ACM Research (NASDAQ) ACMR

ACM Research makes machines that clean computer chips. These chips power smartphones and other electronics. The company helps chipmakers build higher-quality hardware.

Building Better Chips

• Cleaning Machines: Systems that use high-frequency sound waves to remove dirt from silicon wafers during manufacturing.
• Plating and Furnaces: Equipment used to add metal layers to chips and apply high heat during production.
• Packaging and Maintenance: Tools that protect finished chips along with ongoing maintenance and spare parts services.

Scaling Up Operations

• Raised $110.2 million in February 2026 by selling shares of ACM Shanghai.
• Launched ACM Chengdu in December 2024 to expand sales and services in mainland China.
• Established ACM-Wooil Microelectronics in June 2023 to develop and produce machine components locally.

The Secret to Cleaning

The company uses specialized high-frequency sound waves to clean wafers without damaging their delicate surfaces. Most production occurs in mainland China, and three major customers provided nearly 46% of revenue in early 2026.

Measuring Performance

• Revenue reached $231.3 million in Q1 2026, up 34.2% from Q1 2025.
• Operating income reached $36.2 million in Q1 2026, up 40.3% year-over-year.
• Net income was $17.3 million in Q1 2026, down 15.1% from the previous year.
• Free cash flow reached negative $51.7 million in Q1 2026, which worsened from negative $11.8 million in Q1 2025.

Evolution of the Business

ACM Research has shifted from a specialized cleaning company to a broader supplier for many stages of chip production. Its growth depends on expanding its tool catalog while serving the expanding semiconductor market in China.