Business Overview / Sources of Revenue

ACM Research (ACMR) develops, manufactures, and sells advanced wafer processing equipment for the semiconductor industry. The company’s primary revenue comes from supplying wet cleaning, electroplating, stress-free polishing, and other semiconductor fabrication equipment to integrated circuit (IC), compound semiconductor, wafer-level packaging, and wafer manufacturing markets[1][2][3][5].

ACMR earns revenue mainly by selling capital equipment and providing related service solutions to semiconductor manufacturers globally, with significant operations in both Asia and the U.S.[3][5]. In 2024, ACMR reported $782.12 million in revenue, with major contributions from its wet cleaning and packaging tools for wafer assembly and front-end production processes[5]. While the exact percentage breakdown by product line is not published in the provided sources, the bulk of revenue is derived from equipment sales, particularly in wet wafer processing and related advanced manufacturing tools[5].

Revenue Growth Potential and Recurrence

ACM Research (ACMR) does not have a large share of recurring revenue; its business primarily depends on capital equipment sales for the semiconductor industry, which are typically transactional rather than recurring in nature. The company’s recent quarterly and annual results underscore rapid growth, with revenues rising from $557.7 million in 2023 to $782.1 million in 2024, representing a growth rate of over 40% year-over-year[3][2]. Over the past several years, annual revenue growth has consistently ranged between 40% and 65%[3]. Looking ahead, ACMR’s expansion plans and strong balance sheet position it for continued growth, and while growth rates may moderate, analysts expect high-teens to low-20% annual revenue growth over the next 5+ years, driven by increasing semiconductor demand and geographic diversification[5][4][1].

Economic Moat Factors

ACM Research (ACMR) possesses a narrow economic moat primarily based on its intangible assets and proprietary technologies[2]. The company has built a competitive advantage through its superior products and top-notch R&D team[3]. ACMR demonstrates technological leadership with innovations like its Ultra ECP ap-p tool, which has won industry recognition[4].

The company's dominance in China's semiconductor cleaning market, where it holds a strong position in the $782M total addressable market, further strengthens its moat[4]. ACMR's SAPS/TEBO technology appears to provide technological differentiation, though specific details on this advantage are limited in the search results[4].

While the company enjoys 50% gross margins (slightly higher than competitor Lam's 48%) and impressive revenue growth (47% 3-year CAGR versus Lam's 14%), these financial metrics support the existence of competitive advantages that allow ACMR to maintain pricing power and market position[4].

Leadership

ACM Research’s CEO, Dr. David H. Wang, is the company’s founder and has held the role since January 1998, leading ACM for over 27 years[1][2][3][4]. Dr. Wang has deep expertise in semiconductor technology, holding more than 100 patents and inventing stress-free copper polishing technology[1][2]. While his exact ownership stake is not specified in the provided results, founders of his tenure typically hold significant equity. Other key executives include Mark A. McKechnie (CFO) and Jian Wang (CEO of ACM Research Shanghai)[1][5].

Financial Health

ACM Research (ACMR) maintains a healthy balance sheet, with $492.8 million in cash and short-term investments easily covering its $227.4 million in total debt, resulting in a debt-to-equity ratio of 19.7%[5]. The company reported continued profitability and positive cash generation in Q1 2025[1][4]. While detailed quarterly free cash flow and margin figures are not specified, recent results confirm solid profitability and positive cash flow[1]. ACM Research has not shown signs of excessive share dilution and, based on recent balance sheet updates, appears to use debt prudently without notable shareholder dilution[5].

Last updated Jun 1, 2025