquiries - For the six months ended June 30, 2025, three customers accounted for **49.9% of total revenue**; as of June 30, 2025, four customers accounted for **49.5% of total accounts receivable**[71](index=71&type=chunk)[72](index=72&type=chunk) - The company's principal operating subsidiary is ACM Research (Shanghai), Inc, in which it holds an **81.1% effective interest** as of June 30, 2025[34](index=34&type=chunk) - In 2025, ACM Korea received inquiries from the **Seoul Customs Office** regarding certain goods shipped to overseas markets; the investigation is ongoing but is not currently expected to have a material effect[133](index=133&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes financial performance and condition, highlighting revenue growth drivers, rising expenses, and liquidity position [Overview](index=38&type=section&id=Overview) Discusses the company's market position, industry forecasts, and a proposed private offering by its Shanghai subsidiary - The company's current product portfolio addresses an estimated **$20 billion** of the 2025 global wafer fab equipment (WFE) market[162](index=162&type=chunk) - Gartner estimates the total worldwide WFE market will increase by 4.7% to **$116.8 billion** in 2025, while the China WFE market is expected to decrease by 17.1% to **$33.5 billion**[163](index=163&type=chunk)[164](index=164&type=chunk) - ACM Shanghai has a proposed private offering to raise up to **RMB 4.5 billion ($642.2 million)**, which would reduce ACM Research's equity interest from 81.1% to approximately **74.6%**[164](index=164&type=chunk)[165](index=165&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Compares revenue by product, gross margin, and operating expenses for Q2 and H1 2025 against the prior year Revenue by Product Category - Q2 Comparison (in thousands) | Product Category | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Single wafer cleaning, Tahoe and semi-critical | $154,961 | $153,221 | 1.1% | | ECP, furnace and other technologies | $48,016 | $38,962 | 23.2% | | Advanced packaging, services & spares | $12,395 | $10,297 | 20.4% | | **Total Revenue** | **$215,372** | **$202,480** | **6.4%** | Revenue by Product Category - H1 Comparison (in thousands) | Product Category | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Single wafer cleaning, Tahoe and semi-critical | $284,530 | $262,691 | 8.3% | | ECP, furnace and other technologies | $75,646 | $64,762 | 16.8% | | Advanced packaging, services & spares | $27,543 | $27,218 | 1.2% | | **Total Revenue** | **$387,719** | **$354,671** | **9.3%** | - Gross margin for Q2 2025 was **48.5%**, a slight increase from 47.8% in Q2 2024; for H1 2025, gross margin was **48.2%**, a decrease from 49.6% in H1 2024[181](index=181&type=chunk)[202](index=202&type=chunk) - Total operating expenses **increased by 22.9% in Q2 2025** and **14.6% in H1 2025** year-over-year, driven by higher R&D and Sales & Marketing costs[182](index=182&type=chunk)[203](index=203&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) Details the company's cash position, sources of liquidity, and changes in cash flow from operations Cash Position (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents and restricted cash | $452,886 | $411,310 | | Short-term time deposits | $31,019 | $17,277 | | Long-term time deposits | $0 | $13,275 | | **Total** | **$483,905** | **$441,862** | - For the first six months of 2025, net cash used in operating activities was **$39.6 million**, a significant shift from **$51.9 million provided** by operations in the same period of 2024[223](index=223&type=chunk) - The company believes existing cash, cash flow from operations, and bank borrowings will be **sufficient to meet anticipated cash needs** for at least the next 12 months[217](index=217&type=chunk) [Quantitative and Qualitative Disclosures About Market Risks](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) Confirms no material changes to the company's market risk exposures or management strategies during H1 2025 - There have been **no material changes** in the first six months of 2025 to the company's market risks or its management of such risks[251](index=251&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Affirms the effectiveness of disclosure controls and notes no material changes to internal financial reporting controls - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were **effective at a reasonable assurance level**[253](index=253&type=chunk) - **No changes occurred** during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[255](index=255&type=chunk) PART II. OTHER INFORMATION Covers legal proceedings, risk factors, equity sales, and other corporate disclosures [Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) States the company is not currently involved in any material legal proceedings outside the ordinary course of business - The company is not currently involved in any legal proceedings that are expected to have a **material adverse effect** on its business, operating results, or financial condition[256](index=256&type=chunk) [Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) Indicates no material changes to the risk factors previously disclosed in the 2024 Annual Report - There were **no material changes** to the risk factors discussed in the Annual Report for the fiscal year ended December 31, 2024, and the Q1 2025 10-Q[257](index=257&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports the issuance of common stock from stock option exercises, exempt from registration under the Securities Act - An aggregate of **349,743 shares** of Class A common stock were issued during the six months ended June 30, 2025, from the exercise of stock options, claiming exemption under Section 4(a)(2) of the Securities Act[258](index=258&type=chunk) [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) Discloses the adoption of Rule 10b5-1 trading plans by two company executives for future stock sales - On May 15, 2025, Sotheara Cheav, SVP of Manufacturing, adopted a **Rule 10b5-1 trading plan** for the sale of up to 21,152 shares of Class A Common Stock[260](index=260&type=chunk) - On May 20, 2025, Jian Wang, CEO of ACM Shanghai, adopted a **Rule 10b5-1 trading plan** for the sale of up to 90,000 shares of Class A Common Stock[261](index=261&type=chunk) [Exhibits](index=62&type=section&id=Item%206.%20Exhibits) Lists the exhibits filed with the report, including officer certifications and Inline XBRL data files - Exhibits filed with the report include **CEO and CFO certifications** pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, and various Inline XBRL documents[262](index=262&type=chunk)