ACM Research, Inc. (ACMR): Business Model Canvas [Dec-2025 Updated]

You're digging into ACM Research, Inc. (ACMR), and the core story is a high-stakes bet on specialized semiconductor equipment, particularly in the massive Asian market. This isn't just a growth stock; it's a strategic infrastructure play, projected to hit around $650 million in revenue for the 2025 fiscal year. The company's proprietary Ultra C wet-processing technology is the engine, but its success is defintely tied to navigating a complex web of geopolitical risks and capitalizing on a massive domestic build-out. We need to look past the top-line numbers and see how their nine business model components-from their reliance on Tier-1 Chinese foundries to their aggressive $100 million R&D spend-map out the near-term opportunities and the critical pressure points you need to watch.

ACM Research, Inc. (ACMR) - Canvas Business Model: Key Partnerships

You're looking for the structural backbone of ACM Research's growth, and that comes down to who they partner with to manage risk and scale production. The company's Key Partnerships are heavily skewed toward the China-centric localization push, but they are also strategically expanding globally to derisk the model.

The entire partnership structure is designed to support the ambitious 2025 revenue guidance, which was narrowed to a range of $875 million to $925 million as of late 2025, implying a strong growth rate at the midpoint. This growth depends on a tight ecosystem of suppliers, manufacturers, and, most critically, their largest customers.

Strategic component suppliers for critical parts

ACM Research's primary partnership focus here is on supply chain resilience, especially given the geopolitical headwinds that have caused part shortages and shipment delays in 2025. The strategy is to move aggressively toward localization (domestic sourcing) to reduce reliance on foreign components, particularly for the ACM Shanghai subsidiary which drives nearly all revenue.

This isn't just about finding a new vendor; it's a strategic partnership to co-develop components. The company is actively qualifying new suppliers and increasing domestic sourcing to mitigate these risks. For a company with a backlog exceeding $1.27 billion as of September 29, 2025, a stable supply chain is the single most critical partnership function.

Localized manufacturing partners for assembly in China

The most significant manufacturing partnership is essentially an internal one with the company's own subsidiary, ACM Research (Shanghai), which operates as a local Chinese manufacturer. This status is a major competitive advantage.

However, the expansion itself requires partnerships for construction and operational scale. The new Lingang R&D and production center is nearing completion and is a massive commitment, designed to support up to $3 billion in annual production capacity. This capacity build-out, along with the planned opening of a new facility in South Korea in late 2025 to produce up to 200 tools annually, shows the multi-pronged approach to localized production for both Chinese and global customers.

Key research institutes for advanced process development

While specific institute names are often kept close to the vest, the partnership activity is clear from the product advancements. ACM Research's commitment to R&D is a core partnership with the scientific community, reflected in its planned R&D spending for 2025 in the 14% to 16% range of sales. This investment translates into proprietary technology that is co-developed and validated with customers.

Key technological advancements resulting from this R&D partnership ecosystem include:

• Developing the proprietary nitrogen ($N_2$) bubbling technology that improves wet etching uniformity by over 50%.
• Qualifying the high-temperature Sulfuric Peroxide Mixture (SPM) tool by a key logic manufacturer in mainland China for 28nm and below nodes.
• Winning the 2025 3D InCites Technology Enablement Award for the Ultra ECP ap-p tool, which uses proprietary horizontal plating for panel applications.

Foundries and chipmakers for joint process optimization

These are the most critical partnerships, as they directly translate into revenue and market validation. These customers are not just buyers; they are partners in qualifying new tools for their advanced process nodes (the small feature sizes on a chip). One key foundry relationship is with SMIC (Semiconductor Manufacturing International Corporation), which accounted for 18% of ACM Research's revenues in fiscal year 2023. This relationship is a significant tailwind in 2025 as SMIC ramps up production for advanced chips like Huawei's Ascend 910C.

The table below summarizes key customer engagements that act as joint process optimization partnerships in 2025:

Tool/Technology	Customer/Partner Type	Status/Impact (2025)
High-Temp SPM Tool	Key Logic Device Manufacturer (Mainland China)	Tool qualified for 28nm and below wet etching and cleaning.
Ultra ECP ap-p Tool (Panel Plating)	Industry-Leading Panel Fabrication Customer	First system delivered in late 2025 for advanced packaging (e.g., AI chips).
Backside/Bevel Etch Tool	U.S. Customer	Customer acceptance achieved, validating global market expansion.
ECP Chamber	Customer in China	Delivery of the 1,500th electroplating chamber, marking a growth milestone.

Equipment financing institutions for customer capital expenditure

Securing capital for customers' large purchases (capital expenditure) is a partnership often facilitated by state-affiliated entities in China. The company's own balance sheet strength, augmented by strategic investors in its subsidiary, indirectly supports this. In September 2025, ACM Shanghai completed its second capital raising on the STAR Market, raising net proceeds of approximately $623 million.

This capital raise, which included strategic investors like Shanghai Science & Technology Venture Capital (group) Co., Ltd. and Shanghai Pudong Science & Technology Investment Group Co., Ltd., strengthens the company's financial position to offer flexible terms, manage inventory, and fund its own capacity expansion, all of which ultimately enable customer CapEx. The cash and cash equivalents, restricted cash, and time deposits reached $1.1 billion at the end of Q3 2025. That's a defintely strong war chest to back up sales.

ACM Research, Inc. (ACMR) - Canvas Business Model: Key Activities

The core activities for ACM Research center on advanced, proprietary semiconductor equipment production and the relentless research and development (R&D) needed to stay ahead of shrinking process nodes. Your investment thesis here must acknowledge that the company's financial engine is currently fueled by its manufacturing and sales focus on major Asian chipmakers, primarily in mainland China.

For fiscal year 2025, ACM Research narrowed its full-year revenue guidance to a range of $875 million to $925 million, implying a strong reliance on executing these key activities.

High-precision semiconductor equipment manufacturing

Manufacturing is the primary key activity, focused on building complex, high-throughput wafer processing tools. This involves intricate supply chain management and precision assembly to handle the industry's most demanding specifications for cleaning, plating, and polishing.

The company's strong execution in this area is evidenced by its significant sales backlog, which stood at over $1.27 billion (RMB 9,071.5 million) as of September 29, 2025, representing a 34.1% year-over-year increase.

A major milestone in this activity was the delivery of the 1,500th Electro-Chemical Plating (ECP) chamber, showcasing the scale of their plating technology adoption.

• Manufacture single-wafer and batch wet cleaning tools.
• Produce advanced packaging and furnace equipment.
• Scale production capacity in facilities like the Lingang R&D and production center.

Proprietary Ultra C technology research and development (R&D)

R&D is defintely a mission-critical activity, ensuring the company's cleaning and plating tools meet the requirements for advanced-node manufacturing (like 3D DRAM, 3D logic, and 500+ layer 3D NAND). ACM Research must continually invest in its proprietary technologies to maintain a competitive edge against global giants.

In the third quarter of 2025, R&D spending was substantial, accounting for 14% of sales. This high rate of investment is what drives product differentiation.

Here's a quick look at the core proprietary technology advancements:

Proprietary Technology	Core Function	2025 Advancement/Impact
Ultra C wb Wet Bench	Batch wafer cleaning and wet etching	Upgraded with patent-pending N₂ bubbling, improving wet etching uniformity by over 50%.
Ultra C Tahoe	SPM (Sulfuric Peroxide Mix) cleaning	Features a hybrid batch/single-wafer architecture to boost throughput and reduce chemical consumption.
SAPS™ (Space Alternated Phase Shift)	Megasonic cleaning	Used for high-efficiency, scratch-free particle removal on wafers.

Global equipment installation and after-sales service

The key activity extends beyond shipping a tool; it includes the complex installation, qualification, and ongoing maintenance required for semiconductor fabrication plants (fabs). This is a crucial revenue stream, too, and a major factor in customer retention.

The 'Advanced Packaging (exclude ECP), Services & Spares' segment provides a clear picture of this activity's financial contribution, accounting for 6.67% of the company's total annual revenue.

The company is actively investing to support its growing global customer base, including expanding its Oregon facility to serve as a base for customer evaluations, technology development, and initial production for global customers.

Intellectual property (IP) protection and patent portfolio management

In the semiconductor equipment space, IP is your moat. Protecting proprietary process technology, like the Ultra C series, is a constant and necessary legal activity. This work ensures that the competitive advantages gained through R&D translate into defensible market share.

The company has compiled nearly 500 patents, a portfolio that underpins the technological differentiation of its cleaning and plating tools. What this estimate hides is the geographic distribution of those patents, which is critical for global protection.

Sales and marketing focused on major Asian chip manufacturers

The primary sales activity is focused on mainland China, where ACM Research is the leading domestic supplier of wafer cleaning tools. This strategic focus has been a resilient growth engine, even amid broader geopolitical tensions.

The strategy is now two-pronged: maintain dominance in the home market while expanding internationally. The company is actively working on securing additional major customer wins in global markets, leveraging its technological leadership in both front-end processing and advanced packaging applications.

• Target tier-one semiconductor manufacturers, predominantly in China.
• Secure customer acceptance for new platforms (e.g., Track, PECVD).
• Penetrate international markets with new tool acceptances, such as the backside/bevel etch tool accepted by a U.S. customer.

ACM Research, Inc. (ACMR) - Canvas Business Model: Key Resources

You're looking for the foundational assets that power ACM Research, Inc.'s (ACMR) growth, and honestly, it boils down to intellectual property, specialized people, and a massive cash hoard. The company's key resources are heavily weighted toward its proprietary technology and its strong financial position, which is defintely needed to fuel its aggressive expansion in the Chinese semiconductor market.

Here's the quick math on their financial strength: as of Q3 2025, the company is sitting on over a billion dollars in cash, mostly thanks to a recent capital raise in China. That war chest is the ultimate resource for R&D and capacity expansion.

Proprietary Ultra C wet-processing technology patents

The core of ACM Research's value proposition is its intellectual property (IP), specifically the proprietary technology bundled under the Ultra C wet-processing brand. This isn't just one patent; it's a suite of cleaning and etching innovations that solve critical yield issues for advanced chip manufacturing.

The key technologies are the Space Alternated Phase Shift (SAPS) and Timely Energized Bubble Oscillation (TEBO), which use megasonic energy to clean wafers without damaging the increasingly delicate device features. Plus, the company continues to innovate, like the major upgrade announced in July 2025 to the Ultra C wb cleaning tool, which integrates a patent-pending nitrogen (N2) bubbling technology to improve wet etching uniformity by more than 50% compared to conventional batch processes.

Highly skilled engineering and R&D talent pool

You can't build world-class semiconductor equipment without world-class engineers. ACM Research's talent pool, particularly in R&D, is a critical, non-physical asset. The company's total employee count was 2,023 as of the end of 2024, reflecting a 27.23% increase from the prior year to keep up with demand and new product development.

To be fair, the cost of this talent shows up in the financials: R&D spending for Q3 2025 was a significant slice of the operating expenses, representing 14% of sales. This continuous investment in people and innovation is what allows them to roll out new platforms like the Track, PECVD, and panel-level packaging tools, expanding their serviceable market. They're also building out their Oregon facility to serve as a technology development base for global customers.

State-of-the-art manufacturing facilities in Shanghai and Fremont

While the company is headquartered in Fremont, California, U.S., the majority of its manufacturing and operational might is centered in Shanghai through its subsidiary, ACM Research (Shanghai), Inc. This dual-location structure is a key resource, blending US-based corporate governance and R&D with a massive, high-growth manufacturing base in China.

The physical capacity is expanding fast. The $623 million in net proceeds raised by ACM Shanghai in September 2025 is specifically earmarked to complete the Lingang mini-line and expand production capacity to meet future global demand. This expansion is directly tied to their ability to fulfill a growing backlog.

Strong balance sheet supporting working capital needs

A strong balance sheet is a key resource, especially in the capital-intensive semiconductor equipment industry where long sales cycles and large customer orders require significant working capital. ACM Research is exceptionally well-capitalized as of late 2025.

Here's a snapshot of their financial resources:

Metric	Value (As of Q3 2025)	Context/Source
2025 Revenue Guidance (Narrowed)	$875 million to $925 million	Implies 15% YoY growth at midpoint.
Cash, Restricted Cash, and Time Deposits	$1.1 billion	As of September 30, 2025, significantly boosted by capital raise.
Net Proceeds from ACM Shanghai Capital Raise	Approximately $623 million	Completed in September 2025, for capacity and R&D.
Total Backlog (ACM Shanghai)	$1.27 billion (RMB 9,071.5 million)	As of September 29, 2025, a 34.1% YoY increase.

The massive cash position, fueled by the capital raise, gives them the financial muscle to accelerate R&D, expand production, and offer competitive financing terms to major customers. It's a huge competitive advantage.

Deep relationships with major Chinese semiconductor foundries

In the end, technology and cash are useless without customers. ACM Research's deepest and most strategic resource is its entrenched relationship with China's top chip manufacturers. This is a critical resource because it insulates them somewhat from geopolitical risks and provides a guaranteed, high-growth market for their equipment.

Their customer base is highly concentrated and loyal, which shows how essential their tools are:

• Top 4 customers accounted for 66.5% of Q2 2025 revenue.
• Major clients include industry giants like SMIC, Hua Hong, CXMT, and YMTC.
• The company's position as China's dominant cleaning equipment vendor makes it a key beneficiary of the country's push for semiconductor self-sufficiency.

This trust is evidenced by the September 2025 shipment of their first Ultra Lith KrF track system to a major Chinese logic wafer fab, signaling their expansion into new, high-value product lines with key customers. It's a powerful, sticky relationship.

ACM Research, Inc. (ACMR) - Canvas Business Model: Value Propositions

The core value proposition for ACM Research, Inc. is straightforward: enabling high-yield semiconductor manufacturing at a lower total cost of ownership (TCO) than global competitors, particularly in the critical wafer cleaning and advanced packaging segments. Your customers aren't just buying equipment; they are buying superior process technology that directly impacts their chip yield and, ultimately, their bottom line.

High-yield, cost-effective Ultra C single-wafer cleaning

Cleaning tools, anchored by the Ultra C platform, remain the backbone of ACM Research's offering, representing approximately 72% of the company's revenue mix in the second quarter of 2025. The value here is in the proprietary technology that delivers superior performance at a competitive cost. For instance, the upgraded Ultra C wb (wet bench) cleaning tool, which uses a patent-pending nitrogen ($\text{N}_2$) bubbling technique, improves wet etching uniformity by more than 50% compared to conventional batch processes. That's a massive jump in precision for advanced-node manufacturing.

Here's the quick math: better uniformity means fewer defects, which translates directly to higher chip yield for the customer. Plus, the batch processing nature of the Ultra C wb is defintely more cost-effective and uses less chemical consumption than single-wafer wet cleaning alternatives.

Timely local service and support in key Asian markets

For semiconductor fabrication plants (fabs) in Asia, uptime is everything, and a local presence is a significant competitive advantage over distant suppliers. ACM Research capitalizes on this by being the leading domestic supplier of wafer cleaning tools in China. The company generated $775.75 million in revenue from China in the prior fiscal year, underscoring this geographical concentration. This is a clear value proposition built on proximity and speed.

The company supports this with a vast infrastructure, including the Shanghai Asia-Pacific Manufacturing Center and the new, massive Lingang R&D and Production Center, which spans over 1.4 million square feet. This regional focus ensures faster response times, easier access to spare parts, and cultural alignment with its largest customer base.

Customization of equipment for specific customer process needs

The semiconductor industry demands highly specialized tools for different process nodes (the size of the smallest feature on a chip) and materials. ACM Research delivers this value through product flexibility and rapid customer qualification. The company's single-wafer high-temperature SPM tool, for example, was qualified by a key logic device manufacturer in mainland China for wet etching and wafer cleaning on technology nodes at 28nm and below.

This ability to tailor solutions is a key differentiator, moving beyond standard cleaning to semi-critical processes:

• Delivered a backside/bevel etch tool to a U.S. customer in Q1 2025.
• SPM tools have been delivered to 13 customers as of Q1 2025.
• Investing in the Oregon facility to serve as a base for customer evaluations and initial production for global customers.

You need a partner who can adjust to your specific fab recipes.

Advanced plating and polishing tools for next-gen chip architecture

The company's value proposition is expanding rapidly beyond cleaning into high-growth areas like advanced packaging, driven by the demand for artificial intelligence (AI) and data center investments. This is where the new tools come in. In the third quarter of 2025, ACM Research launched its Ultra ECDP (Electrochemical Deplating) tool for compound semiconductor manufacturing.

More recently, in November 2025, the company delivered its first horizontal panel electrochemical plating tool, the Ultra ECP ap-p, for fan-out panel-level packaging. This tool is a first-to-market commercial copper deposition system for the large-panel market, supporting plating of copper (Cu), nickel (Ni), tin-silver (SnAg), and gold (Au). This is a significant move into next-generation packaging.

Advanced Tool Milestone (2025)	Product/Technology	Value Proposition
Q2 2025 Shipment Milestone	ECP Chamber	Delivered the 1,500th electroplating chamber, showing market adoption.
Q3 2025 Launch	Ultra ECDP Tool	New entry into electrochemical deplating for compound semiconductors.
Q4 2025 Delivery	Ultra ECP ap-p Tool	First commercial horizontal panel-level copper deposition system for advanced packaging.

Reduced chemical and water usage for lower operational costs

A key value for any semiconductor manufacturer is lowering operational expenses (OpEx), and that means minimizing the use of expensive chemicals and water. ACM Research addresses this directly through proprietary design features in their cleaning tools. The Ultra C wb batch process is inherently designed for lower chemical consumption compared to single-wafer processes.

Furthermore, the proprietary nozzle on the single-wafer high-temperature SPM tool reduces acid mist and maintenance needs, which enhances system uptime and lowers the overall cost of running the tool. This focus on efficiency helps customers manage their gross margin, which is a constant pressure point in the industry.

ACM Research, Inc. (ACMR) - Canvas Business Model: Customer Relationships

You're looking at ACM Research, Inc.'s customer relationships, and the core takeaway is this: their model is not transactional; it's a high-touch, long-term partnership built on co-development and localized, defintely rapid service. This strategy is essential in the semiconductor equipment world, where tool performance directly impacts a customer's multi-billion-dollar fabrication plant (fab) yield.

The relationship is anchored by a global network of direct sales and engineering teams, which is crucial for selling complex equipment. For the 2025 fiscal year, the revenue stream related to this ongoing relationship-specifically Advanced Packaging (excluding ECP), Services, and Spares-is a high-growth segment, surging 230.6% year-over-year in Q3 2025 alone. This growth shows customers are committing to the installed base for the long haul.

Dedicated, long-term technical support and service contracts

The revenue from services and spares is a critical, sticky component of the business model, providing a predictable revenue stream after the initial equipment sale. While the bulk of revenue comes from new tool sales, the maintenance and support segment is expanding rapidly, reflecting a growing installed base and customer reliance on ACM Research's proprietary technology.

For the third quarter of 2025, the revenue from the segment including Advanced Packaging (excluding ECP), Services, and Spares reached $27.74 million. This represented approximately 10.3% of the total Q3 2025 revenue of $269.16 million. This is a significant jump from the first quarter of 2025, which saw this segment contribute about $15.15 million.

Revenue Segment	Q3 2025 Revenue (USD)	Approx. % of Q3 2025 Total Revenue
Single Wafer Cleaning, Tahoe, and Semi-Critical Cleaning Equipment	$181.57 million	67.4%
ECP (Front-End and Packaging), Furnace, and Other Technologies	$59.85 million	22.2%
Advanced Packaging (Excluding ECP), Services, and Spares	$27.74 million	10.3%
Total Q3 2025 Revenue	$269.16 million	100%

Direct sales and engineering engagement with fab managers

ACM Research employs a direct sales force augmented by field application engineers (FAEs) in key regions like Asia, Europe, and North America. This is a necessity because a semiconductor tool sale is a multi-million-dollar decision, not a simple procurement. The FAEs are co-located with the sales teams to provide immediate technical pre- and post-sale support, often during the critical fab planning and production line qualification phases.

The new Hillsboro, Oregon facility, for example, is a dedicated sales and service hub strategically located near major North American customers in the 'Silicon Forest'. This 11,000 square foot facility includes a cleanroom demonstration lab, allowing fab managers and engineers to evaluate and test new tools hands-on before committing to a purchase. This is a clear move to embed the company's technical staff directly into the customer's ecosystem.

Co-development of new process technologies with key clients

The company's growth strategy centers on delivering 'tailored solutions that cater to the unique requirements of innovation-driven businesses'. This means they don't just sell off-the-shelf equipment; they partner with leading customers to develop new process technologies. This is the ultimate form of customer lock-in, but it's a win-win.

You see this in their new product rollouts:

• Delivery of the first Ultra Lith Baker system to a leading global display panel manufacturer in November 2025.
• Qualification of the high-temperature SPM tool by a key logic device manufacturer in China in Q1 2025.
• Anticipated delivery of a Track platform beta tool to a key customer in late 2025.

The customer gets a tool perfectly optimized for their next-generation chip; ACM Research gets a critical first-mover advantage and a proven track record for the next sale.

High-touch, consultative selling approach for complex equipment

The sales motion is consultative, positioning ACM Research as a technical advisor rather than just a vendor. For highly complex equipment like their proprietary Space Alternated Phase Shift (SAPS™) cleaning systems or the new Ultra Lith Baker system, the selling process is about solving a customer's specific yield and process challenges. The Ultra Lith Baker, for instance, was engineered to address industry-wide issues like critical dimension (CD) variation with a precision of ±5% UV intensity uniformity. Selling this requires deep process knowledge and a willingness to customize the solution. This is a relationship built on technical competence.

Trust built on equipment performance and local responsiveness

Trust in the semiconductor industry is earned through equipment uptime, process yield, and local support. The company's global footprint, with subsidiaries in Shanghai, China, and Inchon, South Korea, plus the new Oregon facility, is designed for local responsiveness. They have a proven track record of collaborating with industry leader customers to meet processing requirements on advanced technology nodes for up to 12-inch wafer size. The company is committed to providing innovative technology, world-class products, and strong service and support around the globe. This local presence, coupled with proprietary technologies like Stress-Free Polishing (SFP), is what converts a new customer into a long-term partner.

ACM Research, Inc. (ACMR) - Canvas Business Model: Channels

You're looking for the how-how does ACM Research, Inc. actually get its complex wafer processing equipment into the hands of global chipmakers? The answer is a highly specialized, direct-touch model, which is the only way to sell multi-million dollar capital equipment. It's a channel strategy built on technical expertise, deep localization, and a massive physical footprint in the world's most critical semiconductor hubs.

This direct approach is essential for a company that expects its full fiscal year 2025 revenue to land between $875 million and $925 million, a range narrowed in November 2025. You can't hit those numbers selling cleaning tools and electroplating chambers through a distributor; you need boots on the ground right next to the customer's fabrication plant (fab).

Direct sales force targeting major semiconductor manufacturers

ACM Research relies on a direct sales force to engage with tier-one semiconductor manufacturers. This isn't a transactional sales team; it's an engineering-led group that focuses on long qualification cycles and deep technical integration. The sales process is inherently direct because the product-like the proprietary Ultra C wb Wet Bench Cleaning Tool-must be qualified by the customer, a process that can take months or even a year.

The entire sales pipeline is focused on securing customer acceptance for first-tool systems, which then unlocks future revenue. For example, in 2025, they secured qualification for their high-temperature SPM tool from a leading logic customer in China and customer acceptance for a backside/bevel etch tool from a U.S. customer. This direct engagement ensures the company retains full control over the customer relationship and technical support, which is defintely a high-value proposition.

Field service engineers for installation and maintenance

The sale of a wafer processing tool is just the beginning; the long-term relationship is managed by field service engineers (FSEs). These FSEs are the critical channel for post-sale value delivery, handling installation, commissioning, and ongoing maintenance. ACM Research has established 'advanced service coverage' at strategic locations globally to provide world-class support.

This service channel is a major focus for global expansion. The company is actively expanding its sales and services teams in key regions like the United States, Korea, Europe, and South East Asia to support its long-term goal of generating half of its revenue from outside of China. The FSEs are the human face of the company's commitment to tool uptime and yield improvement.

Localized sales and support offices in key regions (e.g., China, Korea)

To support the direct sales and service model, ACM Research has built a significant physical presence in the world's main semiconductor manufacturing clusters. This localization is a non-negotiable part of the channel strategy, allowing for faster response times and better cultural alignment with major customers.

Here's a quick look at their operational footprint as of late 2025:

Region	Key Locations & Function	Notes on 2025 Expansion
China (Mainland)	Shanghai (R&D, Engineering, Manufacturing, Principal Subsidiary), Wuxi, Beijing (Service)	The new 1-million-square-foot development and production facility in Shanghai, which opened in early 2025, more than tripled manufacturing capacity and expanded demo space by 5x.
United States	Fremont, California (Headquarters), Hillsboro, Oregon	Hillsboro (11,000-square-foot facility) serves as a core sales and service hub for North American customers, including a dedicated cleanroom and demonstration lab.
Korea	Seongnam-si, Gyeonggi-do; Icheon-si, Gyeonggi-do (Sales/Support Offices)	A new, larger manufacturing facility is planned to open in the second half of 2025, located near major semiconductor makers to support regional customer qualification.
Taiwan	Advanced service coverage.	Part of the broader Asia-Pacific service expansion.

Technology demonstration centers for customer trials

For high-capital equipment, the channel isn't just a physical office; it's a cleanroom where the customer can test the product. These technology demonstration centers are crucial pre-sales channels that de-risk the customer's investment and prove the value proposition.

The company is heavily investing in these demo labs to accelerate customer evaluations for new platforms like Track and PECVD. Key centers include:

• The new 1-million-square-foot facility in Shanghai, which significantly expanded demo space.
• The Hillsboro, Oregon facility, which includes a dedicated cleanroom and demo lab for hands-on customer evaluation of new tools.
• The Oregon facility also serves as a base for technology development and initial production for global customers.

This is where the rubber meets the road; customers get a real-world look at the performance of the tools, like the proprietary Space Alternated Phase Shift (SAPS™) cleaning technology.

Investor relations and public filings for financial communication

While not a traditional sales channel, Investor Relations (IR) is a vital communication channel for a publicly traded company on the NASDAQ (ACMR) with a major subsidiary, ACM Research (Shanghai), Inc., listed on the Shanghai Stock Exchange (STAR Market). This channel manages the flow of financial information to investors, analysts, and the broader market.

Key communications channels include:

• Quarterly Earnings Releases: Q3 2025 revenue of $269.2 million was communicated via press release and conference call on November 5, 2025.
• Public Filings: Required SEC filings (10-Q, 10-K) and specific preliminary revenue announcements to coincide with the reporting obligations of the Shanghai subsidiary.
• Dedicated Investor Website: A centralized hub for financial data, webcasts, and corporate governance documents.

The IR channel is critical for maintaining investor confidence, especially following the September 2025 capital raise by ACM Shanghai, which brought in net proceeds of approximately $623 million. That's a lot of money to communicate about.

ACM Research, Inc. (ACMR) - Canvas Business Model: Customer Segments

ACM Research's customer base is highly concentrated in the Asia-Pacific region, specifically Mainland China, which is the primary engine of its revenue growth. You need to understand that their strategy is a calculated bet on the domestic Chinese semiconductor fabrication (fab) expansion, but they are defintely pushing for global diversification with new product platforms.

The company's full-year 2025 revenue guidance is a tight range of $875 million to $925 million, with the bulk of sales going to a few major players in China. This customer concentration means strong relationships are vital, but it also presents a single-point risk if geopolitical or domestic spending shifts occur. It's a high-growth, high-stakes game.

Tier-1 Chinese semiconductor foundries (largest revenue source)

This segment represents the core of ACM Research's business and its most significant revenue stream. These are the large-scale, state-backed foundries and memory manufacturers driving China's push for self-sufficiency in chip production. The company's long-term strategic target for the Mainland China market is ambitious, aiming to exceed $2.5 billion in revenue.

The reliance on a few key customers is clear from the latest available data. Here's the quick math on 2024's revenue concentration, which sets the stage for 2025's performance:

Key Chinese Foundry Customer	Approximate % of 2024 Revenue
Huali Microelectronics (HLMC)	15%
Semiconductor Manufacturing International Corporation (SMIC)	14%
Yangtze Memory Technologies Co., Ltd. (YMTC)	12%

What this estimate hides is the intense competition for tool placement and the long qualification cycles required by these customers, but once a tool is accepted, the recurring revenue from spares and services is sticky.

Global memory (DRAM, NAND) and logic chip manufacturers

While China dominates the revenue, ACM Research is actively pursuing major global chipmakers to diversify its sales. This is a critical strategic move for long-term stability. The company is positioning its core cleaning tools, like the Ultra C wb Wet Bench, for advanced applications in leading-edge manufacturing.

Key areas of focus for global market penetration include:

• Qualifying new tools for 3D NAND and 3D DRAM devices.
• Targeting 3D logic device manufacturers with proprietary cleaning technology.
• Investing in the Oregon facility to serve as a base for customer evaluations and initial production for global customers, signaling a serious commitment to the U.S. and other international markets.

Advanced packaging and assembly service providers

This is a high-growth segment, driven by the increasing complexity of chip integration for applications like Artificial Intelligence (AI) and high-performance computing. ACM Research's expansion into electro-chemical plating (ECP) and panel-level packaging tools directly serves this customer segment.

The growth here is significant: in Q3 2025, revenue from the Advanced Packaging (excluding ECP), Services & Spares segment was $27.7 million, representing 10% of total revenue. This compares to the larger, but slower-growing, Single Wafer and Semi-Critical Cleaning Equipment which accounted for $181.6 million (67%) of Q3 2025 revenue. The Ultra ECP ap-p tool, which uses a proprietary horizontal plating technology for large panel applications, is a key product for these customers.

Emerging domestic semiconductor manufacturers in Asia

Beyond the Tier-1 giants, ACM Research is capitalizing on the broader wave of domestic fab construction across Asia, particularly in China. These smaller, often newer, manufacturers are looking for proven, cost-effective alternatives to incumbent Western and Japanese equipment suppliers. The company has seen increased engagement with new customer platforms in the China market, supporting its strengthened long-term revenue goals.

A new customer segment was officially entered in November 2025 with the delivery of the first Ultra Lith Baker system to a leading global display panel manufacturer. This move expands the addressable market beyond traditional semiconductor wafers to the high-volume display panel industry.

Research and development labs requiring specialized cleaning tools

This segment includes the R&D arms of major chipmakers and dedicated research institutions. They are crucial for the initial qualification and adoption of ACM Research's newest, most advanced tools. The company uses these engagements to validate its proprietary technologies, like the Space-Divided Multi-Chamber (SDMC) cleaning and the high-temperature Supercritical Water (SCW) tools.

A recent win was the qualification of their high-temperature SPM (Sulfuric Peroxide Mixture) tool by a key logic device manufacturer in Mainland China, demonstrating success in moving from R&D validation to potential high-volume manufacturing orders. For you as an investor, tracking these initial qualifications is a leading indicator for future revenue. The company is spending heavily on this, with R&D planned to be in the 14% to 16% range of sales for 2025.

ACM Research, Inc. (ACMR) - Canvas Business Model: Cost Structure

The cost structure for ACM Research, Inc. is fundamentally driven by its position as a high-tech, capital-intensive semiconductor equipment manufacturer. You should view their costs as a mix of heavy, fixed investment in innovation and variable costs tied to complex, global production. The key takeaway is that their commitment to R&D is non-negotiable, and managing their Cost of Goods Sold (COGS) in a volatile supply chain is the near-term risk to profitability.

Heavy R&D investment, projected around $100 million in 2025

Innovation is the lifeblood of a wafer processing company, so you see a substantial, continuous investment in Research and Development (R&D). This is a fixed cost that drives future value. For the first nine months of 2025, ACM Research's actual R&D spending was already at $100.971 million. [cite: 4 in previous step]

Management is defintely committed to keeping this spending high, which is the right strategic move to compete with industry giants. They are targeting R&D to remain in the 14% to 16% range of sales going forward. This investment is fueling the development of next-generation tools, like the new KrF Track system and the Ultra ECP ap-p tool for panel-level packaging, which are critical for future revenue streams. [cite: 5, 1 in previous step]

High cost of goods sold (COGS) due to complex components

Their Cost of Goods Sold (COGS) is inherently high because they are building highly complex, precision machinery. This cost includes raw materials, labor, and manufacturing overhead. The complexity of the supply chain introduces significant risk, which we saw play out in the third quarter of 2025.

For Q3 2025, the Cost of Revenue was $156.011 million, [cite: 4 in previous step] resulting in a gross margin of 42.1%. That margin was at the low end of their target range (42% to 48%) because of two main pressures:

• Product Mix Shift: A change in the mix of products sold caused a drop of about 200 basis points in margin.
• Inventory Provisions: Inventory write-downs accounted for roughly 300 basis points of the margin decline. This is a direct cost of managing aging raw materials and finished goods due to shipment delays and part shortages, a real-world supply chain challenge. [cite: 1 in previous step]

Significant costs for field service and application engineering

In the semiconductor equipment world, your service support is a major competitive factor. Customers need high tool uptime and reliability, so ACM Research must invest heavily in field service and application engineering personnel. This cost is critical for customer acceptance of new tools and for recurring service and spare parts revenue.

The company is actively investing in infrastructure to support this, such as its Oregon facility, which is being developed to serve as a base for customer evaluations, technology development, and initial production for global customers. That's a capital expenditure that directly supports the application engineering function-you have to show customers the technology works in their environment before they buy. That investment is a cost of sales and a driver of future revenue, not just a line item.

Manufacturing overhead and facility maintenance expenses

The company is in a major expansion phase, meaning manufacturing overhead and facility costs are set to climb. These are largely fixed costs that increase with new capacity. The capital expenditure (CapEx) for Q3 2025 alone was $43.2 million, [cite: 1 in previous step] which is money spent on property, plant, and equipment that will turn into depreciation and facility maintenance expenses over time.

Here's the quick math on their expansion: ACM Shanghai, the primary subsidiary, recently completed a private offering that raised net proceeds of approximately $623 million. [cite: 11, 1 in previous step] A significant portion of these funds is earmarked for capital expenditures, including investment in the Lingang mini-line and expanding global production capacity. [cite: 1 in previous step] You're building the factories of the future now, so your overhead is going up.

Sales, General, and Administrative (SG&A) for global operations

SG&A covers the non-production costs needed to run a global business, including sales commissions, executive salaries, and corporate functions. ACM Research keeps a tight, but growing, lid on these costs relative to their sales growth.

Their long-term financial model targets Sales and Marketing in the 8% range and General and Administrative (G&A) in the 6% range. In Q3 2025, the actual operating expenses were $76.9 million, [cite: 1 in previous step] with Sales and Marketing at 7.7% of sales and G&A at 6.9% of sales. [cite: 1 in previous step] The G&A figure includes non-cash items, like the $7.6 million in stock-based compensation expense recorded in Q3 2025.

Cost Metric	Actual Q3 2025 Figure	2025 Full-Year Projection (Midpoint Revenue $900M)	Key Driver / Commentary
Revenue Guidance	$269.2 million	$875 million to $925 million	Narrowed range implies confidence, but the cost base must support this growth.
Cost of Revenue (COGS)	$156.011 million [cite: 4 in previous step]	Approx. $521.1 million (Based on 42.1% GM)	High due to complex, custom components; affected by inventory provisions.
Gross Margin (GM)	42.1%	Target Range: 42% to 48%	Margin pressure from product mix and 300 basis points from inventory write-downs.
R&D Expense	$39.651 million [cite: 4 in previous step] (14% of sales)	$100.971 million (9-Month Actual) [cite: 4 in previous step]	Strategic investment in next-gen tools (e.g., Track, PECVD); target is 14%-16% of sales.
SG&A Expense (Sales & Mktg + G&A)	$39.38 million (7.7% S&M + 6.9% G&A of $269.2M) [cite: 1 in previous step]	Approx. $131.4 million (14.6% of $900M)	Includes a non-cash component: $7.6 million in stock-based compensation in Q3.
Capital Expenditures (CapEx)	$43.2 million [cite: 1 in previous step]	N/A (Quarterly figure shows heavy investment)	Direct investment in production capacity expansion, like the Lingang mini-line. [cite: 1 in previous step]

Finance: draft a 13-week cash view by Friday that explicitly models the impact of the $43.2 million Q3 CapEx and the estimated 300 basis point inventory provision on working capital.

ACM Research, Inc. (ACMR) - Canvas Business Model: Revenue Streams

You need to know exactly where the money is coming from to project future growth, and for ACM Research, Inc., that story is still overwhelmingly about selling high-tech cleaning equipment, but the mix is defintely shifting. The core revenue driver is the sale of their wet-processing tools, but the high-growth areas are now in advanced packaging and the essential, recurring revenue from services and spare parts is finally becoming a more meaningful slice of the pie.

For the full fiscal year 2025, ACM Research narrowed its revenue guidance to a range of $875 million to $925 million, implying a solid 15% growth at the midpoint. That growth is fueled by a multi-product portfolio, but the breakdown tells you where the current operational strength lies and where the future opportunities are being seeded. Here's the quick math on the most recent quarter, Q3 2025, which totaled $269.2 million in revenue.

Sales of Ultra C and other wet-processing equipment (main driver)

The single-wafer and semi-critical cleaning equipment-the core of the business, including the flagship Ultra C tools-remains the dominant revenue stream. This is where ACM Research built its reputation. In the third quarter of 2025, the Cleaning segment generated $181.6 million in revenue.

This segment still accounts for the lion's share, making up 67% of the total Q3 2025 revenue. To be fair, this percentage is actually down from 79% in the same quarter last year, which shows the company's strategic push to diversify is working, but it's still the engine. The Ultra C wb (wet bench) cleaning tool, for instance, continues to be a key product, with recent upgrades like the patent-pending N₂ bubbling technology helping to keep it competitive in advanced-node applications.

Recurring service revenue from maintenance contracts

This is the revenue stream every seasoned analyst watches closely because it's high-margin and predictable. It's not just about selling a machine once; it's about the long-term relationship. ACM Research groups its services and spare parts revenue with its smaller Advanced Packaging products (excluding Electro-Chemical Plating, or ECP) into one segment. In Q3 2025, the 'Advanced Packaging & Other' segment, which includes services and spares, generated $27.7 million.

While this is only 10% of total revenue, it's a high-growth area, jumping 230.6% year-over-year in Q3 2025. This massive increase suggests that as the installed base of their equipment grows, the demand for maintenance contracts, technical support, and the inevitable flow of spare parts is accelerating dramatically. That's a powerful, sticky revenue model that will smooth out the cyclical swings of equipment sales.

Sales of spare parts and consumables

As noted, revenue from spare parts and consumables is embedded within the 'Advanced Packaging & Other' segment, contributing to the $27.7 million figure in Q3 2025. The nature of semiconductor manufacturing means these parts-things like filters, specialized nozzles, and chemical delivery components-are consumables that must be replaced regularly. This creates a highly reliable revenue annuity, a great source of cash flow that is less sensitive to new fab construction cycles.

Revenue from advanced packaging and plating tools

Advanced packaging is a critical growth vector, driven by the demand for higher-performance chips for AI and data centers. ACM Research's revenue from Electro-Chemical Plating (ECP) tools is a key component here, and it's bundled with their furnace and other technologies. This 'ECP, Furnace & Other' segment brought in $59.9 million in Q3 2025, accounting for 22% of total revenue.

This segment saw a significant 73.0% year-over-year growth in Q3 2025, showcasing strong customer adoption beyond the core cleaning business. The company is making great progress with its proprietary horizontal plating technology, particularly the Ultra ECP ap-p tool for panel-level packaging, which is a big deal for next-generation AI chips. They plan to ship the first of these panel plating tools in the fourth quarter of 2025.

Potential revenue from new product lines like furnace equipment

The company is intentionally expanding its serviceable available market (SAM), which they estimate is around $20 billion for 2025. New product lines are what will drive the next wave of growth. Furnace tools, for example, are now contributing incremental revenue in 2025 and are part of that fast-growing $59.9 million 'ECP, Furnace & Other' segment.

Other major new product lines that are in customer evaluations and are expected to start contributing revenue in the near term include:

• Track systems for essential lithography-related applications.
• PECVD (Plasma Enhanced Chemical Vapor Deposition) platforms.
• Panel-level packaging platforms, which are crucial for large-area AI chips.

These new tools are essential for building a multi-product portfolio that will provide a solid foundation for future growth.

Here is a snapshot of the revenue mix from the most recent quarter:

Revenue Stream Segment	Q3 2025 Revenue Amount	Q3 2025 Revenue Mix	Year-over-Year Growth (Q3 2025)
Cleaning (Ultra C, Tahoe, etc.)	$181.6 million	67%	Up 12.8%
ECP, Furnace & Other (Plating, Thermal)	$59.9 million	22%	Up 73.0%
Advanced Packaging & Other (Services, Spares, excl. ECP)	$27.7 million	10%	Up 230.6%
Total Q3 2025 Revenue	$269.2 million	100%	Up 32.0%

Finance: draft a 13-week cash view by Friday, factoring in the 230% growth rate in the services/spares segment to better model working capital needs.