ACM Research Inc (NASDAQ:ACMR) reported it plans to grow its manufacturing facility in Shanghai to 50,000 square feet, which will comprise clean room space of 18,000 square feet for product assembly and testing. The investment of $1.5 million will establish additional production capability that can result in revenue of more than $250 million. The expansion is anticipated to be completed in Q2 2018.
The manufacturing plant in Shanghai presently spreads on a total of 36,000 sq. ft., with 8,000 sq. ft. of class 10,000 clean room area for product testing and assembly, plus 800 sq. ft. of class I clean room space meant for product demonstration uses. A “class” status for a clean room indicates the count of particles of size 0.5mm or bigger allowed per cubic foot of air.
Dr. David Wang, the Chief Executive Officer and President of ACM Research, reported that they expect fast growth in demand for their industry-major Smart Megasonix cleaning know-hows, and with this assignment are preparing to meet their consumers’ needs for on-time delivery of premium quality tools. This expansion in China places their production in close proximity to a considerable amount of new fab establishment across Asia, enabling them to offer tools to consumers faster and with less transportation risk and cost.
The CEO of ACM Research added that their China-based engineering teams can even better serve consumer needs during installation, acceptance testing and design. This investment further advances ACM as an international leader in their division of semiconductor manufacturing equipment.
ACM develops, sells and manufactures single-wafer wet cleaning equipment for semiconductor manufacturers. They can use these equipments in several manufacturing steps to eliminate contaminants, particles and other random shortcomings, and thereby enhance product yield, in making advanced integrated circuits.
In the last trading session, the stock price of ACM Research gained 0.56% to close the day at $7.20.