ACM Research, Inc. (NASDAQ: ACMR) completed the first deployment of its Ultra Lith BK photoresist hardening system to a leading global display panel manufacturer on November 19 2025. The delivery marks the first customer deployment of the company’s Track series, a line of lithography tools that combine ultraviolet curing uniformity of ±5 % with temperature control of ±0.1 °C across the wafer. The system supports line‑scan, rotary, and hybrid UV‑curing exposure modes, giving customers flexibility to adapt the tool to a range of lithography recipes used in high‑volume display production.
The Ultra Lith BK’s precision specifications are critical for display panel manufacturing, where even minor variations in photoresist hardening can lead to yield loss and defect rates that erode profitability. By delivering a tool that meets industry‑leading uniformity and temperature stability, ACM Research demonstrates that its Track platform can satisfy the stringent process stability and yield requirements of advanced display nodes, opening a new revenue stream beyond its traditional semiconductor wafer‑processing customers.
ACM Research’s Q3 2025 financial results provide context for the significance of the delivery. Revenue rose 32 % year‑over‑year to $269.2 million, driven largely by strong demand in the cleaning segment, which generated $181.6 million. However, gross margin contracted to 42.0 % from 51.4 % in Q3 2024, a decline attributed to a shift in product mix toward lower‑margin segments and inventory provisions. Non‑GAAP earnings per share of $0.36 fell short of the $0.54 consensus, reflecting the margin compression and the company’s focus on scaling new product lines. Cash and equivalents stood at $1.10 billion, bolstered by a private offering from ACM Shanghai, giving the company a solid balance sheet to support further expansion.
Segment‑level analysis shows that the cleaning business remains the company’s largest revenue driver, while the ECP/furnace/other segment contributed $59.9 million and advanced packaging/services/spares added $27.7 million. The mix shift toward the lower‑margin ECP and packaging segments explains part of the margin compression, but the company’s investment in the Track series and the new display panel customer signals a strategic pivot toward higher‑volume, higher‑margin markets. Management expects the new tool to generate incremental revenue as the customer ramps up production, potentially offsetting margin pressure over time.
CEO Dr. David Wang highlighted that demand for ACM Research’s equipment is being driven by AI and data‑center investments, and that the Ultra Lith BK deployment is a key milestone in the company’s broader strategy to diversify beyond semiconductor wafer processing. He noted that the tool’s performance will support future technology nodes and that the company is confident in maintaining profitability while expanding into new markets. The company’s guidance for fiscal 2025 remains a revenue range of $875 million to $925 million, unchanged from the prior guidance, indicating cautious optimism amid ongoing margin pressures.
Geopolitical considerations remain a risk factor, as ACM Research was added to the U.S. Department of Commerce’s Entity List in December 2024, which could affect export controls and supply chain dynamics. Nevertheless, the company’s strong cash position and diversified customer base provide resilience as it navigates these challenges while pursuing growth in the display panel industry.
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