Good day, everyone. Thank you for joining us to discuss second quarter 2026 results, which we released before the U.S.

market opened today. The release is available on our website as well as from newswire services.

There is also a supplemental slide deck posted to the investor section of our website that we will reference during our prepared remarks. On the call with me today are CEO, Dr.

David Wang; our CFO, Mark McKechnie; and Lisa Feng, our CFO of our operating subsidiary, ACM Shanghai. Before we continue, please turn to slide 2.

Let me remind you that remarks made during this call may include predictions, estimates, or other information that might be considered forward-looking. These forward-looking statements represent ACM's current judgment for the future.

However, they are subject to risks and uncertainties that could cause actual results to differ materially. Those risks are described under Risk Factors and elsewhere in ACM's filings with the Securities and Exchange Commission.

Please do not place undue reliance on these forward-looking statements, which reflect ACM's opinions only as of the date of this call. ACM is not obliged to update you on any revisions to these forward-looking statements.

Certain financial results that we provide on this call will be on a non-GAAP basis, which excludes stock-based compensation and unrealized gains and losses on short-term investments. For our GAAP results and reconciliation between GAAP and non-GAAP amounts, you should refer to our earnings release, which is posted on the IR section of our website and to slide 22.

Also, unless otherwise noted, the following figures refer to second quarter 2026, and comparisons are with the second quarter 2025. With that, I will now turn the call over to David Wang.

Dave?

Thanks, Steven. Hello, everyone, and welcome to ACM second quarter 2026 earning conference call.

The June quarter marked another period of strong execution for ACM Research. Revenue and shipment increased 36% year-over-year.

Revenue growth was led by our ECP and advanced packaging product category, both of which increased more than 150% year-over-year. This strong performance reflect progress we are making in transforming ACM into a broader multi-product semiconductor equipment company.

In June of this year, third-party research Frost & Sullivan published a report called Global and China Semiconductor Equipment Market Research. They now estimate that global semiconductor equipment market exceeded $140 billion in 2025, and will grow to more than $200 billion by 2029.

They also estimate that mainland China market exceeding $50 billion in 2025, and will grow to more than $80 billion in 2029. To fund our global operation, we have recently strengthening our balance sheet.

ACM now has more than $1 billion of net cash globally. This include approximately $300 million in the U.S.

following our $150 million registered direct offering completed this past May. This financial strength provides a solid foundation to support our mission to become a key supplier of world-class capital equipment to top major product of semiconductors.

We believe AI is driving one of the most significant technology transition the semiconductor industry has experienced in many years. As chip complexity and chip size continue to increase, traditional wafer-level packaging approaching are reaching practical limit, creating demand for entire new manufacture technology across advanced packaging.

ACM predicted a shift from wafer level to panel-level packaging more than 5 years ago, and began investing early in horizontal panel-level plating and other panel-level wet process technology. We believe the market is now coming to us, and has begun to validate those investment.

Today, I'm pleased to announce that we have received order from two advanced packaging customers for our panel-level horizontal plating tool, addressing both 510 by 515 millimeter and the 310 by 310 millimeter panel size. One is a production order from existing customer in mainland China, and the second one is a evaluation system for a new customer in Asia.

We believe ACM will be among the first company to deliver horizontal panel-level plating system to multiple customer across multiple region. Our proprietary horizontal plating architecture is a key differentiate, delivering strong or superior plating uniformity while addressing the demanding process requirement of next-generation AI packaging.

This order are important milestone for what we believe could become a significant long-term growth opportunity. I'm pleased to report today that our order book has been quite strong.

For the first half of 2026, orders increased 100% 105% year-over-year. This is a mix across all product category with a heavier emphasis on some of our new product.

As with prior years, ACM Shanghai plans to release backlog figure as of the September 30 in early October. Thanks to good execution by our operation team, we continue to expect shipment across each of our category to grow faster than revenue.

We remain confident in our growth target for 2026 and beyond. For 2026, we see a healthy backdrop for China WFE as our customer continue to scale their production capacity.

We expect a extra boost for our business from a few product cycle, including our SPM and furnaces, to enable us to outgrowing the China WFE. Beyond this year, we are estimate that our newer platform, including track, PECVD, and horizontal panel-level plating, will proceed for evaluating phase into a commercialization phase, resulting in production orders and drive our growth for years to come.

In summary, we see 2026 as a big year for new product and another year of solid growth for ACM. Now on to our business result.

Please turn to slide 3. Revenue for the second quarter was $293 million, up 36%.

Shipment for the second quarter was $282 million, up 36%. Gross margin was 46%, and operating profit margin was about 19%.

We ended the quarter with a gross cash of $1.4 billion and a net cash of $1.0 billion. Now I will provide detail on product.

Please turn to slide 4. Revenue from single wafer cleaning, Tahoe, and semi-critical cleaning tool was $133 million, down 14%, and represent 45% of revenue.

We believe ACM has built industry's broadest cleaning product portfolio. Our product in this category including SAPS, TEBO, Tahoe, backside clean, solvent clean, bevel clean, scrubber, and wet etcher, and our proprietary single wafer hot SPM technology.

In May, we present our proprietary hot SPM clean technology at 2026 Surface Preparation and Cleaning Conference. This system demonstrate fewer than 15 particles performance at 15 nanometer particle size.

Our proprietary nozzle design prevents acid mist and chemical splashing outside chamber during the hot SPM process, and therefore does not require periodical DI water chamber auto-cleaning. For customer, this means less maintenance, better uptime, and more stable particle performance.

We believe this represent the best performance in the industry. Our SPM platform is well suited for their advanced logic and memory where cleaning requirement are becoming more demanding.

Today, we also announce new capability for our Ultra C Tahoe, expanding it into a broader wet process platform. Tahoe is built on our patented hybrid architecture that combine batch SPM process and single wafer cleaning.

We have added wet etching and morning wafer reclaim application to the Tahoe platform. This integrate multiple process that had previously required a separate standalone tool into one Tahoe platform.

The expanded platform has been adopted by multiple leading semiconductor manufacturers. ACM will continue to drive world-class process performance with a focus on ESG benefit to helping make our advanced semiconductor manufacture more efficient and more sustainable.

We have shipped a handful of our single wafer SPM tool in the first half of this year, and we are on track to ship more than in the second half of this year for more than 20 by end of this year. A reminder, we estimate that SPM represent about one-third of the total cleaning market.

We have had very little revenue today for the SPM tool, and with this major product cycle, we expect our overall cleaning revenue to rebound as our customer qualify the first tool and we grow our repeat shipment. Revenue for ECP, furnace, and other technology grow 168% and represent 44% of the revenue mix.

Growth was driven by momentum on both front and back-end plating tool. In logic device, we are benefit from larger die size and a steady increase from higher interconnect layer counts.

In memory device, we are benefit as HBM packaging demand higher level of DRAM stacking, and thus more and more copper process steps. During the quarter, we shipped our 2,000th electroplating chamber.

This follows our 500th chamber shipment in 2022 and our 1,500th chamber shipment in 2025. This shows how quickly our installed base has grown and how broadly customer are adopting our technology in volume production.

We had a larger contribution from furnace in the quarter, but it's still just a small part of our overall revenue mix. We continue to improve the technology breakthrough across key application, including LPCVD, oxidation, thermal ALD, PECVD, and ultra-high-temperature anneal.

Revenue from advanced packaging, which exclude ECP, but including service and parts, was up 153%. This including coaters, developer, etcher, stripper, scrubber, and vacuum cleaning tool, supporting broader range of our advanced packaging application.

We are particularly pleased with our global progress here with active deployment in Singapore and North America across a range of these tools. We're making good progress with our new track and PECVD platform.

We remain confidence that we have the right approach for our PECVD and track platform, and we have made a significant progress in 2026. Our proprietary one-chamber three-chucks architecture for PECVD performed well in our Lingang mini-lab early this year.

We shipped the second tool to our new customer in Q1, and we anticipate this qualification by year-end. The story is similar to our track platform.

Indeed, our high-throughput KrF track tool is progressing through customer evaluation, and we anticipate production qualification by year-end. We see strong interest in both standalone tools and configure to integrate with scanners.

For both PECVD and track, we are hard at work with development effort with several key customer. We are optimistic that our tool performance can meet or exceed our customer requirement and result in production order in the near future.

Please turn to slide 5. The quarter, we have update our market assumption with the latest WFE data from one report I mentioned earlier.

This result in a $1 billion increase to ACM global SAM to about $22 billion. Please turn to slide 6.

There are no changing to our long-term revenue target of $4 billion. This still based on market share assumption for each of our product category, which gets us to about $2.5 billion from mainland China and $1.5 billion from the global market.

We adjusted some of our assumption based on China WFE now and about $50 billion. We continue to assuming a robust WFE environment over the next several year for the global market.

The magnitude and the timing of our growth will be impact by the overall spending trajectory of our customer and our market share gains. Next, let me providing a update on our production facility.

First on Lingang, please turn to slide 8. The first building is in volume production, and we plan to open the second building later this year.

Together, the two facility can support up to $3 billion in annual output. With our strong order book, we are fortunately to be ready to scale the second facility.

Next, our Oregon facility, please turn to slide 9. In Oregon, we remain on track for a U.S.-based demo center with a multiple tool in world-class cleaning room environment starting later this year.

This is important for our global customer, and we believe it will help us to secure production orders. Our global business is beginning to scale.

As we said last quarter, we expect to have more than 20 tool installed at the customer site outside mainland China by end of this 2026. This including about 10 customer in five country.

It is clear that leading global chipmakers can benefit from our innovative product. Although it is still early day for our global deployment, our engagement are growing, and we are confident that our global sales and the service team will deliver good results.

Now I will providing our outlook for full year 2026. Please turn to slide 10.

Based on our first half performance and improved visibility, we have raised the middle point of our full year revenue guidance. We now expect a full year 2026 revenue of $1.125 billion to $1.175 billion, versus a prior range of $1.08 billion to $1.175 billion.

This new range imply 25% to 30% year-over-year growth. We also expect shipment growth to outpace revenue growth in 2026.

Now let me turn the call over to our CFO, Mark, who will review details of our second quarter result.

Thank you, David, and good day, everyone. Please turn to slide 11.

Unless I note otherwise, I will refer to non-GAAP financial measures, which excludes stock-based compensation, unrealized gain, loss on short-term investments. Reconciliation of these non-GAAP measures to comparable GAAP measures is included in our earnings release.

Also, unless otherwise noted, the following figures refer to the second quarter of 2026, and comparisons are with the second quarter of 2025. I will now provide financial highlights.

Revenue was $292.9 million, up 36%. Revenue for single wafer cleaning, Tahoe, and semi-critical cleaning was $133.0 million, down 14.2%, and represented 45.4% of sales.

David noted this included very little contribution from some of our newer products. As normal, SPM will be reflected first in our shipments, followed by revenue contribution in later quarters.

Revenue for ECP, front-end and packaging, furnace, and other technologies was $128.5 million, up 167.7%, and represented 43.9% of sales. Revenue for advanced packaging, excluding ECP, services, and spares, was $31.4 million, up 153.3%, and represented 10.7% of sales.

We saw a good improvement in our customer concentration. During the first half of 2026, our 10% customer mix has improved to just one customer at 12.7% of our revenue mix.

This compares to three 10% customers representing 49.9% of our mix for the first half of 2025. While this can vary by period, we consider the reduced concentration as positive as it represents a broadening of our customer base.

Total shipments were $281.5 million, up 36.4%. 2026, we expect shipment growth to outpace revenue growth.

Gross margin was 46.0% versus 48.7%. Gross margin was above the midpoint of our long-term target model.

We maintain our 42% to 48% long-term target range, and product mix can cause fluctuations on a quarterly basis. Operating expenses were $78.5 million, up 23.9%.

R&D was 13.9% of sales. Sales and marketing was 7.7%, and G&A was 5.2%.

For 2026, we plan for R&D in the 16% to 18% range, sales and marketing in the 8% range, and G&A in the 5% to 6% range. Operating income was $56.3 million versus $41.5 million.

Operating margin was 19.2% as compared to 19.3%. Income tax expense was $13.5 million versus $1.9 million.

For 2026, we expect our effective tax range in the 10% to 12% range. Net income attributable to ACM Research was $44.5 million versus $37.3 million.

Non-GAAP net income excluded $6.6 million in stock-based compensation expense and the $69.6 million of unrealized gain on short-term investments and its effect on non-controlling interest. Net income per diluted share was 61 cents versus 55 cents.

Now on to the balance sheet and cash flow items. Cash, cash equivalents, restricted cash, and time deposits were $1.36 billion at the end of the second quarter.

Net cash, which excludes short-term and long-term debt, was $1.0 billion. This includes about $300 million of net cash on our U.S.

balance sheet. Total inventory, net, was $783.1 million.

This consisted of raw materials, net, at $406.1 million; work in progress, net, at $89.0 million; finished goods inventory, net, at $287.9 million, which primarily consists of first tools under evaluation at our customer sites, along with finished goods located at ACM's facilities. Cash used by operations was $6.4 million, and capital expenditures were $65.4 million.

For the full year 2026, we continue to expect capital expenditures of about $175 million. That concludes our prepared remarks.

Now let's open the call for any questions that you may have. Operator, please go ahead.

Hi, David. Hi, Mark.

Hi, Lisa. Congratulations on the progress here.

Great diversification going on, it's really good to see. You got it, yep.

David, the global tools shipped, the 200th is a great number. What geographies are you seeing the larger shipments today in, and maybe what geographies do you expect the best growth opportunity near-term in, as you scale out beyond China?

Actually, we see there especially, I want to say, first half this year, we have almost close a dozen tool go to Singapore, right, one of the packaging house there, also have a tool and running in one of the foundry in Singapore, too. We do see Singapore as opportunity for front-end tool and also packaging tool there.

Of course, we do have a customer continue in the U.S., and as I mentioned, we're going to finish the building of our demo lab in Oregon. With that demo lab starting using, we can attract more interest and also attention into our differential technology.

This way, we can providing more of a demo capability for customer in the global.

That's great. Then my second question is, given that you now have a significant amount of cash in the U.S., $300 million, maybe for David or perhaps for Mark, what are some of the planned use of those proceeds?

Is it expanding capacity, which regions, and perhaps even inorganic activity, any color would be helpful there.

Obviously, with this cash preparation, it showed our determination, also our confidence, right, expanding the sales activity outside mainland China. As I mentioned, our long-term goal is still $1.5 billion for the revenue outside China.

That's exactly for that goal, we prepare our funding and also our activity. This funding basically was supporting our activity, definitely U.S., and also Taiwan, and Singapore, Asia, also the Europe, right?

It's a bigger opportunity. We see a lot of demand come out, especially for our differential technology, cleaning, plating, and also we're R&D for the even new PECVD and the furnaces.

It's really exciting. As I mentioned, AI really driving a lot of new demand for the innovation technology.

We believe what we develop in Shanghai can be real spread out to benefit for all the customer globally, right? It's our goal here.

That's very helpful. Then maybe my last question, I know you guys are diversifying your customer base and you have 1 10% customer and focusing on global, but I'm curious in China, how leveraged are you to what's going on with CXMT and the DRAM market?

Understanding AI is a plating play for you and other areas where you're very strong, but the DRAM effort there is growing very strongly. I'm curious how much leverage you have to that opportunity.

I really cannot comment too much detail with each customer, right, but looking at overall, you look for Frost & Sullivan, their report, right, showed very strong demand and WFE market growing in China, right? I want to say China is a bigger market, right, for the all this application, AI including.

It's a huge market there, and therefore they can supporting a lot of chip manufacturer in here. In the same way, they demand a lot of WFE equipment, right?

That we see opportunity here. With ACM, I said we have a real multiple product in the timeline, especially this year, we call our 2026 as a big year for new product come out to market.

All our PECVD, furnace, and track system, we started development from 2000 or 2001 or 2019. In those timeline, we're really focused on the technology, focus on differentiation.

Through the 4, 5 year, our R&D team hard-working, we got some real exciting result. Some of them, obviously, very approaching to the top-tier and performance, and some thing we see even better than top-tier performance, right?

That's really our confidence we can with this new product come out, we can further sustaining or increase our high growth rate and for our revenue in the market China. Of course, those new product, after qualify in China market would be also eventually will sell to the global market.

It's a lot of exciting for next few years. Our revenue will be not only come from cleaning and the copper plating anymore.

New product will join our revenue growth. This will be a very exciting year for next few years.

That's very helpful color, David. Thank you.

Congratulations to you and the team on the strong execution here. Thanks.

Thank you, Suji.

Thanks, Suji.

Hi. Thanks for taking my question.

Maybe the first one, I know that you don't really guide the quarter, but can you kind of walk us through how the Q3, Q4 is shaking up? You have probably a very big beat in Q1 and now in Q2, and I think if I look at the consensus estimates for Q3, Q4, those numbers probably need to come down a little bit.

Wondering if the revenue timing or shipment timing has some change over the course of the last 90 days, and maybe I'll have a follow-up on the pull-out related items. Thank you.

As I mentioned, you're right. We do have the first half year, our PO receiving has been increased 100%, percent, more than 100%, right?

It's a real indication have a real demand and also, large backlog. Some of this tool, obviously, we're going to try to deliver Q3, Q4, and some of the tool probably we're, we're waiting for probably deliver later.

Now we're really try to increase our capacity, and obviously now the components, has been I want to say everybody demand for components, right? There is a little bit constraint for supply there.

We're kind of looking to Q3, Q4 revenue, I think it really how we execution our order manufacturing and also how we qualify ship the, defer the revenue or the tool. I want to say we're still very, positive about our projection for whole year, right?

This is why we are increased our low side, and now we're expecting our whole year revenue, 25% to 30% range. I think we're pretty confidence for this forecast.

Thanks. Maybe another question for Mark.

Mark, I noticed that the range for SG&A as a percent of revenue kind of revised down a little bit compared with the last quarter. I guess, based on your midpoint of your guidance, your overall OpEx may actually come in a little bit lighter than you previously expected.

I'm wondering what is the reason for the slight OpEx cut for this year, because if I recall correctly, one of the reasons you raised the OpEx range, I think at the beginning of the year, was related to the build-out of the R&D lab, R&D center in Lingang, and wondering the OpEx savings relative to what you previously thought, is that related to some of the timing of that R&D center, and any color would be great. Thank you.

Charles, there's not a lot to read into that. R&D, we're looking 16% to 18%; G&A, I said 5% to 6%; and sales and marketing around 8%.

It's really just tightening up by the estimates now that we're halfway through the year, so, but not a meaningful change from where we were at the beginning of the year.

Yeah. All right, thank you.

Yep.

Thank you.

Hi, David, Mark. Congrats for the results.

Can you hear me?

Yes, Jim.

Yes.

Sure.

Obviously

China's manufacturing capacity build is very robust and structural. You also have a very solid product portfolio for WLP and PLP.

Do we have any guidance or expectations for advanced packaging equipment shipment growth rate for this year and next year? Yeah.

We do not put a number, right, for the shipment of this year, but definitely we also because of strong, I want to say, the backlog, and our shipment definitely will grow outgrow our revenue, right? Will be very strong shipment this year.

Again, as I mentioned, also we see the shortage all industry for the some components. Used to be you can buy 4 months, sometimes you have to get probably longer delivery.

Anyway, we're try to managing those supply chain and make sure those components coming on time. That's maybe the one thing I want to say might be impact their whole year shipment.

I still feel this year shipment is still pretty good. I see.

Do we have any order intake guidance, order intake expectations for your advanced packaging equipment for this year? Another question is that for OSAT's every 10k wafer capacity build for 2.5D wafer-level packaging, what's ACMR's content value based on your product offerings at this moment?

I think some equipment companies, they could have this kind of sharing for investors to understand your progress.

Yeah. I don't I don't quite understand the Yeah, maybe ask that again.

Can you say your question again? I'm not getting the last couple sentences.

Can you repeat again?

Sure. For OSAT's for their advanced packaging capacity build such as 2.5D, on their every 10k capacity build, what's the potential contribution to ACMR based on your product offerings?

Do we have any sharings on that?

Yeah. He's just looking at kind of the intensity of when our customers spend on 10,000 wafers per month, how much will that drive our equipment sales?

Go ahead.

I couldn't say there, depend on which line build, right? Maybe let's put this way.

The cleaning market, right, you can see that, I want to say, a covers SAM. A cleaning market today, probably in the whole fab spending occupy 5% to 7%, depends on advanced lab or mature fab.

Looking at really for the future, I want to say, advanced fab going on, cleaning become more and more important. Some people even projecting cleaning to continue market continue to grow.

It might be even come to 10% eventually. Because cleaning become more and more difficult and more of material loss control, particle size get smaller smaller.

Also the drying method become maybe from the IPA to the supercritical CO2 dry. Anyway, I see that market grow, number one.

Second one is a copper plating. It's clearly actually, 4, 5 years ago, we said copper plating to be the $1.5 billion.

That time nobody really believe it, right? Now it's almost $1.5 billion already.

With all the future backside of the power, and HBM, layer of the all DRAM stacking going on, there's a lot of plating tool demand come out, right? More important, this panel market also demand a lot of plating tool, too.

ACM is really pioneer in the panel-level electroplating, right? This probably I want to say this is the first time ACM really stand in the top and for the horizontal plating technology and the market, I want to say offering.

That's really give us a bigger growth potential and for this existing market. Further than that is the furnaces and PECVD track, we see the also big potential there, too.

That's why I want to say ACM in a real good exciting period. We expecting continue growth for cleaning and copper plating, and also with our new product, furnaces, PECVD, track come out, will further reinforce our revenue growth, right?

That's why I said the next few years really very exciting year for our growth.

Thank you, Dr. Wang.

I think for China, I think they are building a lot of CoWoS-like 2.5D advanced packaging capacity. As far as I know, they probably still use a lot of TSMC baseline tool vendors, including wet processing tools and other stuff.

Are we trying to get more market shares, more qualifications here, and how's our progress in China's CoWoS-like 2.5D capacity build?

Yeah. You look in our actually plating grow, right, 156%, and also our packaging tool grow also, right?

It's really showed indication a lot of new demand for 3D packaging, right? This 3D packaging become more and more important and for all the devices, right?

We see that the growth potential here. ACM well-positioned for that with our cleaning and with our coater, developer, with all this PR stripper, right, and also copper plating, right?

It's really a good, I want to say, growth for the 2.5D or 3D packaging, right? Also, I want to say panel also grow, too, right?

Panel-level packaging is another big one. It's very exciting for I see the 3D packaging going on, which is a good for our product.

I think it's quite exciting that we just announced that we have the first PLP ECP tool evaluation system shipped to a customer in Asia. Regarding the progress, when could the evaluation results come out?

Any probability that we could receive the first purchase order from these customers in the next maybe a few quarters or the next 6 to 12 months? Yeah.

Obviously, you mentioned that panel now is very hot, right in all Asia. Looking to mainland China, Taiwan, Korea, and even Singapore, right?

It's very, very hot. Everybody believe that would be the ultimate solution for the large AI chip, all this CoWoS, HBM, whatever packaging in a large chip size.

We do see that the trend. Obviously, we're well-positioned for 515 by 510, which is more large size, as Intel probably pioneer now.

Also we're also positioned for 310 by 310, which is leading by TSMC approach, right? It's a lot of exciting.

I want to say we're prepared for both market.

I see. Thank you so much.

That's all my questions. Thank you.

Thank you. Yep.

Hey guys, it's Ben Taxdahl on for Christian here. Great quarter, exciting stuff going on at ACMR.

My first question is, what is any commentary, any initial commentary, I know it's kind of early, on 2027 visibility? I get new products and strong orders, but anything else or what exactly should we be thinking about for 2027?

Well, 2026, right? I still see that there a lot of fab we see, right, in the local China, is in real still in the multi-year expansion, right?

Clearly this year, we see many fab open, and also we see that there some fab will definitely beyond 2027 and grow. That's a probably market's here, strong, bigger, right?

We're very excited about, even I say this Frost & Sullivan, they give a report, right, by year 2029, their China market beyond $80 billion. That's a really I like that number.

That's exciting, right? Anyway, I want to say it's growing in next few year in the local market here.

We have, obviously, some of our new platforms that could kick in. I would also say some of the orders we get this year, we're not going to be able to support all those this year,

so

that'll kind of flow into next year as well. Yeah, 2027 is starting to shape up pretty, as a good growth year.

Great. Also, as

I mentioned, we made a progress, right, with all the track system, PECVD,

and

we see that those both product take off, and obviously, we're probably will become leading supplier, local supplier and for the track system. I know the PECVD quite a bit competitive there, but our one-chamber three-chuck is a real unique platform, and we see the certain special big market requirement for this PECVD, too.

Anyway, we're both excited about this new product.

Great. Just one other question.

Any update on the Shanghai listing? Or

the Hong Kong, right? Or

sorry, yes. Yep, sorry.

No update.

I can say we really cannot comment too much on Hong Kong listing, right? I can only tell that April timeline we announced we're going to do that, and that's the only information I can tell you right now.

Eventually maybe sometime later in the future, we may disclose more.

Perfect. Thanks, guys.

That's all I got.

No, thanks for asking. Thanks.

Thank you.

Thank you. Thank you, David.

Hi, David, Mark. We talk about component shortage.

There are also a lot of component price hikes. Will rising component costs impact ACMR's gross margin?

If so, on which potential quarters or timeline? What kind of options does your company have to pass these costs to your customers?

Yeah.

Probably this is a global point, right? Looking our supply, probably either I want to say major supply our components from Japan, right, or some in Korea.

Definitely, it's a lot of growing. There's a shortage there.

We see that can happen. Some things we're still switching to the local supplier, and here is looks better.

Anyway, I want to say this is still I looking this year, global component suppliers still tight, right, even some mechanical parts, some slider, even robot, for example. The components, they are hard to get on time.

We see that really booming, right? That's why we have a real managing well in the second half year, make sure our supply catch our demand.

There's really, you kind of take a look at it. No change to our gross margin target, 42% to 48%, we're comfortable where we are.

We have a good amount of raw materials, right, that we've purchased and look, we stocked up on some raw materials, what we have in stock and kind of our outlook, we don't see any significant impact on gross margin.

We prepared certain parts at end of last year, right, because we are predicting this year is a very heavy year. Our vendor did something special for us.

That really help us right now.

The demand is very robust and the supply is quite tight. Is that possible that we could pass in this incremental cost, the rising component costs to our customers, or it's not a key priority of your business?

Yeah. It's hard to tell right now, right?

Probably, we're not raising price right now, this moment, right? Also, our I want to say our vendor supply, not many people raising price.

Some are raising, but not much. The only thing that is their probably delay the shipment, right?

They can tell you maybe used to be send to in 4 months, maybe they do 6 months. That's happened, but they didn't increase their price, our key supplier, no.

I see. My second follow-up question is regarding our manufacturing capacity builds outside of mainland China.

Are we going to build more capacity in the States or in other Asian regions if we receive more international orders?

Yeah. That we do have our manufacture, I want to say, facility and capability in Korea, right?

That's really start to play, and some tool we ship to U.S. will be made actually now is made in Korea right now.

Also some future tool probably shipping to Taiwan and Singapore will be also made probably in Korea, too, right? As also I said, as really more of revenue growing in the U.S.

or in other region, we can also probably prepare a second manufacturing site, too. We're really in that, I want to say, consideration and direction.

All right, I see. Regarding the funding for this kind of manufacturing capacity expansion, would you need to dispose some stakes in ACM Shanghai, or you don't consider that option?

Yeah.

We're pretty comfortable with our balance sheet, right? David mentioned we have $300 million on our U.S.

balance sheet. Part of that was kind of a war chest to show our customers that when we get the production orders, we can support that.

We don't have any near-term plans to scale out of our any more of our Shanghai shares.

No. Thank you so much, David and Mark.

It's very clear. Thank you.

You bet.

Hey, thank you for letting me on. First, congratulations on your new orders, 100%, that's very impressive.

Can I ask in terms of by segment, can you rank which one is the strongest for DRAM, HBM, NAND, and the logic? Thank you.

In terms of our order strength, David, he's asking. We didn't break it out, but David in the prepared remarks mentioned that they were across all of our customer base and across our products.

A little bit stronger in some of our newer products, but we didn't break it out by end markets.

Obviously, we see that strong in memory

and

also strong in logic, right, both.

Okay. Thank you, David, Mark.

Next question is about our cash flows. It looks like we have a very strong tailwind from the industry-wide and also our new product launch is going ahead.

In terms of operating cash flows and buybacks, how should we think about that? Thank you.

I think this year on the cash flow side, we're still obviously heavily in growth mode. We're spending on our CapEx and what have you, but the plan is in growth mode, you make these investments and then we harvest those over the next several years.

This year, we'll probably burn some cash, putting capital to work on our new production facilities, on our facilities outside in Oregon and what have you. Longer-term, obviously it's a positive cash flow operation.

All right. Thank you.

Great. Before we conclude, I just want to give everyone a quick reminder of our upcoming investor conferences.

On August 20th, we will participate in Needham's 7th Annual Virtual Semiconductor and SemiCap 1-on-1 Conference. On August 25th, we will present at the 2026 Jefferies Semiconductor, IT Hardware & Communications Technology Conference at the Four Seasons Hotel in Chicago.

On October 13th, we will present at the 18th Annual CEO Summit Conference in conjunction with SEMICON West in San Francisco. Attendance at these conferences are by invitation only for interested investors.

Please contact your respective sales representatives to register and schedule 1-on-1 meetings with the management team. With that, this concludes the call, and you may now disconnect.