ACM Research (ACMR) Comments on Updated U.S. Export Restrictions

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.

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