Stock Code: 688082
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Short Name: ACMSH
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Categories of investor
relations activities |
☐ Specific object survey
☐ Media interview
☐ Press conference
☐ Site visit
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✓ Analyst meeting
☐ Performance briefing
☐ Roadshow ✓ Others (open conference call) |
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Date
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May 2023
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Venue
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Conference call
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Participants of the
listed company
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Chairman: HUI WANG
General Manager: JIAN WANG
Person in Charge of Financial Matters: LISA YI LU FENG
Board Secretary: MINGZHU LUO
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Summary of investor
relations activities
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I. Company Introduction: Leaders of ACM Research (Shanghai), Inc. (the “Company”) gave
a brief introduction to the Company’s performance and financial position for the first quarter of 2023, and answered questions of concern by the investors.
II. Q&A:
1. The Company’s thermal ALD furnace tool, PECVD and supercritical cleaning equipment newly launched have drawn close
attention of the market. How about the latest progress in ALD and supercritical CO2 cleaning?
A: Our first thermal ALD furnace tool was delivered to the alpha customer last year, and the results have been promising so far. All
technical specifications have met design requirements, and we believe it can closely match or even surpass some of the performance indicators of international leading manufacturers. Overall, the customers seem quite satisfied with the
performance of the company's thermal ALD products.
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The development of our supercritical CO2 cleaning equipment is well underway. We have developed key IP for this technology, which has an
advantage of conserving CO2 raw materials, with an estimated savings of over 40%.
Our Track equipment has already been docked with lithography system at our evaluation
customer site, for which we hope to complete basic processes, including reliability verification, around the end of the year. The PECVD equipment has undergone extensive testing in recent months with satisfactory results. We will continue
to establish close dialogue with customers, and we expect to conduct verification with two to three customers this year.
2. Where will the demand mainly come from if the Company expands downstream resources? Is it from large factories or
second or third-tier factories or some small factories? Which parts support the operation of the Company?
A: Our orders mainly come from existing customers’ demands for memory, foundry and logic. New customers also make certain contribution, and
account for an increased proportion in this year’s sales. While cleaning equipment is constantly expanding its application, copper plating equipment also is increasing its market share. This year, our furnace tool may not contribute as much
to sales as copper plating equipment, but we expect a larger increase in the number of furnace tool customers compared to last year.
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3. What areas does the Company’s cleaning equipment currently cover?
A: Our cleaning equipment covers 90%-95% of the cleaning processes, such as single-wafer cleaning equipment, including frontside, backside,
edge and high-temperature sulfuric acid cleaning. In addition, our 12-inch wafer cleaning has basically covered the front-end, the mid-end and the back-end processes, including low-pressure drying technology for wet bench equipment. The
Company is also the third company to boast low-pressure drying technology besides two major foreign market players in this space. Moreover, we are developing the supercritical CO2 drying technology, which is a crucial drying technology for
future cleaning processes. As such, our cleaning technology can match the types of technologies owned by the three leading foreign cleaning equipment enterprises, with a broad coverage.
4. In terms of downstream demand, which segment, storage or logic, is expected to bring a stronger demand? The Company
has already received its first order from Europe. Are there any potential orders anticipated in the European market for this year? What are the expectations for future European market development?
A: Our efforts will remain as to the development of international markets. We entered the US market last year and the European market this
year. The equipment under the European order is expected to be delivered in the late third quarter or early fourth quarter of this year. At present, we will continue to communicate with research institutes and large factories in Europe. We
believe a successful delivery of the European order this year can enhance the confidence of other European customers, help us open up the European market smoothly, establish our service chain in Europe and better serve European customers.
In the future, we aim to introduce our core differentiated technologies in cleaning equipment, copper plating equipment, and furnace tool, into both the European and US markets.
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5. The Company’s gross margin in the first quarter of this year has significantly increased compared to that in last
year, but the change in revenue structure is not apparent. Please elaborate whether the increase in gross margin is primarily driven by the grow in ECP, furnace and other front-end equipment, or is it mainly due to the higher gross margin
contribution from cleaning equipment and a lower proportion of advanced packaging, resulting in a significant increase in the overall gross margin?
A: The main reason lies in the large proportion of equipment with high gross margin. Looking ahead, we have not changed our gross margin
target in the range of 40%-45%. We believe that our gross margins could improve over the long term if we are successful entering domestic and foreign markets with our newer platforms such as ALD furnace, Track and PECVD which carry higher
gross margins.
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6. How about the sales of TEBO and Tahoe in the Company’s cleaning equipment last year and this year? Additionally,
there seem to be some bottlenecks currently. Are there more application bottlenecks for TEBO compared to before?
A: The advantage in the cleaning technology of TEBO mainly lies in its non-destructive megasonic cleaning which can be applied not only in
logical processes but also in storage processes. In addition, TEBO is also featured by its necessity to be connected to a drying technology. Currently, the two dominant drying technologies, i.e. high-temperature IPA and supercritical CO2,
are both available to us. The combination of TEBO with either of these drying technologies will form a unique pair that is exclusive to the Company. We hope that in the future, we can provide a more advanced solution to Chinese customers,
and the solution can enter the international market after being verified in China.
Tahoe is expected to witness a significant increase in its order volume this year, whose main strength is that compared to single wafer, it
can significantly reduce the use of sulfuric acid, which is of great interest to market customers. This concept can also be extended to other applications, and amounts to be the one of the first significant invention of semiconductor
capital equipment by a Chinese-based development team in the world. We aspire to expand Tahoe not only in the domestic market but also in the international market, so as to contribute to the global semiconductor production process.
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7. Could you please provide insights into the Company’s upcoming product R&D direction with the successive launch
of its new products PECVD and Track equipment?
A: Instead of setting any specific direction for the new equipment in the future, our focus will be on ensuring excellence in the current
product lineup, which includes challenging products such as cleaning, copper plating, furnace, Track and PECVD. Our goal is to become a leading global supplier in the top tier. Therefore,
we will dedicate the next few years to the development and advancement of existing products.
8. What are the changes in the domestic market share of the Company’s copper plating equipment this year and last year?
What is the expected share this year?
A: Currently, our copper plating equipment has entered most domestic manufacturers of semiconductors in China. Similarly, in the packaging
industry, our copper plating products have entered most large packaging manufacturers in China. This year, while aiming at domestic markets, we are also actively expanding overseas markets, promoting equipment to markets such as Korea, the
US and Europe.
9. Will the new coating and developing systems generate any revenue before 2024? How many sets of ArF and KrF tools can
be confirmed based on a monthly capacity of 10,000 mature 12-inch wafers?
A: This year, the main focus for coating and developing systems is put on verification, whose sales and repeat orders are expected to follow
next year. Different manufacturing processes will be subject to different amount of required ArF and KrF, with advanced manufacturing processes requiring more coating cycles. Additionally, regarding the proportion and equipment count, KrF
has the largest quantity and is expected to have the highest count especially in storage and logic sectors in the future. As to the proportion of share in the global semiconductor equipment market, we estimate coater/developer tools to
account for 3-4%.
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