ACM Research Comments on Updated U.S. Export Restrictions
Rhea-AI Summary
ACM Research (NASDAQ: ACMR) addressed recent U.S. export regulation updates affecting semiconductor operations in China. On December 2, 2024, the U.S. Department of Commerce's BIS implemented additional controls on exports to China related to advanced IC products and manufacturing equipment. ACM Shanghai and its subsidiaries in China and Korea were added to the Entity List, while ACM and its direct subsidiaries outside mainland China were not affected.
The company believes the impact on their supply chain and ACM Shanghai's production capabilities will be minimal due to alternative sources. While sales outside China should remain unaffected, the impact on PRC customers will depend on their spending plans under the new regulations. ACM plans to release preliminary 2024 results and 2025 revenue outlook in January.
Positive
- Supply chain impact expected to be minimal due to alternative sources
- Sales and service to customers outside China remain unaffected
- Parent company ACM and non-Chinese subsidiaries not added to Entity List
Negative
- ACM Shanghai and its China/Korea subsidiaries added to U.S. Entity List
- Potential negative impact on sales to Chinese customers
- New export restrictions affecting semiconductor equipment sales to China
News Market Reaction – ACMR
On the day this news was published, ACMR declined 2.18%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
FREMONT, Calif., Dec. 11, 2024 (GLOBE NEWSWIRE) -- ACM Research, Inc. (“ACM”) (NASDAQ: ACMR), a leading supplier of wafer processing solutions for semiconductor and advanced packaging applications, today issued comments regarding recent updates to U.S. export regulations.
On December 2, 2024, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) imposed additional controls on exports to, and transfers within, the People’s Republic of China (“PRC”) relating to advanced integrated circuit (“IC”) products, certain IC manufacturing equipment and technology, and supercomputers associated with artificial intelligence (AI) and advanced computing.
As part of the new regulations, among other updates, ACM Research (Shanghai), Inc. (“ACM Shanghai”) and its operating subsidiaries in China and Korea, were added to the Entity List published by BIS. Neither ACM, nor its direct subsidiaries outside of mainland China, were added to the Entity List. ACM is a Delaware corporation founded in California in 1998 to supply capital equipment developed for the global semiconductor industry. Since 2005, ACM has conducted its business operations principally through its subsidiary, ACM Shanghai, a limited liability corporation organized in the PRC.
Based on public reports, 140 entities with semiconductor operations related to mainland China were added to the Entity List, 120 of which were semiconductor capital equipment suppliers. We note that neither ACM Shanghai nor its subsidiary was notified of any specific wrongdoing that resulted in its addition to the Entity List.
We are assessing the potential impacts to our business and operational plans that may result from the new regulations. We believe the impact to our supply chain and the ability of ACM Shanghai to produce tools in the PRC will be minimized and manageable as a result of having alternative sources and suppliers. We do not anticipate an impact to the ability to sell, deliver and service products to customers outside of the PRC, however the potential impact on sales to our PRC customers will depend, in part, on the effect of the new regulations on their own spending plans.
Consistent with prior years, we expect to issue a press release in January with preliminary results for 2024 and our initial revenue outlook for 2025.
We will continue to focus on technology innovation for the global market and operate in compliance with all applicable laws and regulations. We are confident we can maintain our role as a key supplier of differentiated capital equipment to global customers and protect the interests of partners, employees, and investors as we navigate the ever-evolving geopolitical landscape.
Forward-Looking Statements
Certain statements contained in this press release are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “plans,” “expects,” “believes,” “anticipates,” “designed,” and similar words are intended to identify forward-looking statements. Forward-looking statements are based on ACM management’s current expectations and beliefs and involve a number of risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or implied by the forward-looking statements. A description of certain of these risks, uncertainties and other matters can be found in filings ACM makes with the U.S. Securities and Exchange Commission, all of which are available at www.sec.gov. Because forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and events currently expected by ACM. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ACM undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in its expectations with regard to these forward-looking statements or the occurrence of unanticipated events.
About ACM Research, Inc.
ACM develops, manufactures and sells semiconductor process equipment spanning cleaning, electroplating, stress-free polishing, vertical furnace processes, track, PECVD, and wafer- and panel-level packaging tools, enabling advanced and semi-critical semiconductor device manufacturing. ACM is committed to delivering customized, high-performance, cost-effective process solutions that semiconductor manufacturers can use in numerous manufacturing steps to improve productivity and product yield. For more information, visit www.acmr.com.
© ACM Research, Inc. The ACM Research logo is a trademark of ACM Research, Inc. For convenience, the trademark appears in this press release without ™ symbols, but that practice does not mean ACM will not assert, to the fullest extent under applicable law, its rights to such trademarks. All other trademarks are the property of their respective owners.
For investor and media inquiries, please contact:
| In the United States: | The Blueshirt Group |
| Steven C. Pelayo, CFA | |
| (360) 808-5154 | |
| steven@blueshirtgroup.co | |
| In China: | The Blueshirt Group Asia |
| Gary Dvorchak, CFA | |
| +86 (138) 1079-1480 | |
| gary@blueshirtgroup.co |
FAQ
How will the December 2024 U.S. export restrictions affect ACMR's operations in China?
Which ACMR subsidiaries were added to the U.S. Entity List in December 2024?
Will ACMR's sales to customers outside China be impacted by the new export restrictions?
When will ACMR release its 2024 results and 2025 revenue outlook?
How many semiconductor-related entities were added to the U.S. Entity List in December 2024?
