ACM Research's Strategic Expansion into Mature-Node Lithography: A High-Throughput Opportunity in a Resurging Market

The global semiconductor industry is undergoing a quiet but profound transformation. While the race for cutting-edge EUV lithography continues to dominate headlines, the mature-node segment—encompassing processes from 90nm to 28nm—is emerging as a critical battleground for both technological innovation and market share. For ACM Research, a company long associated with wafer cleaning and polishing technologies, the recent launch of its Ultra Lith KrF track system marks a bold foray into this segment. This move, delivered to a leading Chinese logic wafer fab in September 2025, underscores a strategic pivot toward addressing the growing demand for cost-effective, high-throughput lithography solutions in applications ranging from automotive to industrial electronics [1].

The Resurgence of Mature-Node Lithography

Mature-node lithography, particularly Deep Ultraviolet (DUV) technology, remains the backbone of global semiconductor production. According to a report by Junr, DUV systems accounted for 72.5% of the lithography equipment market in 2025, driven by their cost-effectiveness and reliability for legacy chips used in automotive, IoT, and industrial applications [2]. This dominance is unlikely to wane soon, as the industrial integrated circuits market alone is projected to grow at a 6.61% CAGR through 2030, reaching $84.7 billion [3].

China’s role in this resurgence is pivotal. The country’s semiconductor industry, bolstered by state-backed investments and a push for self-reliance, is expanding its domestic production capabilities. In 2025, the 13th Semiconductor Equipment & Core Components & Materials Exhibition (CSEAC) highlighted a 40% year-on-year increase in participation, with over 1,000 exhibitors showcasing tools for both advanced and mature-node manufacturing [4]. For ACM Research, which already serves a significant portion of its customer base in China, this environment presents a unique opportunity to leverage its existing infrastructure and technical expertise.

ACM Research’s Competitive Edge: The Ultra Lith KrF System

ACM’s Ultra Lith KrF track system is a testament to its ability to innovate within the constraints of mature-node requirements. The system, capable of processing over 300 wafers per hour, integrates proprietary technologies such as backside particle removal (BPRV) and wafer-scale outlier inspection (WSOI) to enhance process stability and reduce cross-contamination risks [1]. These features are critical for maintaining yield in high-volume manufacturing, where even minor deviations can lead to significant losses.

The system’s architecture builds upon ACM’s proven ArF track platform, which demonstrated sub-angstrom-level coating uniformity and ASML scanner-aligned CD matching in late 2024 [1]. This continuity in design not only reduces integration costs for customers but also positions ACM as a reliable partner for fabs seeking to upgrade their processes without overhauling their entire infrastructure.

Navigating a Crowded Market

The mature-node lithography market is no stranger to competition. ASML, Nikon, and Canon dominate the landscape, with ASML’s EUV systems setting the benchmark for advanced nodes. However, these leaders have historically focused on high-end applications, leaving a gap in the DUV segment that companies like ACM Research and SMEE are eager to fill.

SMEE, China’s most advanced lithography equipment manufacturer, has struggled to gain traction, holding just 4% of the market share for legacy lithography tools in 2024 [5]. In contrast, ACM’s recent delivery of the Ultra Lith KrF system to a leading Chinese fab signals a more aggressive approach. While specific revenue figures for the system in Q3 2025 remain undisclosed, the company’s Q2 2025 earnings report—showing $215.4 million in revenue and a 25% sequential increase—suggests that its lithography initiatives are already contributing meaningfully to its top line [6].

Revenue Potential and Strategic Positioning

The financial implications of ACM’s expansion are promising. The global lithography equipment market, valued at $29.76 billion in 2025, is expected to grow to $29.8 billion by 2034, driven by demand for both EUV and DUV systems [7]. Within this, the mature-node segment is particularly attractive, as it avoids the high capital expenditures associated with EUV while still meeting the needs of a broad range of applications.

ACM’s focus on China—a market where domestic production is prioritized—further enhances its prospects. The company’s R&D investments, which accounted for 14.5% of sales in Q2 2025, are directed toward refining its KrF and ArF platforms, ensuring they remain competitive against established players [6]. This strategy aligns with broader industry trends, as governments in North America and Europe also incentivize reshoring of semiconductor manufacturing, creating a dual demand for both advanced and mature-node tools.

Conclusion: A Calculated Bet on the Future

ACM Research’s entry into mature-node lithography is more than a product launch—it is a calculated bet on the structural shifts reshaping the semiconductor industry. By combining high-throughput performance with proprietary process control technologies, the Ultra Lith KrF system positions the company to capture a growing share of a market that remains underserved despite its size. While ASML and Nikon will continue to dominate the high end, ACM’s strategic focus on China’s domestic needs and its ability to integrate seamlessly into existing fabrication processes offer a compelling value proposition.

For investors, the key question is not whether ACM can compete with industry giants, but whether it can capitalize on the unique dynamics of the mature-node segment. Given the company’s recent momentum, its alignment with global supply chain trends, and the growing demand for cost-effective lithography solutions, the answer appears increasingly affirmative.

Source:
[1] ACM Research Delivered Its First High-Throughput Ultra Lith KrF Track System [https://www.nasdaq.com/press-release/acm-research-delivered-its-first-high-throughput-ultra-lith-krf-track-system-leading]
[2] Top 10 Lithography Equipment Manufacturers in 2025 [https://www.junr.com.cn/en/junr-blogs/684.html]
[3] Industrial Integrated Circuits Market Size & Share Analysis [https://www.mordorintelligence.com/industry-reports/industrial-integrated-circuits-market]
[4] Semiconductor Equipment & Core Components & Materials Exhibition (CSEAC) 2025 [https://pradeepstechpoints.wordpress.com/category/semiconductors/semiconductor-equipment/]
[5] China Injects Tens of Billions into Chipmaking Tools [https://www.tomshardware.com/tech-industry/semiconductors/china-injects-tens-of-billions-of-dollars-in-chipmaking-tools-but-its-easily-more-than-a-decade-behind-the-market-leaders-heres-why]
[6] ACM Research, Inc. Q2 2025 Earnings Report [https://www.datainsightsmarket.com/companies/ACMR]
[7] Lithography Equipment Market Size, Share & Trends [https://www.fortunebusinessinsights.com/lithography-equipment-market-110434]