ACM Research (ACMR) Q2 FY26 earnings call: guidance and Q&A

What geographies are seeing larger tool shipments today, and where are the best near-term growth opportunities expected outside China?

Singapore is a key geography for front-end and packaging tools, with significant shipments to a packaging house and a foundry. The U.S. demo lab in Oregon will attract more interest and provide demo capabilities for global customers.

“wherever, almost like close to 100 to go to Singapore, right? One of their packaging house there. Also Evert and running 1 of their foundry in the single to -- so we do see Singapore as an opportunity for front-end tool and also packaging tool there.”

asked by Sujeeva De Silva · answered by David Wang

What are the plans for the $300 million cash in the U.S., including capacity expansion, regional focus, or inorganic activity?

The cash supports expansion outside Mainland China, specifically in the U.S., Taiwan, Singapore, Asia, and Europe, to fund R&D for new products like PCVD and furnace, and to support sales activities.

“those funding basically is supporting our activity definitely U.S. and also Taiwan and Singapore, Asia, also the Europe, it's a bigger opportunity. We see a lot of demand come out for those -- especially for our differential technology, continuing plating and also R&D for the even new PCV and the furnace.”

asked by Charlie Chan · answered by David Wang

How exposed is ACM to the China DRAM market, particularly CXMT, given the strong growth there?

Management did not comment on specific customers but highlighted the overall strong demand and WFE market growth in China, which is a huge market supporting many chip manufacturers. ACM's multiple new products are expected to sustain high growth rates in China and eventually globally.

“I'm really going to comment too much detail with each customer, right? But looking at overall, you look at the Frost and Sullivan their report, right, showed a very strong demand and WFE market grow in China, right?”

asked by Sujeeva De Silva · answered by Mark McKechnie

How are Q3/Q4 revenues shaping up, and why was the OpEx guidance (SG&A as % of revenue) slightly revised down?

Strong H1 orders indicate good Q3/Q4, but execution and supply chain management are key. The full-year revenue growth target of 25-30% remains confident. The OpEx revision was a minor tightening of estimates, not a meaningful change or related to R&D center timing.

“Yes, Charles, there's not a lot to read into that. I mean R&D, we're looking at 16% to 18% G&A, I said 5% to 6% and sales and marketing around 8%. So it's really just tighten up by the estimates now that we're halfway through the year, but not a meaningful change from where we were at the beginning of the year.”

asked by Charlie Chan · answered by Mark McKechnie

Will rising component costs due to shortages impact gross margin, and can ACM pass these costs to customers?

Management does not foresee a significant impact on gross margins due to existing raw material stock and vendor relationships. While some suppliers have delayed shipments, key suppliers have not increased prices, and ACM is not currently repricing.

“We prepare a certain part in the end of last year, right, because we are predicting this year is a very heavy year. So we are certain vendor did something special for us. That will help us right now.”

asked by Donnie Teng · answered by Mark McKechnie