ACM Research's Q2 2025: Unraveling Contradictions in Market Growth, Tariffs, and Supply Chain Strategies

Market growth outlook and strategy for 2026, impact of U.S. tariffs on ACM Shanghai's profitability, market outlook and growth expectations, impact of U.S. export controls, and supply chain risks and mitigation are the key contradictions discussed in ACM Research's latest 2025Q2 earnings call.



Revenue and Shipment Growth:
- ACM Research reported revenue of $215 million for Q2 2025, up 25% sequentially and 6% year-on-year.
- Shipments were $206 million, up 32% sequentially, but only 2% year-over-year.
- The strong sequential growth was driven by increased demand and progress across the expanding product portfolio, including tools like STM, Tahoe, and furnace tools.

Product Segmentation and Demand:
- Revenue from single-wafer cleaning, Tahoe, and semi-critical cleaning tools grew 1%, representing 72% of total revenue.
- Revenue from ECP, furnace, and other technologies grew 23%, accounting for 22% of total revenue.
- The demand was driven by the need for advanced packaging solutions, such as ECP tools, and strong customer interest in furnace products.

Expansion in China and Global Markets:
- ACM Shanghai's proposed capital raise targets $620 million, with plans to issue less than 10% of its total shares.
- The long-term revenue target for Mainland China was increased to $2.5 billion from $1.5 billion, based on a revised market size for China WFE and increased market share targets.
- This expansion is supported by a strong global sales and service team and ongoing investment in R&D and sales and marketing.

Investment in R&D and Product Innovation:
- R&D expenses were planned for 14% to 16% of sales for 2025, reflecting increased focus on proprietary R&D programs.
- ACM Research continues to innovate, with new products like the Ultra C wb wet bench tool and panel-level packaging tools expected to contribute to future growth.
- These innovations are aimed at meeting the demands of artificial intelligence transformation and next-generation semiconductor challenges.