Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 02, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38273 | |
Entity Registrant Name | ACM Research, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3290283 | |
Entity Address, Address Line One | 42307 Osgood Road, Suite I | |
Entity Address, City or Town | Fremont | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94539 | |
City Area Code | 510 | |
Local Phone Number | 445-3700 | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value | |
Trading Symbol | ACMR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001680062 | |
Document Fiscal Year Focus | 2023 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 55,585,984 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 5,021,811 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents (note 2) | $ 207,101 | $ 247,951 |
Restricted cash | 560 | 500 |
Short-term time deposits (note 2) | 75,651 | 70,492 |
Short-term investments (note 15) | 21,844 | 20,209 |
Accounts receivable, net (note 4) | 248,477 | 182,936 |
Inventories, net (note 5) | 507,431 | 393,172 |
Prepaid expenses | 17,540 | 15,607 |
Total current assets | 1,115,894 | 963,806 |
Property, plant and equipment, net (note 6) | 190,882 | 82,875 |
Land use right, net (note 7) | 8,299 | 8,692 |
Operating lease right-of-use assets, net (note 11) | 7,184 | 2,489 |
Intangible assets, net | 2,163 | 1,255 |
Long-term time deposits (note 2) | 43,183 | 101,956 |
Deferred tax assets (note 19) | 16,486 | 6,703 |
Long-term investments (note 14) | 22,306 | 17,459 |
Other long-term assets (note 8) | 3,851 | 50,265 |
Total assets | 1,410,248 | 1,235,500 |
Current liabilities: | ||
Other payables and accrued expenses (note 10) | 80,400 | 52,201 |
Advances from customers | 191,393 | 153,773 |
Current portion of operating lease liabilities (note 11) | 2,876 | 1,382 |
Deferred revenue | 4,747 | 4,174 |
Short-term borrowings (note 9) | 33,911 | 56,004 |
Current portion of long-term borrowings (note 12) | 6,717 | 2,322 |
Income taxes payable (note 19) | 11,061 | 3,469 |
FIN-48 payable (note 19) | 6,487 | 6,686 |
Total current liabilities | 481,951 | 396,214 |
Long-term borrowings (note 12) | 39,753 | 18,687 |
Long-term operating lease liabilities (note 11) | 4,308 | 1,107 |
Other long-term liabilities (note 13) | 6,106 | 7,321 |
Total liabilities | 532,118 | 423,329 |
Commitments and contingencies (note 20) | ||
Equity: | ||
Additional paid-in capital | 620,210 | 604,089 |
Retained earnings | 152,306 | 94,426 |
Statutory surplus reserve (note 22) | 16,881 | 16,881 |
Accumulated other comprehensive loss | (60,354) | (40,546) |
Total ACM Research, Inc. stockholders’ equity | 729,050 | 674,856 |
Non-controlling interests | 149,080 | 137,315 |
Total equity | 878,130 | 812,171 |
Total liabilities and equity | 1,410,248 | 1,235,500 |
Related Party | ||
Current assets: | ||
Other receivables | 1,164 | 3,322 |
Current liabilities: | ||
Accounts payable | 7,684 | 14,468 |
Nonrelated Party | ||
Current assets: | ||
Other receivables | 36,126 | 29,617 |
Current liabilities: | ||
Accounts payable | 136,675 | 101,735 |
Class A Common Stock | ||
Equity: | ||
Common stock | 6 | 5 |
Class B Common Stock | ||
Equity: | ||
Common stock | $ 1 | $ 1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue (note 3) | $ 168,569 | $ 133,709 | $ 387,402 | $ 280,290 |
Cost of revenue (note 16) | 80,055 | 67,742 | 190,263 | 150,480 |
Gross profit | 88,514 | 65,967 | 197,139 | 129,810 |
Operating expenses: | ||||
Sales and marketing | 16,803 | 13,133 | 37,579 | 27,494 |
Research and development | 26,151 | 15,678 | 60,244 | 44,391 |
General and administrative | 12,387 | 5,520 | 26,851 | 15,560 |
Total operating expenses | 55,341 | 34,331 | 124,674 | 87,445 |
Income from operations | 33,173 | 31,636 | 72,465 | 42,365 |
Interest income | 2,152 | 2,016 | 6,283 | 5,965 |
Interest expense | (640) | (419) | (1,984) | (986) |
Realized gain from sale of short-term investments | 656 | 1,136 | 8,569 | 1,136 |
Unrealized loss on short-term investments | (1,319) | (5,281) | (4,428) | (9,562) |
Other income (expense), net | (2,150) | 7,207 | 156 | 9,949 |
Income (loss) from equity method investments | (160) | 1,251 | 3,728 | 1,652 |
Income before income taxes | 31,712 | 37,546 | 84,789 | 50,519 |
Income tax expense (note 19) | (718) | (10,470) | (11,235) | (14,138) |
Net income | 30,994 | 27,076 | 73,554 | 36,381 |
Less: Net income attributable to non-controlling interests | 5,315 | 6,072 | 13,905 | 8,927 |
Net income attributable to ACM Research, Inc. | 25,679 | 21,004 | 59,649 | 27,454 |
Net income available to common stockholders, diluted | 25,218 | 20,683 | 58,311 | 26,989 |
Comprehensive income (loss): | ||||
Net income | 30,994 | 27,076 | 73,554 | 36,381 |
Foreign currency translation adjustment, net of tax | 4,015 | (42,416) | (21,831) | (80,334) |
Comprehensive income (loss) | 35,009 | (15,340) | 51,723 | (43,953) |
Less: Comprehensive income (loss) attributable to non-controlling interests | 7,768 | (1,057) | 11,882 | (4,378) |
Comprehensive income (loss) attributable to ACM Research, Inc. | $ 27,241 | $ (14,283) | $ 39,841 | $ (39,575) |
Net income attributable to ACM Research, Inc. per share of common stock (note 2): | ||||
Basic (in dollars per share) | $ 0.43 | $ 0.35 | $ 0.99 | $ 0.46 |
Diluted (in dollars per share) | $ 0.39 | $ 0.32 | $ 0.90 | $ 0.41 |
Weighted average shares of common stock outstanding used in computing per share amounts (note 2): | ||||
Basic (in shares) | 60,219,218 | 59,360,790 | 59,953,144 | 59,123,895 |
Diluted (in shares) | 65,450,941 | 65,612,665 | 64,834,051 | 65,629,273 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock Common Stock Class A | Common Stock Common Stock Class B | Additional Paid- in Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Statutory Surplus Reserve | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests | |
Beginning balance (in shares) at Dec. 31, 2021 | [1] | 53,608,929 | 5,087,814 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 811,665 | $ 5 | $ 1 | $ 595,045 | $ 63,732 | $ 8,312 | $ 9,109 | $ 135,461 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 36,381 | 27,454 | 8,927 | ||||||||
Foreign currency translation adjustment | (80,334) | (67,029) | (13,305) | ||||||||
Exercise of stock options (in shares) | [1] | 763,584 | |||||||||
Exercise of stock options | 1,150 | 1,150 | |||||||||
Stock-based compensation | 5,236 | 5,236 | |||||||||
Conversion of class B common stock to Class A common stock (in shares) | [1] | 1,002 | (1,002) | ||||||||
Conversion of Class B common stock to Class A common stock | 1,002 | ||||||||||
Ending balance (in shares) at Sep. 30, 2022 | [1] | 54,373,515 | 5,086,812 | ||||||||
Ending balance at Sep. 30, 2022 | 774,098 | $ 5 | $ 1 | 601,431 | 91,186 | 8,312 | (57,920) | 131,083 | |||
Beginning balance (in shares) at Jun. 30, 2022 | 54,141,805 | 5,086,812 | |||||||||
Beginning balance at Jun. 30, 2022 | 787,145 | $ 5 | $ 1 | 599,138 | 70,182 | 8,312 | (22,633) | 132,140 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 27,076 | 21,004 | 6,072 | ||||||||
Foreign currency translation adjustment | (42,416) | (35,287) | (7,129) | ||||||||
Exercise of stock options (in shares) | 231,710 | ||||||||||
Exercise of stock options | 400 | 400 | |||||||||
Stock-based compensation | 1,893 | 1,893 | |||||||||
Ending balance (in shares) at Sep. 30, 2022 | [1] | 54,373,515 | 5,086,812 | ||||||||
Ending balance at Sep. 30, 2022 | 774,098 | $ 5 | $ 1 | 601,431 | 91,186 | 8,312 | (57,920) | 131,083 | |||
Beginning balance (in shares) at Dec. 31, 2022 | 54,655,286 | 5,021,811 | |||||||||
Beginning balance at Dec. 31, 2022 | 812,171 | ||||||||||
Beginning balance at Dec. 31, 2022 | 812,171 | $ (1,769) | $ 5 | $ 1 | 604,089 | 94,426 | $ (1,769) | 16,881 | (40,546) | 137,315 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 73,554 | 59,649 | 13,905 | ||||||||
Foreign currency translation adjustment | (21,831) | (19,808) | (2,023) | ||||||||
Exercise of stock options (in shares) | 919,448 | ||||||||||
Exercise of stock options | 5,290 | $ 1 | 1,455 | 3,834 | |||||||
ACM Shanghai dividend | (3,951) | 0 | (3,951) | ||||||||
Stock-based compensation | 14,666 | 14,666 | |||||||||
Conversion of Class B common stock to Class A common stock | 0 | ||||||||||
Ending balance (in shares) at Sep. 30, 2023 | 55,574,734 | 5,021,811 | |||||||||
Ending balance at Sep. 30, 2023 | 878,130 | ||||||||||
Ending balance at Sep. 30, 2023 | 878,130 | $ 6 | $ 1 | 620,210 | 152,306 | 16,881 | (60,354) | 149,080 | |||
Beginning balance (in shares) at Jun. 30, 2023 | 54,951,490 | 5,021,811 | |||||||||
Beginning balance at Jun. 30, 2023 | 831,775 | $ 5 | $ 1 | 608,865 | 126,627 | 16,881 | (61,916) | 141,312 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 30,994 | 25,679 | 5,315 | ||||||||
Foreign currency translation adjustment | 4,015 | 1,562 | 2,453 | ||||||||
Exercise of stock options (in shares) | 623,244 | ||||||||||
Exercise of stock options | 765 | $ 1 | 764 | ||||||||
Stock-based compensation | 10,581 | 10,581 | |||||||||
Ending balance (in shares) at Sep. 30, 2023 | 55,574,734 | 5,021,811 | |||||||||
Ending balance at Sep. 30, 2023 | 878,130 | ||||||||||
Ending balance at Sep. 30, 2023 | $ 878,130 | $ 6 | $ 1 | $ 620,210 | $ 152,306 | $ 16,881 | $ (60,354) | $ 149,080 | |||
[1] (1) Share numbers as of December 31, 2021 have been adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in March 2022. See Note 2 for details. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 73,554 | $ 36,381 |
Adjustments to reconcile net income from operations to net cash used in operating activities | ||
Non-cash operating lease cost | 2,639 | 2,133 |
Depreciation and amortization | 6,021 | 4,104 |
Gain on disposals of property, plant and equipment | (2) | 0 |
Realized gain on short-term investments | (8,569) | (1,136) |
Income from equity method investments | (3,728) | (1,652) |
Unrealized loss on short-term investments | 4,428 | 9,562 |
Inventory provision | 5,031 | 1,739 |
Provision for credit losses | 1,642 | 0 |
Deferred income taxes | (9,936) | 5,036 |
Stock-based compensation | 14,666 | 5,236 |
Net changes in operating assets and liabilities: | ||
Accounts receivable | (76,243) | (96,840) |
Other receivables | (1,563) | (1,309) |
Inventories | (135,888) | (133,776) |
Advances to related party (note 16) | 2,158 | (2,775) |
Prepaid expenses | (3,188) | (6,387) |
Other long-term assets | 0 | 851 |
Related party accounts payable (note 16) | (6,784) | (1,310) |
Accounts payable | 39,081 | 10,155 |
Advances from customers | 42,340 | 88,888 |
Deferred revenue | 3,753 | 1,731 |
Income taxes payable | 7,739 | 8,337 |
FIN-48 payable | (199) | (228) |
Other payables and accrued expenses | 6,928 | 13,755 |
Other long-term liabilities | (5,997) | (3,892) |
Net cash flow used in operating activities | (42,117) | (61,397) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (49,535) | (20,550) |
Purchase of intangible assets | (1,611) | (1,079) |
Purchase of long-term investments (note 14) | 6,488 | 5,196 |
Purchase of equity investments | (18,109) | 0 |
Purchase of time deposits | (22,930) | (136,576) |
Proceeds from maturity of time deposits | 71,471 | 0 |
Proceeds from selling short-term investments | 19,914 | 4,488 |
Dividend from long-term investments (note 14) | 5,147 | 0 |
Net cash used in investing activities | (2,141) | (158,913) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings | 29,314 | 50,688 |
Repayments of short-term borrowings | (49,730) | (13,694) |
Proceeds from long-term borrowings | 27,860 | 0 |
Repayments of long-term borrowings | (1,770) | (1,708) |
ACM Shanghai dividends | (3,951) | 0 |
Proceeds from exercise of stock options | 5,290 | 1,150 |
Net cash provided by financing activities | 7,013 | 36,436 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,545) | (42,551) |
Net decrease in cash, cash equivalents and restricted cash | (40,790) | (226,425) |
Cash, cash equivalents and restricted cash at beginning of period | 248,451 | 563,067 |
Cash, cash equivalents and restricted cash at end of period | 207,661 | 336,642 |
Supplemental disclosure of cash flow information: | ||
Interest paid, net of capitalized interest | 1,984 | 986 |
Cash paid for income taxes | 16,474 | 182 |
Reconciliation of cash, cash equivalents and restricted cash in condensed consolidated statements of cash flows: | ||
Cash and cash equivalents (note 2) | 207,101 | 336,275 |
Restricted cash | 560 | 367 |
Cash, cash equivalents and restricted cash | 207,661 | 336,642 |
Non-cash financing and investing activities: | ||
Conversion of Class B common stock to Class A common stock | 0 | 1,002 |
Cashless exercise of stock options | 211 | 125 |
Transfer from inventory to property, plant and equipment | 4,379 | 0 |
Purchase property, plant and equipment through accounts payable and other payable | 27,388 | 1,415 |
Transfer of prepayment for property to property, plant and equipment | $ 0 | $ 41,497 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS ACM Research, Inc. (“ACM” or “ACM Research”) and its subsidiaries (collectively with ACM, the “Company”) develop, manufacture and sell single-wafer wet-cleaning equipment used to improve the manufacturing process and yield for advanced integrated chips. The Company markets and sells its single-wafer wet-cleaning equipment, under the brand name "Ultra C," which are based on the Company’s proprietary Space Alternated Phase Shift (“SAPS”) and Timely Energized Bubble Oscillation (“TEBO”) technologies. These tools are designed to remove random defects from a wafer surface efficiently, without damaging the wafer or its features, even at increasingly advanced process nodes. ACM was incorporated in California in 1998, and it initially focused on developing tools for manufacturing process steps involving the integration of ultra low-K materials and copper. The Company’s early efforts focused on stress-free copper-polishing technology, and it sold tools based on that technology in the early 2000s. In 2006, the Company established its operational center in Shanghai in the People’s Republic of China (“mainland China”), where it operates through ACM’s subsidiary, ACM Research (Shanghai), Inc. (“ACM Shanghai”). ACM Shanghai was formed to help establish and build relationships with integrated circuit manufacturers in mainland China, and the Company initially financed its Shanghai operations in part through sales of non-controlling equity interests in ACM Shanghai. In 2007, the Company began to focus its development efforts on single-wafer wet-cleaning solutions for the front-end chip fabrication process. The Company introduced its SAPS megasonic technology, which can be applied in wet wafer cleaning at numerous steps during the chip fabrication process, in 2009. It introduced its TEBO technology, which can be applied at numerous steps during the fabrication of small node two-dimensional conventional and three-dimensional patterned wafers, in March 2016. The Company has designed its equipment models for SAPS and TEBO solutions using a modular configuration that enables it to create a wet-cleaning tool meeting the specific requirements of a customer, while using pre-existing designs for chamber, electrical, chemical delivery and other modules. In August 2018, the Company introduced its Ultra-C Tahoe wafer cleaning tool, which can deliver high cleaning performance with significantly less sulfuric acid than typically consumed by conventional high-temperature single-wafer cleaning tools. Based on its electro-chemical plating (“ECP”) technology, the Company introduced in March 2019 its Ultra ECP AP, or “Advanced Packaging,” tool for bumping, or applying copper, tin and nickel to semiconductor wafers at the die-level, and its Ultra ECP MAP, or “Multi-Anode Partial Plating,” tool to deliver advanced electrochemical copper plating for copper interconnect applications in front-end wafer fabrication processes. In 2022, the Company added two major new product categories with the introduction of the Ultra Pmax™ PECVD and Ultra Track tools. The Company also offers a range of custom-made equipment, including cleaners, coaters and developers, to back-end wafer assembly and packaging factories, principally in mainland China. In 2011, ACM Shanghai formed a wholly-owned subsidiary in mainland China, ACM Research (Wuxi), Inc. (“ACM Wuxi”), to manage sales and service operations. In November 2016, ACM re-domesticated from California to Delaware pursuant to a merger in which ACM Research, Inc., a California corporation, was merged into a newly formed, wholly-owned Delaware subsidiary, also named ACM Research, Inc. In June 2017, ACM formed a wholly-owned subsidiary in Hong Kong, CleanChip Technologies Limited (“CleanChip”), to act on the Company’s behalf in Asian markets outside mainland China by, for example, serving as a trading partner between ACM Shanghai and its customers, procuring raw materials and components, performing sales and marketing activities, and making strategic investments. In August 2017, ACM purchased 18.77% of ACM Shanghai’s equity interests held by Shanghai Science and Technology Venture Capital Co., Ltd. On November 8, 2017, ACM purchased the remaining 18.36% of ACM Shanghai’s equity interests held by third parties, Shanghai Pudong High-Tech Investment Co., Ltd. and Shanghai Zhangjiang Science & Technology Venture Capital Co., Ltd. At December 31, 2017, ACM owned all of the outstanding equity interests of ACM Shanghai, and indirectly through ACM Shanghai, owned all of the outstanding equity interests of ACM Wuxi. In December 2017, ACM formed a wholly-owned subsidiary in the Republic of Korea (“Korea”), ACM Research Korea CO., LTD. (“ACM Korea”), to serve customers based in Korea and perform sales and marketing and research and development (“R&D”) activities for new products and solutions. In March 2019, ACM Shanghai formed a wholly-owned subsidiary in mainland China, ACM Research (Lingang), Inc. ("ACM Lingang") to manage activities related to the addition of future long-term production capacity. ACM Lingang is the English name referred to by its Chinese language name Shengwei Research (Shanghai), Inc. ("ACM Shengwei") in prior filings. ACM Shengwei and ACM Lingang refer to the same entity. In June 2019, CleanChip formed a wholly-owned subsidiary in California, ACM Research (CA), Inc. (“ACM California”), to provide procurement services on behalf of ACM Shanghai. In June 2019, ACM Korea was reorganized as a wholly-owned subsidiary of CleanChip. In June 2019, ACM announced plans to complete a listing (the “STAR Listing”) of shares of ACM Shanghai on the Shanghai Stock Exchange’s Sci-Tech Innovation Board, known as the STAR Market, and a concurrent initial public offering (the “STAR IPO”) of ACM Shanghai shares in mainland China. ACM Shanghai is currently ACM’s primary operating subsidiary, and at the time of announcement, was wholly-owned by ACM. To meet a STAR Listing requirement that it have multiple independent stockholders in mainland China, ACM Shanghai completed private placements of its shares in June and November 2019, following which, as of September 30, 2020, the private placement investors held a total of 8.3% of the outstanding shares of ACM Shanghai and ACM Research held the remaining 91.7%. As part of the STAR Listing process, in June 2020 the ownership interests held by the private investors were reclassified from redeemable non-controlling interests to non-controlling interests as the redemption feature was terminated. In preparation for the STAR IPO, ACM completed a reorganization in December 2019 that included the sale of all of the shares of CleanChip by ACM to ACM Shanghai for $3,500. The reorganization and sale had no impact on ACM’s consolidated financial statements. In August 2021, ACM formed a wholly-owned subsidiary in Singapore, ACM Research (Singapore) PTE, Ltd. (“ACM Singapore”) , to perform sales, marketing, and other business development activities. In November 2021, ACM Shanghai completed its STAR Listing and STAR IPO and its shares began trading on the STAR Market. In the STAR IPO, ACM Shanghai issued 43,355,753 shares, representing 10% of the total 433,557,100 shares outstanding after the issuance. The shares were issued at a public offering price of RMB 85.00 per share, and the net proceeds of the STAR IPO, after issuance costs, totaled $545,512. Upon completion of the STAR IPO, ACM owned 82.5% of the outstanding ACM Shanghai shares. However, in May 2023, ACM's ownership declined to 82.1% due to the exercise of 2,150,309 stock options related to ACM Shanghai shares (note 18). In February 2022, ACM Shanghai formed a wholly-owned subsidiary in mainland China, ACM Research (Beijing), Inc. (“ACM Beijing”) to perform sales, marketing and other business development activities. In March 2022, ACM formed a wholly-owned subsidiary in Korea, Hanguk ACM CO., LTD, to perform business development and other related activities. In March 2022, the Board of Directors of ACM declared a 3-for-1 stock split of Class A and Class B common stock effected in the form of a stock dividend (the “Stock Split”). Each stockholder of record at the close of business on March 16, 2022, received a dividend of two additional shares of Class A common stock for each then-held share of Class A common stock and two additional shares of Class B common stock for each then-held share of Class B common stock, which were distributed after the close of trading on March 23, 2022. Unless otherwise indicated, all share numbers, per share amount, share prices, exercise prices and conversion rates set forth in these notes and the accompanying condensed consolidated financial statements reflect the Stock Split . In June 2023, ACM Shanghai formed a wholly-owned subsidiary in mainland China, Yusheng Micro Semiconductor (Shanghai), Co., Ltd, ("Yusheng Micro") to perform business development activities. In June 2023, Yusheng Micro together with Wooil Flucon Co. (note 14) and a private investor established ACM-Wooil Microelectronics (Shanghai) Co., Ltd, ("ACM-Wooil"), a partially owned subsidiary based in mainland China to develop and produce key components for the semiconductor equipment industry. The Company has direct or i ndirect interests in the follow ing subsidiaries: Effective interest held as at Name of subsidiaries Place and date of incorporation September 30, December 31, ACM Research (Shanghai), Inc. Mainland China, May 2005 82.1 % 82.5 % ACM Research (Wuxi), Inc. Mainland China, July 2011 82.1 % 82.5 % CleanChip Technologies Limited Hong Kong, June 2017 82.1 % 82.5 % ACM Research Korea CO., LTD. Korea, December 2017 82.1 % 82.5 % ACM Research (Lingang), Inc. (1) Mainland China, March 2019 82.1 % 82.5 % ACM Research (CA), Inc. USA, April 2019 82.1 % 82.5 % ACM Research (Cayman), Inc. Cayman Islands, April 2019 100.0 % 100.0 % ACM Research (Singapore) PTE. Ltd. Singapore, August 2021 100.0 % 100.0 % ACM Research (Beijing), Inc. Mainland China,, February 2022 82.1 % 82.5 % Hanguk ACM CO., LTD. Korea, March 2022 100.0 % 100.0 % Yusheng Micro Semiconductor (Shanghai) Co., Ltd Mainland China, June 2023 82.1 % — % ACM-Wooil Microelectronics (Shanghai) Co., Ltd Mainland China, June 2023 59.4 % — % (1)ACM Research (Lingang) Inc. is the English name referred to by its Chinese language name Shengwei Research (Shanghai), Inc. in prior filings. ACM Research (Lingang), Inc. and Shengwei Research (Shanghai), Inc. refer to the same entity. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The Company’s condensed consolidated financial statements include the accounts of ACM and its subsidiaries. ACM’s subsidiaries are those entities in which ACM, directly or indirectly, controls a majority of the voting power. All significant intercompany transactions and balances have been eliminated upon consolidation. The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the historical consolidated financial statements of the Company for the year ended December 31, 2022 included in ACM’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The accompanying condensed consolidated financial statements are unaudited. In the opinion of management, these unaudited condensed consolidated financial statements of the Company reflect all adjustments that are necessary for a fair presentation of the Company’s financial position and results of operations. Such adjustments are of a normal recurring nature, unless otherwise noted. The balance sheet as of September 30, 2023 and the results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for any future period. Common Stock Split Unless otherwise indicated, all prior period share and per share amounts, common stock, other capital information presented in the accompanying financial statements and these notes thereto reflect the impact of the Stock Split (Note 1). Proportional adjustments were also made to outstanding awards under the Company’s stock-based compensation plans. Reclassification Certain prior period balances have been reclassified to conform to the current period presentation in the accompanying notes. These reclassifications did not have a material impact on the previously reported financial statements. Recent Restrictions by U.S. Department of Commerce, Japan and Netherlands for Mainland China-based Semiconductor Producers Substantially all of ACM Shanghai’s customers and a significant portion of its operations are based in mainland China. In 2022, Shanghai Huali Microelectronics Corporation, together with Huahong Semiconductor Ltd., collectively known as The Shanghai Huahong (Group) Company, Ltd., or The Huali Huahong Group, a leading mainland China-based foundry, accounted for 18.2% of our revenue; Semiconductor Manufacturing International Corporation, or SMIC, a leading mainland China-based foundry, accounted for 15.6% of our revenue; and Yangtze Memory Technologies Co., Ltd., or YMTC, a leading mainland China-based memory chip company, together with one of its subsidiaries, accounted for 10.0% of our revenue. In early October 2022 the U.S. government enacted new rules aimed at restricting U.S. support for mainland China’s ability to manufacture advanced semiconductors. The rules include new export license requirements for exports, re-exports or transfers to or within mainland China of additional types of semiconductor manufacturing items, items for use in manufacturing designated types of semiconductor manufacturing equipment in mainland China, and semiconductor manufacturing equipment for use at certain IC manufacturing and development facilities in mainland China. In addition, the U.S. government imposed new restrictions by which U.S. persons anywhere in the world are effectively barred from engaging in certain activities related to the development and production of certain semiconductors at mainland China fabrication facilities meeting specified criteria, even if no items subject to the U.S. Export Administration Regulations (EAR) are involved. These restrictions were later updated to extend to Macau In October 2023, the U.S. government revised and expanded the October 2022 controls with the release of additional rules. While the release primarily clarified the October 2022 regulations, certain changes have the potential to be more significant. In particular, the U.S. government expanded license requirements on additional types of semiconductors, semiconductor manufacturing items, and items for use in manufacturing certain types of semiconductor manufacturing equipment, and also expanded the scope to include additional countries beyond mainland China and Macau. ACM Shanghai has determined that several of its customers have mainland China-based facilities that meet the restricted criteria set out in the October 2022 and October 2023 rules, and has also determined that several of its products, and/or components for its products, may meet the parameters of export control classification numbers, or ECCNs, affected by the restrictions. ACM and ACM Shanghai have implemented modifications to their existing business policies and practices in response to the October 2022 restrictions, including by imposing limitations on the activities of their U.S. persons and undertaking measures in connection with their supply chains more broadly to comply with the new regulations. ACM Shanghai is continuing to assess the impact of the October 2023 changes, together with the October 2022 rules, and will further modify its policies and practices as required to comply with the updates. Based on our ongoing review, we believe these regulations may directly impact ACM Shanghai’s ability to meet its future production plans, or indirectly impact the spending plans of ACM Shanghai’s customer base. ACM may not be able to import, or may face substantial restrictions in importing, certain parts from the United States or parts subject to U.S. export controls from outside the United States to support tool shipments to such facilities, or to be embedded into tools defined by affected ECCNs. ACM and ACM Shanghai believe that as a result of the October 2022 restrictions, several ACM Shanghai customers have significantly reduced production and related capital spending at facilities meeting the restricted advanced node capabilities. In addition, ACM Shanghai has experienced challenges as the companies in its supply chain adapt their policies to the new regulations. These factors had an adverse impact on ACM Shanghai’s shipments and sales for the three and nine months ended September 30, 2023. During the nine months ended September 30, 2023, two prominent exporters of advanced semiconductor manufacturing equipment, the Netherlands and Japan, announced and began to implement plans to join the United States in imposing semiconductor-focused export controls. On May 23, 2023, the Japanese government issued the final amendment to an ordinance implementing new export controls to require licensing for export of certain advanced semiconductor manufacturing equipment, effective as of July 23, 2023. The amendment expands the scope of export controls to prohibit (1) exporting twenty-three additional categories of items relating to semiconductor manufacturing and (2) providing technology relating to manufacturing, development or use of these categories of items, in both cases, without an advance license. While the expanded export controls apply to exports to any jurisdiction, exports to certain jurisdictions, such as the United States, are expected to be permitted by certain types of broad general licenses. However, it remains to be seen whether the Japanese government will authorize any exports of these items to mainland China by a limited general license or specific license, if at all. On June 30, 2023, the Government of the Netherlands published additional export control measures for advanced semiconductor manufacturing equipment. The Regulation on Advanced Semiconductor Manufacturing Equipment took effect on September 1, 2023. From that point on, the export of certain advanced semiconductor manufacturing equipment, as specified in the Annex to the Regulation , has been subject to a national export license authorization requirement by the Dutch Central Import and Export Service. As a result of the new restrictions imposed by the Japanese and Dutch governments, ACM Shanghai and/or several of its customers in mainland China may be impacted by, and required to reduce their production capabilities due to, the lack of, or reduced, ability to source items relating to semiconductor manufacturing from Japan and the Netherlands. See “Part II. Item 1A – Risk Factors – Regulatory Risks – Our ability to sell our tools to customers in mainland China has been impacted, and will likely continue to be materially and adversely impacted, by export license requirements, other regulatory changes, or other actions taken by the U.S. or other governmental agencies” for more information. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet date and the reported revenues and expenses during the reported period in the condensed consolidated financial statements and accompanying notes. The Company’s significant accounting estimates and assumptions include, but are not limited to, those used for revenue recognition and deferred revenue, the valuation and recognition of fair value of certain short-term investments, stock-based compensation arrangements, realization of deferred tax assets, assessment for impairment of long-lived assets and long-term investments, allowance for credit losses, inventory valuation, useful lives of property, plant and equipment and useful lives of intangible assets. Management evaluates these estimates and assumptions on a regular basis. Actual results could differ from those estimates and assumptions. Revenue Recognition The Company derives revenue principally from the sale of semiconductor capital equipment, or tools, used for the fabrication of integrated semiconductor circuits. The Company recognizes revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services by following a five-step process: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when, or as, a performance obligation is satisfied. Identify the contract(s) with a customer. The Company generally considers written documentation including, but not limited to, signed purchase orders, master agreements, and sales orders as contracts, provided it has approval and commitment from the customer, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collection is probable. Collectability is assessed based on management’s assessment of the customer’s creditworthiness, historical payment experience, as well as other relevant factors. Identify the performance obligations in the contract. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. The Company’s performance obligations generally include sales of tools and spare parts. In addition, customer contracts can contain provisions for installation, training, software updates, most-favored pricing for spare parts, and other items which have been deemed immaterial in the context of the contract. Determine the transaction price. The transaction price for the Company’s contracts with customers may include fixed and variable consideration. The Company includes variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur in the future based on the Company’s historical experience with similar arrangements. Allocate the transaction price to the performance obligations in the contract. For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. The Company defers revenue associated with spare parts, sold together with its tools, based on its stand-alone observable selling prices or using an expected cost-plus-margin approach when a stand-alone selling price is not directly observable, and recognizes revenue upon subsequent delivery. Recognize revenue when, or as, a performance obligation is satisfied . The Company recognizes revenue from tools and spare parts at a point in time, when the Company has satisfied its performance obligation. The Company’s sales arrangements do not include a general right of return. For shipments made to a customer that has not previously accepted a specific type of tool (“first tools”), revenues are recognized when the goods are accepted by the customer. For shipments made to a customer that has previously accepted a specific type of tool, revenues are recognized upon shipment or delivery because the Company can objectively demonstrate that the goods meet all the required customer specifications. The Company’s warranties provide assurance that its products will function as expected and in accordance with certain specifications. The Company’s warranties are intended to safeguard the customer against existing defects and do not provide any incremental service to the customer. They are not separate performance obligations and are accounted for under ASC 460, Guarantees . Contract liabilities include payments received from customers prior to the transfer of control of certain goods which are recorded as advances from customers, and spare parts sold together with its tools which are recorded as deferred revenue. The Company does not have contract assets. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, bank deposits that are unrestricted as to withdrawal and use, and highly liquid investments with an original maturity date of three months or less at the date of purchase. At times, cash deposits may exceed government-insured limits. The following table presents cash and cash equivalents, according to jurisdiction as of September 30, 2023 and December 31, 2022: September 30, December 31, United States $ 36,251 $ 25,011 Mainland China 109,992 129,695 China Hong Kong 56,731 89,187 Korea 4,060 4,007 Singapore 67 51 Total $ 207,101 $ 247,951 The amounts in mainland China do not include short-term and long-term time deposits which totaled $118,834 and $172,448 at September 30, 2023 and December 31, 2022, respectively. Cash held in the U.S. exceeds the Federal Deposit Insurance Corporation insurance limits and is subject to risk of loss. No losses have been experienced to date. Cash amounts held in mainland China are subject to a series of risk control regulatory standards from mainland China bank regulatory authorities. ACM’s subsidiaries in mainland China are required to obtain approval from the State Administration of Foreign Exchange (“SAFE”) to transfer funds into or out of mainland China. SAFE requires a valid agreement to approve the transfers, which are processed through a bank. Other than these mainland China foreign exchange restrictions, ACM’s subsidiaries in mainland China are not subject to any restrictions and limitations on its ability to transfer funds to ACM or among our other subsidiaries. However, cash held in mainland China does exceed applicable insurance limits and is subject to risk of loss, although no such losses have been experienced to date. ACM California periodically procures goods and services on behalf of ACM Shanghai. For these transactions, ACM Shanghai makes cash payments to ACM California in accordance with applicable transfer pricing arrangements. For the three and nine months ended September 30, 2023, cash payments from ACM Shanghai to ACM California for the procurement of goods and services were $10,724 and $35,195, respectively. For the three and nine months ended September 30, 2022, cash payments from ACM Shanghai to ACM California for the procurement of goods and services were $12,682 and $24,631, respectively. ACM California periodically borrows funds for working capital advances from its direct parent, CleanChip. ACM California repays or renews these intercompany loans in accordance with their terms. For sales through CleanChip and ACM Research, a certain amount of sales or advanced payments from customers is repatriated back to ACM Shanghai in accordance with applicable transfer pricing arrangements in the ordinary course of business. ACM Research provides services to certain customers located in the U.S., Europe and other regions outside of mainland China to support the evaluation of first tools and provide support for tools under warranty on behalf of ACM Shanghai. For these transactions, ACM Shanghai makes cash payments to ACM Research in accordance with applicable transfer pricing arrangements. Subsequent to June 30, 2020, with the exception of sales and services-related transfer-pricing payments in the ordinary course of business, and dividends paid by ACM Shanghai to ACM Research, no cash transfers or other payments or distributions have been made between ACM Research and ACM Shanghai. ACM Research intends to retain any future earnings to finance the operations and expenses of the business, and does not expect to distribute earnings or declare or pay any dividends to holders of ACM Research Class A common stock in the foreseeable future. Amounts held in Korea exceed the Korea Deposit Insurance Corporation insurance limits and is subject to risk of loss. No losses have been experienced to date. There is no additional restriction for the transfer of cash from bank accounts in the U.S., Korea, Singapore and Hong Kong. For the three and nine months ended September 30, 2023 and 2022, with the exception of sales and services-related transfer-pricing payments in the ordinary course of business, and dividends paid by ACM Shanghai to ACM Research, no transfers, or distributions have been made between ACM Research and its subsidiaries, including ACM Shanghai, or to holders of ACM Research Class A common stock. Time Deposits Time deposits are deposited with banks in mainland China with fixed terms and interest rates which cannot be withdrawn before maturity, and are presented as short-term deposits and long-term deposits in the condensed consolidated financial statements based on their expected time of collection. They are also subject to the risk control regulatory standards described above upon maturity. At September 30, 2023 and December 31, 2022, time deposits consisted of the following: September 30, December 31, Deposit in China Merchant Bank which matured on January 29, 2023 with an annual interest rate of 2.25% $ — $ 38,772 Deposit in China Everbright Bank which matured on January 29, 2023 with an annual interest rate of 2.25% $ — $ 14,360 Deposit in China Everbright Bank which matured on May 22, 2023 with an annual interest rate of 5.07% $ — $ 3,000 Deposit in China Industrial Bank which matured on January 30, 2023 with an annual interest rate of 2.15% $ — $ 14,360 Deposit in China Merchant Bank which matures on January 29, 2024 with an annual interest rate of 2.85% $ 27,860 $ 28,720 Deposit in Bank of Ningbo which matures on February 17, 2024 with an annual interest rate of 2.85% $ 41,790 $ 43,080 Deposit in Shanghai Pudong Development Bank which matures on October 20, 2025 with an annual interest rate of 3.10% $ 6,965 $ 7,180 Deposit in Shanghai Pudong Development Bank which matures on November 14, 2025 with an annual interest rate of 3.10% $ 6,965 $ 7,180 Deposit in Shanghai Pudong Development Bank which matures on December 8, 2025 with an annual interest rate of 3.10% $ 4,179 $ 4,308 Deposit in Shanghai Pudong Development Bank which matures on December 15, 2025 with an annual interest rate of 3.10% $ 4,179 $ 4,308 Deposit in Shanghai Pudong Development Bank which matures on December 30, 2025 with an annual interest rate of 3.10% $ 6,965 $ 7,180 Deposit in China Industrial Bank which matures on January 30, 2026 with an annual interest rate of 3.15% $ 13,930 $ — Deposit in China Everbright Bank which matures on November 22, 2023 with an annual interest rate of 5.43% $ 3,000 $ — Deposit in China Everbright Bank which matures on January 5, 2024 with an annual interest rate of 5.38% $ 3,001 $ — $ 118,834 $ 172,448 For the three months ended September 30, 2023 and 2022, interest income related to time deposits was $867 and $929, respectively. For the nine months ended September 30, 2023 and 2022, interest income related to time deposits was $2,779 and $2,468, respectively. Financial Instruments The Company periodically invests in equity securities, and maintains an investment portfolio of various holdings, types, and maturities. For equity investments that do not have a readily determinable fair value, the Company classified them as long-term investments, and records them using either: 1) the measurement alternative which measures the equity investments at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes; or 2) the equity method whereby the Company recognizes its proportional share of the income or loss from the equity method investment. The equity method is utilized when the equity investments are common stock or in substance common stock, and the Company does not have the ability to control the investee but is deemed to have the ability to exercise significant influence over the investee’s operating or financial policies. For equity investments that have a readily determinable fair value, the Company classified them as short-term investments, and records them at fair market value on a recurring basis based upon quoted market prices. Realized and unrealized gains and losses resulting from application of the measurement alternative, the impact of the application of the equity method to the Company’s equity investments, and recognition of changes in fair market value, as applicable, are recognized as non-operating income (expenses), net in the co ndensed consolidated statements of operations and comprehensive income (loss). The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value. The level of an asset or liability in the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities with sufficient volume and frequency of transactions. Level 2: Valuations based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active for identical assets or liabilities, or model-derived valuations techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Valuations based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities and based on non-binding, broker-provided price quotes and may not have been corroborated by observable market data. Assets and liabilities measured at fair value on a recurring basis: Quoted Prices in Active Markets for Identical Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total As of September 30, 2023: Assets Cash and cash equivalents $ 207,101 $ — $ — $ 207,101 Short-term investments 21,844 — — 21,844 $ 228,945 $ — $ — $ 228,945 As of December 31, 2022: Assets Cash and cash equivalents $ 247,951 $ — $ — $ 247,951 Short-term investments 20,209 — — 20,209 $ 268,160 $ — $ — $ 268,160 The Company did not have any assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2023 and December 30, 2022. Refer to Note 12 for fair value information related to the Company’s outstanding long-term borrowings as of September 30, 2023 and December 31, 2022. Basic and Diluted Net Income per Share of Common Stock Basic and diluted net income per share of common stock are calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 30,994 $ 27,076 $ 73,554 $ 36,381 Less: Net income attributable to non-controlling interests 5,315 6,072 13,905 8,927 Net income available to common stockholders, basic $ 25,679 $ 21,004 $ 59,649 $ 27,454 Less: Dilutive effect arising from stock-based awards by ACM Shanghai 461 321 1,338 465 Net income available to common stockholders, diluted $ 25,218 $ 20,683 $ 58,311 $ 26,989 Weighted average shares outstanding, basic 60,219,218 59,360,790 59,953,144 59,123,895 Effect of dilutive securities 5,231,723 6,251,875 4,880,907 6,505,378 Weighted average shares outstanding, diluted 65,450,941 65,612,665 64,834,051 65,629,273 Net income per share of common stock: Basic $ 0.43 $ 0.35 $ 0.99 $ 0.46 Diluted $ 0.39 $ 0.32 $ 0.90 $ 0.41 ACM Research has been authorized to issue Class A and Class B common stock since redomesticating in Delaware in November 2016. The two classes of common stock are substantially identical in all material respects, except for voting rights. Since ACM Research did not declare any cash dividends during the three and nine months ended September 30, 2023 or 2022, the net income per share of common stock attributable to each class is the same under the “two-class” method. As such, the two classes of common stock have been presented on a combined basis in the condensed consolidated statements of operations and comprehensive income (loss) and in the above computation of net income per share of common stock. Diluted net income per share of common stock reflects the potential dilution from securities, such as stock options that could share in ACM Research’s earnings. Certain potential dilutive securities were excluded from the net income per share calculation because the impact would be anti-dilutive. ACM Research’s potential dilutive securities consist of 1,757,605 and 4,099,228 stock options for the three and nine months ended September 30, 2023 and 1,993,050 and 1,897,050 stock options for the three and nine months ended September 30, 2022. Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents, time deposits, and accounts receivable. The Company deposits and invests its cash and cash equivalents and time deposits with financial institutions that management believes are creditworthy. The Company is potentially subject to concentrations of credit risks in its accounts receivable and revenue. For the three months ended September 30, 2023 and 2022, two customers accounted for 53.2% and three customers accounted for 61.4% of revenue, respectively. For the nine months ended September 30, 2023 and 2022, three customers accounted for 48.8% and three customers accounted for 50.1% of revenue, respectively. As of September 30, 2023 and December 31, 2022, three customers accounted for 46.1% and two customers accounted for 42.6%, respectively, of the Company’s accounts receivables. The Company believes that the receivable balances from these largest customers do not represent a significant credit risk based on past collection experience. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”). ASC 326 replaced the pre-existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASC 326 requires use of a forward-looking expected credit loss model for accounts receivables, loans and other financial instruments. In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. ASU 2019-10 defers the effective date of ASU 2016-13 for public filers that are considered small reporting companies (“SRC”) as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company was eligible to be a SRC based on its SRC determination as of November 15, 2019 (which was the issuance date of ASU 2019-10) in accordance with SEC regulations, the Company adopted amendments in ASC 326 for the year beginning January 1, 2023. Adoption of the standard requires using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align existing credit loss methodology with the new standard. The cumulative-effect adjustment, net of tax impact, to retained earnings as of January 1, 2023 was $(1,769). In June 2022, the FASB issued ASU 2022-03— Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”) which clarifies how the fair values of equity securities subject to contractual sale restrictions is determined (Topic 820). The amendment clarifies that a contractual sale restriction should not be considered in measuring fair value. It also requires certain qualitative and quantitative disclosures related to equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Company for fiscal year beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. The Company early adopted ASU 2022-03 in the third quarter of 2023, and the adoption did not have a material impact on the Company’s financial position, results of operations and cash flows. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company assesses revenues based upon the nature or type of goods or services it provides and the geographic location of the related businesses. The following tables present disaggregated revenue information: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Single wafer cleaning, Tahoe and semi-critical cleaning equipment $ 132,417 $ 99,720 $ 281,559 $ 198,336 ECP (front-end and packaging), furnace and other technologies 25,508 24,521 71,223 57,269 Advanced packaging (excluding ECP), services & spares 10,644 9,468 34,620 24,685 Total Revenue By Product Category $ 168,569 $ 133,709 $ 387,402 $ 280,290 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Mainland China $ 168,302 $ 131,180 $ 375,528 $ 273,585 Other regions 267 2,529 11,874 6,705 $ 168,569 $ 133,709 $ 387,402 $ 280,290 Below are the accounts receivables and contract liabilities balances as of: September 30, December 31, Accounts receivable $ 248,477 $ 182,936 Advances from customers 191,393 153,773 Deferred revenue 4,747 4,174 During the nine months ended September 30, 2023, advances from customers increased by $37.6 million, due to an increase of payments made by customers for first tools under evaluation, and an increase in customer pre-payments for tools prior to delivery. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE At September 30, 2023 and December 31, 2022, accounts receivable, net consisted of the following: September 30, December 31, Accounts receivable $ 252,198 $ 182,936 Less: Allowance for credit losses (3,721) - $ 248,477 $ 182,936 September 30, Cumulative effect of change in accounting principle under ASC 326, before tax, as of January 1, 2023 $ (2,099) Provision for credit loss expense (1,622) Allowance for credit losses, before tax, as of September 30, 2023 $ (3,721) The $65.5 million increase in accounts receivable for the first nine months of 2023 corresponds to a $107.1 million increase in revenue as compared to the same period in 2022. The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when the Company identifies specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due status, the age of the accounts receivable balances, credit quality of the Company’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Company’s ability to collect from customers. As a result of the Company’s adoption of ASC 326 as of January 1, 2023 (Note 2), the Company recorded an allowance for credit losses as of September 30, 2023, as compared to no allowance for credit losses as of December 31, 2022. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES At September 30, 2023 and December 31, 2022, inventories, net consisted of the following: September 30, December 31, Raw materials $ 202,048 $ 167,135 Work-in-process 83,386 79,126 Finished goods 221,997 146,911 Total inventory $ 507,431 $ 393,172 Inventories are stated at the lower of cost or net realizable value on a moving weighted average basis. At September 30, 2023 and December 31, 2022, the value of finished goods inventory of which were first-tools at customer physical locations for which customers were contractually obligated to take ownership upon acceptance totaled $140,788 and $123,169, respectively. At September 30, 2023 and December 31, 2022, the value of finished goods inventory of which were first-tools in warehouse but not delivered to customers for which customers were contractually obligated to take ownership upon acceptance totaled $38,763 and $0, respectively. The $39.2 million increase in raw materials and work-in-process inventory at September 30, 2023 compared to December 31, 2022 was due to additional purchase of supplies to support a higher level of expected shipments for the next several quarters, and to reduce the risk of supply chain delays to meet anticipated customer demand for the Company’s products. The $75.1 million increase in finished goods inventory at September 30, 2023 compared to December 31, 2022 reflects an increase in completed tools not yet shipped to the customer, and a higher value of first-tools that have been shipped but have not been accepted by the customers. The Company’s products each require a certain degree of customization, and the substantial majority of the work-in-process inventory and finished goods inventory is built to meet a specific customer order for a repeat shipment or a first tool shipment. At the end of each period, the Company assesses the status of each item in work-in-process and finished goods inventory. The Company recognizes a loss or impairment if in management’s judgement the inventory cannot be sold or used for production, if it has been damaged or should be considered as obsolete, or if the net realizable value is lower than the cost. At the end of each period, the Company also assesses the status of its raw materials. The Company recognizes a loss or impairment for any raw materials aged more than three years. The three-year aging is based on the Company’s assessment of technology change, its requirement to maintain stock for warranty coverage, and other factors. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | PROPERTY, PLANT AND EQUIPMENT, NET At September 30, 2023 and December 31, 2022, property, plant and equipment consisted of the following: September 30, December 31, Buildings and plants $ 81,991 $ 35,864 Manufacturing equipment 18,714 9,298 Office equipment 4,646 3,691 Transportation equipment 397 407 Leasehold improvement 7,684 7,173 Total cost 113,432 56,433 Less: Total accumulated depreciation and amortization (15,123) (10,047) Construction in progress 92,573 36,489 Total property, plant and equipment, net $ 190,882 $ 82,875 Depreciation and amortization expense for the three months ended September 30, 2023 and 2022 was $2,023 and $897 respectively, and $5,077 and $3,281 for the nine months ended September 30, 2023 and 2022, respectively. Buildings and plants represent Lingang housing property owned by ACM Shengwei at a value of RMB 263,979 ($34,790) as of September 30, 2023, and facilities for the new headquarters of ACM Shanghai ("Zhangjiang New Building") at a value of RMB 338,848 ($47,201) as of September 30, 2023. As of September 30, 2023, ACM Shanghai is in the process of obtaining property ownership certificate for Zhangjiang New Building. The Lingang housing property is pledged as security for loans from China Merchants Bank (Note 12). Construction in progress primarily reflects costs incurred related to the construction of ACM Shanghai’s Lingang development and production center . |
LAND USE RIGHT, NET
LAND USE RIGHT, NET | 9 Months Ended |
Sep. 30, 2023 | |
Land Use Right, Net [Abstract] | |
LAND USE RIGHT, NET | LAND USE RIGHT, NET A summary of land use right is as follows: September 30, December 31, Land use right purchase amount $ 8,875 $ 9,149 Less: accumulated amortization (576) (457) Land use right, net $ 8,299 $ 8,692 In 2020, ACM Shanghai, through its wholly-owned subsidiary ACM Lingang, entered into an agreement for a 50-year land use right in the Lingang region of Shanghai. In July 2020, ACM Lingang began a multi-year construction project for a new 1,000,000 square foot development and production center that will incorporate new manufacturing systems and automation technologies and will provide floor space to support significantly increased production capacity and related research and development activities. The amortization for the three months ended September 30, 2023 and 2022 was $44 and $45, respectively, and for the nine months ended September 30, 2023 and 2022 was $136 and $144, r espectively. The annual amortization of land use right is as follows: Year ending December 31, Remainder of 2023 $ 44 2024 178 2025 178 2026 178 2027 178 2028 178 2029 and thereafter 7,365 Total $ 8,299 |
OTHER LONG-TERM ASSETS
OTHER LONG-TERM ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
OTHER LONG-TERM ASSETS | OTHER LONG-TERM ASSETS At September 30, 2023 and December 31, 2022, other long-term assets consisted of the following: September 30, December 31, Prepayment for property, plant and equipment $ 1,286 $ 704 Lease deposit 796 393 Security deposit for land use right 687 708 Prepayment for property - Zhangjiang New Building — 47,251 Others 1,082 1,209 Total other long-term assets $ 3,851 $ 50,265 Prepayment for property - Zhangjiang New Building is for the new corporate headquarters of ACM Shanghai. Pursuant to contractual agreements, ownership of Zhangjiang New Building was transferred to ACM Shanghai in February 2023 at value of RMB 338,848 ($47,201). Upon the transfer of ownership, Prepayment for property - Zhangjiang New Building was reclassified to property, plant and equipment (Note 6). |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | SHORT-TERM BORROWINGS At September 30, 2023 and December 31, 2022, s hort-term borrowings consisted of the following: September 30, December 31, Line of credit up to RMB 150,000 from China Everbright Bank, 1)due on August 17, 2023 with an annual interest rate of 3.40% $ - $ 8,616 2)due on September 1, 2023 with an annual interest rate of 3.60% - 8,616 3)due on December 16, 2023 with an annual interest rate of 3.00% 4,179 4,308 4)due on August 29, 2024 with an annual interest rate of 3.00% 2,429 - Line of credit up to RMB 100,000 from Bank of Communications, 1)due on August 11, 2023 with an annual interest rate of 3.60% - 8,616 2)due on September 5, 2023 with an annual interest rate of 3.50% - 5,744 Line of credit up to RMB 40,000 from Bank of China, 1)due on August 26, 2023 with an annual interest rate of 3.15%. - 5,744 Line of credit up to RMB 40,000 from Bank of China, 1)due on September 6, 2024 with an annual interest rate of 2.87% 5,572 - Line of credit up to RMB 100,000 from China Merchants Bank, 1)due on July 21, 2023 with an annual interest rate of 3.50%. - 1,292 2)due on July 27, 2023 with an annual interest rate of 3.50%. - 1,292 3)due on August 1, 2023 with an annual interest rate of 3.50%. - 1,292 4)due on August 3, 2023 with an annual interest rate of 3.50%. - 1,292 5)due on August 7, 2023 with an annual interest rate of 3.50%. - 1,293 6)due on August 14, 2023 with an annual interest rate of 3.50%. - 1,293 7)due on August 15, 2023 with an annual interest rate of 3.50%. - 1,293 8)due on August 21, 2023 with an annual interest rate of 3.50%. - 1,005 9)due on August 28, 2023 with an annual interest rate of 3.50%. - 1,292 10)due on September 13, 2023 with an annual interest rate of 3.50%. - 1,292 11)due on September 20, 2023 with an annual interest rate of 3.50%. - 1,293 12)due on October 7, 2023 with an annual interest rate of 3.50% 418 431 Line of credit up to RMB 200,000 from China Merchants Bank, 1)due on August 7, 2024 with an annual interest rate of 3.00%. 1,254 - - 2)due on August 8, 2024 with an annual interest rate of 3.00%. 1,254 - 3)due on August 9, 2024 with an annual interest rate of 3.00%. 1,254 - 4)due on August 14, 2024 with an annual interest rate of 3.00%. 1,254 - 5)due on August 17, 2024 with an annual interest rate of 3.00%. 1,254 - 6)due on August 20, 2024 with an annual interest rate of 3.00%. 1,254 - 7)due on August 21, 2024 with an annual interest rate of 3.00%. 1,254 - 8)due on August 22, 2024 with an annual interest rate of 3.00%. 1,254 - 9)due on August 24, 2024 with an annual interest rate of 3.00%. 1,254 - 10)due on August 27, 2024 with an annual interest rate of 3.00%. 1,254 - 11)due on August 29, 2024 with an annual interest rate of 3.00%. 1,254 - 12)due on August 30, 2024 with an annual interest rate of 3.00%. 1,254 - 13)due on September 3, 2024 with an annual interest rate of 3.00%. 1,253 - 14)due on September 5, 2024 with an annual interest rate of 3.00%. 1,253 - 15)due on September 6, 2024 with an annual interest rate of 3.00%. 1,253 - 16)due on September 10, 2024 with an annual interest rate of 3.00%. 1,253 - 17)due on September 12, 2024 with an annual interest rate of 3.00%. 1,253 - Total $ 33,911 $ 56,004 For the three months ended September 30, 2023 and 2022, interest expense related to short-term borrowings amounted to $364 an d $201, respectiv ely, and for the nine months ended September 30, 2023 and 2022, interest expense related to short-term borrowings amounted to $1,338 and $326, respectively. |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
OTHER PAYABLES AND ACCRUED EXPENSES | OTHER PAYABLES AND ACCRUED EXPENSES At September 30, 2023 and December 31, 2022, other payables and accrued expenses consisted of the following: September 30, December 31, Accrued commissions $ 17,663 $ 14,890 Accrued warranty 10,448 8,780 Accrued payroll 13,713 12,201 Accrued professional fees 482 724 Accrued machine testing fees 529 1,215 Accrued machine sales fees 5,103 5,874 Accrued Lingang construction fees 27,259 738 Others 5,203 7,779 Total $ 80,400 $ 52,201 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases space under non-cancelable operating leases for several offices and manufacturing locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. Most leases include one or more options to renew. The Company regularly evaluates the renewal options, and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company has a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, it applies a portfolio approach for determining the incremental borrowing rate. The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 899 $ 776 $ 2,639 $ 2,133 Short-term lease cost 267 162 859 550 Total lease cost $ 1,166 $ 938 $ 3,498 $ 2,683 Supplemental cash flow information related to operating leases was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 899 $ 776 $ 2,639 $ 2,133 As of September 30, 2023, maturities of outstanding lease liabilities for all operating leases were as follows: December 31, Remainder of 2023 $ 884 2024 2,829 2025 1,262 2026 1,138 2027 1,137 2028 595 Total lease payments $ 7,845 Less: Interest (661) Present value of lease liabilities $ 7,184 The weighted average remaining lease terms and discount rates for all operating leases were as follows: September 30, December 31, Remaining lease term and discount rate: Weighted average remaining lease term (years) 3.64 2.00 Weighted average discount rate 3.94 % 4.25 % |
LONG-TERM BORROWINGS
LONG-TERM BORROWINGS | 9 Months Ended |
Sep. 30, 2023 | |
Long-Term Debt, by Current and Noncurrent [Abstract] | |
LONG-TERM BORROWINGS | LONG-TERM BORROWINGS At September 30, 2023 and December 31, 2022, long-term borrowings consisted of the following: September 30, December 31, Loan from China Merchants Bank $ 13,595 $ 15,265 Loans from Bank of China 5,015 5,744 Loan from Bank of Shanghai 13,930 — Loan from China CITIC Bank 13,930 — Less: Current portion (6,717) (2,322) $ 39,753 $ 18,687 The loan from China Merchants Bank is for the purpose of purchasing housing property in Lingang, Shanghai. The loan is repayable in 120 total installments with the last installment due in November 2030, with an annual interest rate o f 3.95%. The loan is pledged by the property of ACM Lingang and guaranteed by ACM Shanghai. The housing property was transferred to ACM Lingang in January 2022 (Note 6). Two loans from Bank of China are for the purpose of funding ACM Shanghai project expenditures. The loans bear interest at an annual rate of 2.6% and are repayable in 6 installments, with the last installments due in June 2024 and September 2024, respectively . The loan from Bank of Shanghai is for the purpose of funding ACM Shanghai project expenditures. The loan bears interest at an annual rate of 2.85%, and will be fully repaid in April 2025. The loan from China CITIC Bank is for the purpose of funding ACM Shanghai project expenditures. The loan bears interest at an annual rate of 3.4% and are repayable in 4 installments, with the last installments due in August 2025. As of September 30, 2023 and December 31, 2022, the total carrying amount of long-term loans was $46,470 and $21,009, compared with an estimated fair valu e of $43,151 and $18,538, re spectively. The fair value of the long-term loans is estimated by discounting cash flows using interest rates currently available for debts with similar terms and maturities (Level 2 fair value measurement). Refer to Note 2 for an explanation of the fair value hierarchy structure. Scheduled principal payments for the outstanding long-term loan, including the current portion, as of September 30, 2023 are as follows: Year ending December 31 Reminder of 2023 $ 482 2024 6,664 2025 29,591 2026 1,830 2027 1,903 Thereafter 6,000 $ 46,470 For the three months ended September 30, 2023 and 2022, respectively, interest related to long-term borrowings of $276 and $218 was incurred. For the nine months ended September 30, 2023 and 2022, respectively, interest related to long-term borrowings of $646 and $720 was incurred, of which $646 and $660 was charged to interest expenses and $0 and $60 was capitalized as property plant and equipment and other long-term assets, respectively. |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES Other long-term liabilities represent government subsidies received from mainland China governmental authorities for development and commercialization of certain technology but not yet recognized. At September 30, 2023 and December 31, 2022, other long-term liabilities consisted of the following unearned government subsidies: September 30, 2023 December 31, 2022 Subsidies to Stress Free Polishing project, commenced in 2008 and 2017 $ 498 $ 611 Subsidies to Electro Copper Plating project, commenced in 2014 96 119 Subsidies to other cleaning tools, commenced in 2020 658 785 Subsidies to SW Lingang R&D development, commenced in 2021 3,466 4,266 Subsidies to CO2 Technology, commenced in 2022 441 965 Other 947 575 Total $ 6,106 $ 7,321 |
LONG-TERM INVESTMENT
LONG-TERM INVESTMENT | 9 Months Ended |
Sep. 30, 2023 | |
Long-Term Investments [Abstract] | |
LONG-TERM INVESTMENT | LONG-TERM INVESTMENTS Equity method investee: Initial investment dates Investment entity Percent ownership by ACM and subsidiaries Investment purchase price Ninebell Co., Ltd. ("Ninebell") September 2017 ACM 20% $ 1,200 Wooil Flucon Co. ("Wooil") August 2022 ACM Singapore 20% $ 1,000 Shengyi Semiconductor Technology Co., Ltd. (“Shengyi”) June 2019 ACM Shanghai 14% $ 109 Hefei Shixi Chanheng Integrated Circuit Industry Venture Capital Fund Partnership (LP) (“Hefei Shixi”) September 2019 ACM Shanghai 10% RMB 30,000 ($4,200) Equity method investee: September 30, December 31, Ninebell $ 5,476 $ 5,199 Wooil 1,004 1,011 Shengyi 1,798 1,168 Hefei Shixi 6,148 8,645 Subtotal 14,426 16,023 Investments accounted for using measurement alternative: Waferworks (Shanghai) Co., Ltd 1,392 1,436 Shengyi 846 — Other 5,642 — Total 22,306 17,459 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SHORT-TERM INVESTMENTS | SHORT-TERM INVESTMENTS Pursuant to a Partnership Agreement dated June 9, 2020 (the “Partnership Agreement”) and a Supplementary Agreement thereto dated June 15, 2020 (the “Supplementary Agreement”), ACM Shanghai acquired shares of SMIC in July 2020. Shares of SMIC are listed on the STAR Market. Pursuant to an Agreement entered into on September 19, 2022 (the ‘‘Agreement’’), ACM Shanghai became a limited partner of the Nuode Asset Fund Pujiang No. 783 Single Asset Management Plan (‘‘Nuode Asset Fund’’), a Chinese limited partnership formed by Nuode Asset Management Co., Ltd, a financial services firm based in Shanghai, China. Nuode Asset Fund was formed to establish a special fund with the purpose to participate in certain technology related investments in mainland China. Subsequent to the future purchase, any investment will be held by Nuode Asset Fund and restricted for a minimum period of nine months. The limited partners of the Nuode Asset Fund contributed a total RMB 160 million ($22,160) to the fund, of which ACM Shanghai contributed RMB 30 million ($4,196), or 18.75% of the contribution on September 27, 2022. In December 2022, the Nuode Asset Fund purchased shares in the secondary stock offering of a publicly traded mainland China-stock listing. The number of shares owned by Nuode Asset Fund was apportioned to all of the limited partners in proportion to their respective capital contributions which is 18.75% in the case of ACM Shanghai. Pursuant to a Share Purchase Agreement dated June 2023, ACM Shanghai acquired shares of Huahong Semiconductor Limited (“Huahong”) in July 2023 with amount of RMB 100 million ($13,930). The shares held by ACM Shanghai are restricted for sale for a minimum period of twelve months. Huahong completed it STAR IPO in August 2023. Pursuant to a Share Purchase Agreement dated August 2023, ACM Shanghai acquired shares of Zhongjuxin Limited Company (“Zhongjuxin”) in September 2023 with amount of RMB 30 million ($4,179). The shares held by ACM Shanghai are restricted for sale for a minimum period of twelve months. Zhongjuxin completed it STAR IPO in September 2023. At September 30, 2023 and December 31, 2022, the components of short-term investments were as follows: September 30, December 31, Short-term investments listed in Shanghai Stock Exchange Cost $ 20,902 $ 14,779 Market value 21,844 20,209 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Unrealized loss on short-term investments $ (1,319) $ (5,281) $ (4,428) $ (9,562) For the three and nine months ended September 30, 2023, the Company received $2,205 and $19,914 in proceeds from the sale of short-term investments, including a realized gain of $656 and $8,569, respectively. For the three and nine months ended September 30, 2022, the Company received $4,488 in proceeds from the sale of short-term investments, including a realized gain of $1,136. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | RELATED PARTY BALANCES AND TRANSACTIONS Ninebell Ninebell is an equity investee of ACM (Note 14) and is the Company’s principal supplier of robotic delivery system subassemblies used in our single-wafer cleaning equipment. The Company purchases equipment from Ninebell for production in the ordinary course of business. The Company pays for a portion of the equipment in advance and is obligated for the remaining amounts upon receipt of the product. Shengyi Shengyi is an equity investee of ACM Shanghai (Note 14) and is one of the Company’s component suppliers in mainland China. The Company purchases components from Shengyi for production in the ordinary course of business. The Company incurs a service fee related to installation and hook-up fees which is recorded within cost of revenue on the Company’s condensed consolidated statements of operations and comprehensive income (loss). The Company pays for a portion of the raw materials in advance and is obligated for the remaining amounts upon receipt of the product. All related party outstanding balances are short-term in nature and are expected to be settled in cash. The following tables reflect related party transactions in our condensed consolidated financial statements: Advances to related party September 30, December 31, Ninebell $ 1,164 $ 3,322 Accounts payable September 30, December 31, Ninebell $ 4,054 $ 10,526 Shengyi 3,630 3,942 Total $ 7,684 $ 14,468 Three Months Ended September 30, Nine Months Ended September 30, Purchase of materials 2023 2022 2023 2022 Ninebell $ 6,830 $ 9,834 $ 33,831 $ 27,500 Shengyi 1,122 2,298 3,801 3,760 Total $ 7,952 $ 12,132 $ 37,632 $ 31,260 Three Months Ended September 30, Nine Months Ended September 30, Service fee charged by 2023 2022 2023 2022 Shengyi $ 79 $ 277 $ 809 $ 315 |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
COMMON STOCK | COMMON STOCK ACM is authorized to issue 150,000,000 shares of Class A common stock and 5,307,816 shares of Class B common stock, each with a par value of $0.0001. Each share of Class A common stock is entitled to one vote, and each share of Class B common stock is entitled to twenty votes and is convertible at any time into one share of Class A common stock. Shares of Class A common stock and Class B common stock are treated equally, identically and ratably with respect to any dividends declared by the Board of Directors of ACM unless such Board of Directors declares different dividends to the Class A common stock and Class B common stock, which is subject to approval from a majority of common stockholders. During the three months ended September 30, 2023, ACM issued 623,244 shares of Class A common stock upon option exercises by employees and non-employees. During the nine months ended September 30, 2023, ACM issued 919,448 shares of Class A common stock upon option exercises by employees and non-employees. During the three months ended September 30, 2022, ACM issued 231,710 sha res of Class A common stock upon option exercises by employees and non-employees. During the nine months ended September 30, 2022, ACM issued 763,584 shares of Class A common stock upon option exercises by employees and non-employees and an additional 1,002 shares of Class A common stock upon conversion of an equal number of shares of Class B common stock. At September 30, 2023 and December 31, 2022, the number of shares of Class A common stock issued and outs tanding wa s 55,574,734 and 54,655,286, respectively. At September 30, 2023 and December 31, 2022, the number of shares of Class B common stock issued and outstanding was 5,021,811 and 5,021,811, respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION ACM’s stock-based compensation consists of employee and non-employee awards issued under its 1998 Stock Option Plan and its 2016 Omnibus Incentive Plan. The vesting condition may consist of a service period condition determined by the Board of Directors for a grant or certain performance conditions determined by the Board of Directors for a grant. The fair value of the stock options granted with a service period based condition and/or performance condition is estimated at the date of grant using the Black-Scholes option pricing model. The fair value of the stock option s granted with a market based condition is estimated at the date of grant using the Monte Carlo simulation model. Employee Awards The following table summarizes the Company’s employee share option activities during the nine months ended September 30, 2023: Number of Weighted Weighted Weighted Average Outstanding at December 31, 2022 9,211,641 $ 3.58 $ 8.24 6.36 years Granted 2,202,000 10.34 13.87 Exercised (680,319) 0.89 2.24 Forfeited/cancelled (44,560) 10.65 21.76 Outstanding at September 30, 2023 10,688,762 $ 5.15 $ 9.59 6.36 years Vested and exercisable at September 30, 2023 6,356,350 As of September 30, 2023 and December 31, 2022, $30,703 and $16,009, respectively, of total unrecognized employee stock-based compensation expense, net of estimated forfeitures, related to employee stock-based awards for ACM were expected to be recognized over a weighted-average period of 3.90 years and 4.04 years, respectively. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures. The fair value of options granted to employees with a service period based condition is estimated on the grant date using the Black-Scholes valuation with following assumptions: Nine Months Ended Years ended December 31, 2022 Fair value of share of common stock (1) $11.85-$13.89 $16.83-$25.45 Expected term in years(2) 5.50-6.25 5.50-6.25 Volatility(3) 84.95%-86.45% 49.43%-50.87% Risk-free interest rate(4) 4.16%-4.17% 1.7%-3.04% (1) Equal to closing value on the grant date. (2) Expected term of share options is based on the average of the vesting period and the contractual term for each grant according to ASC 718, Compensation – Stock Compensation. (3) Volatility is calculated based on the historical volatility of ACM in the period equal to the expected term of each grant. (4) Risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the share options in effect at the time of grant. Non-employee Awards The following table summarizes the Company’s non-employee share option activities during the nine months ended September 30, 2023: Number of Weighted Weighted Weighted Outstanding at December 31, 2022 1,483,658 $ 0.38 $ 1.15 3.68 years Exercised (239,129) 0.24 0.56 Forfeited/cancelled (10,957) 0.22 0.50 Outstanding at September 30, 2023 1,233,572 $ 0.41 $ 1.27 2.85 years Vested and exercisable at September 30, 2023 1,226,072 As of September 30, 2023 and December 31, 2022, $21 and $55, respectively, of total unrecognized non-employee stock-based compensation expense, net of estimated forfeitures, related to stock-based awards were expected to be recognized over a weighted-average period of 0.45 years and 1.20 years, respectively. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures. ACM Shanghai 2019 Option Grants In January 2020, ACM Shanghai adopted a 2019 Stock Option Incentive Plan (the “2019 Subsidiary Stock Option Plan”) that provides for, among other incentives, the granting to officers, directors, employees of options to purchase shares of ACM Shanghai’s common stock. The following table summarizes the stock option activities of the ACM Shanghai 2019 Subsidiary Stock Option Plan during the nine months ended September 30, 2023: Number of Weighted Weighted Weighted Outstanding at December 31, 2022 5,377,500 $ 0.23 $ 1.93 1.76 years Exercise (2,150,309) $ 0.20 $ 1.85 Forfeited/cancelled (92,308) $ 0.22 $ 1.85 Outstanding at September 30, 2023 3,134,883 $ 0.23 $ 1.90 1.10 years Vested and exercisable at September 30, 2023 492,308 As of September 30, 2023 and December 31, 2022, $38 and $160, respectively, of total unrecognized employee stock-based compensation expense, net of estimated forfeitures, related to ACM Shanghai 2019 stock-based awards were expected to be recognized over a weighted-average period of 0.75 years and 0.25 years, respectively. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures. ACM Shanghai 2023 Option Grants In June 2023, ACM Shanghai adopted a 2023 Stock Option Incentive Plan ( the "2023 Subsidiary Stock Option Plan”) that provides for, among other incentives, the granting to officers, directors, employees of options to purchase shares of ACM Shanghai’s common stock. The vesting conditions consist of service periods conditions and performance conditions related to certain sales and research and development progress targets determined by the Board of Directors of ACM Shanghai. The following table summarizes the ACM Shanghai 2023 Subsidiary Stock Option Plan’s stock option activities during the nine months ended September 30, 2023: Number of Option Shares in ACM Shanghai Weighted Weighted Weighted Outstanding at December 31, 2022 - $ — $ — 0.00 years Granted 10,648,500 $ 9.24 $ 7.10 Outstanding at September 30, 2023 10,648,500 $ 9.24 $ 7.10 3.34 years Vested and exercisable at September 30, 2023 - The fair value of options granted to employees with a service period based condition is estimated on the grant date using the Black-Scholes valuation with following assumptions: Nine Months Ended September 30, 2023 Fair value of share of common stock (1) RMB 105.27 Expected term in years (2) 1.5.-4.5 Volatility (3) 60.00%-60.60% Risk-free interest rate (4) 1.50%-2.75% (1) Equal to closing value on the grant date. (2) Expected term of share options is based on the average of the vesting period and the contractual term for each grant according to ASC 718. (3) Volatility is calculated based on the historical volatility of ACM Shanghai in the period equal to the expected term of each grant. (4) Risk-free interest rate is based on the yields of RMB deposit in mainland China with maturities similar to the expected term of the share options in effect at the time of grant. As of September 30, 2023 and December 31, 2022, $90,197 and $0, respectively, of total unrecognized non-employee stock-based compensation expense, net of estimated forfeitures, related to ACM Shanghai stock-based awards were expected to be recognized over a weighted-average period of 2.34 years and nil years, respectively. Total recognized compensation cost may be adjusted for future changes in estimated forfeitures. The following table summarizes the components of stock-based compensation expense included in the consolidated statements of operations and comprehensive income (loss): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock-based compensation expense: Cost of revenue $ 588 $ 130 $ 838 $ 383 Sales and marketing expense 2,543 349 3,405 1,277 Research and development expense 3,421 666 4,831 1,733 General and administrative expense 4,029 748 5,592 1,843 $ 10,581 $ 1,893 $ 14,666 $ 5,236 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock-based compensation expense by type: Employee stock option plan $ 2,352 $ 1,798 $ 6,345 $ 4,943 Non-employee stock option plan 12 12 35 35 2019 and 2023 Subsidiary stock option plan 8,217 83 8,286 258 $ 10,581 $ 1,893 $ 14,666 $ 5,236 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period during which such rates are enacted. The Company considers all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carry-forward periods) and projected taxable income in assessing the realizability of deferred tax assets. In making such judgments, significant weight is given to evidence that can be objectively verified. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. Prior to September 30, 2019, the Company had recorded a valuation allowance for the full amount of net deferred tax assets in the United States, as the realization of deferred tax assets was uncertain. Since September 30, 2019, the Company has not maintained a valuation allowance except for a partial valuation allowance on certain U.S. and foreign deferred tax assets. In order to recognize the remaining U.S. deferred tax assets that continue to be subject to a valuation allowance, the Company will need to generate sufficient U.S. taxable income in future periods before the expiration of the deferred tax assets governed by the tax code. ACM Shanghai has shown a three-year historical cumulative profit and has projections of future income. As a result, the Company does not maintain a valuation allowance. The Company accounts for uncertain tax positions in accordance with the authoritative guidance on income taxes under which the Company may only recognize or continue to recognize tax positions that meet a more likely than not threshold. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. The Company’s effective tax rate differs from statutory rates of 21% for U.S. federal income tax purposes and 15% to 25% for Chinese income tax purposes due to the effects of the valuation allowance and certain permanent differences from book-tax differences, including stock based compensation, deemed dividend income under Subchapter F of the U.S. Internal Revenue Code of 1986, as amended (Subpart F), and global intangible low-taxed income (GILTI) inclusions, and R&D super deduction. As a result, the Company recorded income tax expense of $11,235 and $14,138 during the nine months ended September 30, 2023 and 2022, respectively. The decrease in the Company's effective income tax rate for the nine months ended September 30, 2023 compared to the same period of the prior year was primarily due to an increased benefit from the specified deduction to the GILTI inclusion as a result of reduced net operating loss utilization which partially limited the specified deduction in the prior year, and reduced GILTI inclusion related to the amount of capitalized R&D expenses relative to pre-tax income. Under the change in Section 174 made by the Tax Cuts and Jobs Act of 2017 which became effective on January 1, 2022, the Company is required to capitalize, and subsequently amortize R&D expenses over fifteen years for research activities conducted outside of the U.S. The capitalization of overseas R&D expenses results in a significant increase in the Company’s global intangible low-taxed income inclusion. Congress is considering legislation, but legislation has not passed, that would defer the capitalization requirement to later years. The Company had total unrecognized tax benefits of $8,448 as of both September 30, 2023 and December 31, 2022. If recognized, the net impact to effective rate, after indirect offset, would be $6,178. The Company did not expect any reversal of unrecognized tax benefits in the next 12 months. The Company will recognize interest and penalties, when they occur, related to uncertain tax provisions as a component of tax expense. For the nine months ended September 30, 2023 and 2022, $853 a nd $142 of interest and penalties was recognized, respectively. The Company files income tax returns in the United States and state and foreign jurisdictions. The federal, state and foreign income tax returns are under the statute of limitations subject to tax examinations for the tax years ended December 31, 2001 through December 31, 2022. To the extent the Company has tax attribute carry-forwards, the tax years in which the attribute was generated may still be adjusted upon examination by the U.S. Internal Revenue Service, state or foreign tax authorities to the extent utilized in a future period. The Company’s four principal mainland China subsidiaries, ACM Shanghai, ACM Wuxi, ACM Beijing and ACM Lingang, are liable for mainland China corporate income taxes at the rates of 15%, 25%, 25% and 15%, respectively. Pursuant to the Corporate Income Tax Law of mainland China, ACM’s mainland China subsidiaries generally would be liable for mainland China corporate income taxes as a rate of 25%. According to Guoshuihan 2009 No. 203, an entity certified as an “advanced and new technology enterprise” is entitled to a preferential income tax rate of 15%. ACM Shanghai was certified as an “advanced and new technology enterprise” in 2012 and again in 2016, 2018, and 2021, with an effective period of three years. In 2021, ACM Shanghai was certified as an eligible integrated circuit production enterprise and was entitled to a preferential income tax rate of 12.5% from January 1, 2020 to December 31, 2022. Certain entities which meet requirements according to the Policy of the Lingang New area in China(Shanghai) Pilot Free Trade Zone are entitled to a preferential income tax rate of 15%. ACM Lingang was certified for this in 2021, and this preferential income tax rate is valid from January 1, 2020 until December 31, 2024. Income tax expense was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Total income tax expense $ (718) $ (10,470) $ (11,235) $ (14,138) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company leases offices under non-cancelable operating lease agreements. See Note 11 for future minimum lease payments under non-cancelable operating lease agreements with initial terms of one year or more. As of September 30, 2023, the Company had $41,205 of open capital commitments. Covenants in Lingang’s Grant Contract for State-owned Constructio n Land Use Right in Shanghai City with the China (Shanghai) Pilot Free Trade Zone Lingang Special Area Administration require, among other things, that Lingang pay liquidated damages in the event that (a) it does not make a total investment (including the costs of construction, fixtures, equipment and grant fees) of at least RMB 450.0 million ($62,600) or (b) within six years after the land use right is obtained, the Company does not (i) generate a minimum specified amount of annual sales of products manufactured on the granted land or (ii) pay at least RMB 157.6 million ($22,000) in annual total taxes (including value-added taxes, corporate income tax, personal income taxes, urban maintenance and construction taxes, education surcharges, stamp taxes, and vehicle and shipping taxes) as a result of operations in connection with the granted land. As of September 30, 2023 and December 31, 2022, the Company had paid in total $92,917 and $35,376, respectively for its Lingang-related investments. In the normal course of business, the Co mpany is subject to contingencies, including legal proceedings and environmental claims arising out of the normal course of businesses that relate to a wide range of matters, including among others, contracts breach liability. The Company records accruals for such contingencies based upon the assessment of the probability of occurrence and, where determinable, an estimate of the liability. Management may consider many factors in making these assessments including past history, scientific evidence and the specifics of each matter. Some of these contingencies involve claims that are subject to substantial uncertainties and un-estimable damages. The Company’s management has evaluated all such proceedings and claims that existed as of September 30, 2023 or December 31, 2022. In the opinion of management, no provision for liability nor disclosure was required as of September 30, 2023 related to any claim against the Company because: (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim; (b) a reasonably possible loss or range of loss cannot be estimated; or (c) such estimate is immaterial. As of September 30, 2023, the Company had no outstanding legal proceedings. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company is engaged in the development, manufacture and sale of single-wafer wet cleaning equipment, which have been organized as one reporting segment as the equipment has substantially similar nature and economic characteristics. The Company’s chief operating decision maker, ACM’s Chief Executive Officer, receives and reviews the results of the operations for all major types of equipment as a whole when making decisions about allocating resources and assessing performance of the Company. For geographical reporting, revenue by geographic location is determined by the location of customers’ facilities to which products were shipped. Long-lived assets consist primarily of property, plant and equipment, land use right, and right-of-use assets and are attributed to the geographic location in which they are located. The balance of selected long-lived assets by geographic location as of September 30, 2023 and December 31, 2022 are presented in the following table: September 30, December 31, Long-lived assets by geographic location: Mainland China $ 196,597 $ 140,481 Korea 12,300 3,830 United States 1,319 10 Total $ 210,216 $ 144,321 |
STATUTORY SURPLUS RESERVE
STATUTORY SURPLUS RESERVE | 9 Months Ended |
Sep. 30, 2023 | |
STATUTORY SURPLUS RESERVE [Abstract] | |
STATUTORY SURPLUS RESERVE | STATUTORY SURPLUS RESERVE In accordance with mainland China’s Foreign Enterprise Law, ACM Shanghai, ACM Lingang, and ACM Wuxi are required to make appropriation to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income in accordance with generally accepted accounting principles of mainland China (“mainland China GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with mainland China GAAP until the reserve is equal to 50% of the entities’ registered capital. The amount is calculated annually at the end of each calendar year. The balances of statutory reserve funds was $16,881 as of both September 30, 2023 and December 31, 2022, and is presented as statutory surplus reserve on the Company’s condensed consolidated balance sheets. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 25,679 | $ 21,004 | $ 59,649 | $ 27,454 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Sotheara Cheay [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 11, 2023, Sotheara Cheav, Senior Vice President, Manufacturing of ACM Shanghai, adopted a Rule 10b5-1 trading arrangement (the “Cheav Plan”) that is intended to satisfy the affirmative defense of Rule 10b5-1(c) of the Exchange Act. The Cheav Plan allows for the contemporaneous exercise of options and sale of up to 26,000 shares of Class A common stock, at specific market prices, commencing on November 10, 2023, and continuing until (i) all such options are exercised and the underlying shares are sold, (ii) November 8, 2024, or (iii) such date that the Cheav Plan is otherwise terminated according to its terms, whichever comes first. | |
Name | Sotheara Cheav | |
Title | Senior Vice President, Manufacturing of ACM Shanghai | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 11, 2023 | |
Arrangement Duration | 364 days | |
Aggregate Available | 26,000 | 26,000 |
Tracy Liu [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 21, 2023, Tracy Liu, a member of the Board of Directors of ACM Research, adopted a Rule 10b5-1 trading arrangement (the “Liu Plan”) that is intended to satisfy the affirmative defense of Rule 10b5-1(c) of the Exchange Act. The Liu Plan allows for the contemporaneous exercise of options and sale of up to 37,500 shares of Class A common stock, at specific market prices, commencing on November 20, 2023, and continuing until (i) all such options are exercised and the underlying shares are sold, (ii) August 21, 2024, or (iii) such date that the Liu Plan is otherwise terminated according to its terms, whichever comes first. | |
Name | Tracy Liu | |
Title | member of the Board of Directors of ACM Research | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 21, 2023 | |
Arrangement Duration | 275 days | |
Aggregate Available | 37,500 | 37,500 |
Lisa Feng [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On September 14, 2023, Lisa Feng, Chief Financial Officer of ACM Shanghai, adopted a Rule 10b5-1 trading arrangement (the “Feng Plan”) that is intended to satisfy the affirmative defense of Rule 10b5-1(c) of the Exchange Act. The Feng Plan allows for the contemporaneous exercise of options and sale of up to 15,000 shares of Class A common stock, at specific market prices, commencing on December 14, 2023, and continuing until (i) all such options are exercised and the underlying shares are sold, (ii) September 13, 2024, or (iii) such date that the Feng Plan is otherwise terminated according to its terms, whichever comes first. | |
Name | Lisa Feng | |
Title | Chief Financial Officer of ACM Shanghai | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | September 14, 2023 | |
Arrangement Duration | 274 days | |
Aggregate Available | 15,000 | 15,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The Company’s condensed consolidated financial statements include the accounts of ACM and its subsidiaries. ACM’s subsidiaries are those entities in which ACM, directly or indirectly, controls a majority of the voting power. All significant intercompany transactions and balances have been eliminated upon consolidation. The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the historical consolidated financial statements of the Company for the year ended December 31, 2022 included in ACM’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The accompanying condensed consolidated financial statements are unaudited. In the opinion of management, these unaudited condensed consolidated financial statements of the Company reflect all adjustments that are necessary for a fair presentation of the Company’s financial position and results of operations. Such adjustments are of a normal recurring nature, unless otherwise noted. The balance sheet as of September 30, 2023 and the results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for any future period. |
Common Stock Split | Common Stock Split Unless otherwise indicated, all prior period share and per share amounts, common stock, other capital information presented in the accompanying financial statements and these notes thereto reflect the impact of the Stock Split (Note 1). Proportional adjustments were also made to outstanding awards under the Company’s stock-based compensation plans. |
Reclassification | ReclassificationCertain prior period balances have been reclassified to conform to the current period presentation in the accompanying notes. These reclassifications did not have a material impact on the previously reported financial statements. |
Recent Restrictions by U.S. Department of Commerce, Japan and Netherlands for PRC-based Semiconductor Producers | Recent Restrictions by U.S. Department of Commerce, Japan and Netherlands for Mainland China-based Semiconductor Producers Substantially all of ACM Shanghai’s customers and a significant portion of its operations are based in mainland China. In 2022, Shanghai Huali Microelectronics Corporation, together with Huahong Semiconductor Ltd., collectively known as The Shanghai Huahong (Group) Company, Ltd., or The Huali Huahong Group, a leading mainland China-based foundry, accounted for 18.2% of our revenue; Semiconductor Manufacturing International Corporation, or SMIC, a leading mainland China-based foundry, accounted for 15.6% of our revenue; and Yangtze Memory Technologies Co., Ltd., or YMTC, a leading mainland China-based memory chip company, together with one of its subsidiaries, accounted for 10.0% of our revenue. In early October 2022 the U.S. government enacted new rules aimed at restricting U.S. support for mainland China’s ability to manufacture advanced semiconductors. The rules include new export license requirements for exports, re-exports or transfers to or within mainland China of additional types of semiconductor manufacturing items, items for use in manufacturing designated types of semiconductor manufacturing equipment in mainland China, and semiconductor manufacturing equipment for use at certain IC manufacturing and development facilities in mainland China. In addition, the U.S. government imposed new restrictions by which U.S. persons anywhere in the world are effectively barred from engaging in certain activities related to the development and production of certain semiconductors at mainland China fabrication facilities meeting specified criteria, even if no items subject to the U.S. Export Administration Regulations (EAR) are involved. These restrictions were later updated to extend to Macau In October 2023, the U.S. government revised and expanded the October 2022 controls with the release of additional rules. While the release primarily clarified the October 2022 regulations, certain changes have the potential to be more significant. In particular, the U.S. government expanded license requirements on additional types of semiconductors, semiconductor manufacturing items, and items for use in manufacturing certain types of semiconductor manufacturing equipment, and also expanded the scope to include additional countries beyond mainland China and Macau. ACM Shanghai has determined that several of its customers have mainland China-based facilities that meet the restricted criteria set out in the October 2022 and October 2023 rules, and has also determined that several of its products, and/or components for its products, may meet the parameters of export control classification numbers, or ECCNs, affected by the restrictions. ACM and ACM Shanghai have implemented modifications to their existing business policies and practices in response to the October 2022 restrictions, including by imposing limitations on the activities of their U.S. persons and undertaking measures in connection with their supply chains more broadly to comply with the new regulations. ACM Shanghai is continuing to assess the impact of the October 2023 changes, together with the October 2022 rules, and will further modify its policies and practices as required to comply with the updates. Based on our ongoing review, we believe these regulations may directly impact ACM Shanghai’s ability to meet its future production plans, or indirectly impact the spending plans of ACM Shanghai’s customer base. ACM may not be able to import, or may face substantial restrictions in importing, certain parts from the United States or parts subject to U.S. export controls from outside the United States to support tool shipments to such facilities, or to be embedded into tools defined by affected ECCNs. ACM and ACM Shanghai believe that as a result of the October 2022 restrictions, several ACM Shanghai customers have significantly reduced production and related capital spending at facilities meeting the restricted advanced node capabilities. In addition, ACM Shanghai has experienced challenges as the companies in its supply chain adapt their policies to the new regulations. These factors had an adverse impact on ACM Shanghai’s shipments and sales for the three and nine months ended September 30, 2023. During the nine months ended September 30, 2023, two prominent exporters of advanced semiconductor manufacturing equipment, the Netherlands and Japan, announced and began to implement plans to join the United States in imposing semiconductor-focused export controls. On May 23, 2023, the Japanese government issued the final amendment to an ordinance implementing new export controls to require licensing for export of certain advanced semiconductor manufacturing equipment, effective as of July 23, 2023. The amendment expands the scope of export controls to prohibit (1) exporting twenty-three additional categories of items relating to semiconductor manufacturing and (2) providing technology relating to manufacturing, development or use of these categories of items, in both cases, without an advance license. While the expanded export controls apply to exports to any jurisdiction, exports to certain jurisdictions, such as the United States, are expected to be permitted by certain types of broad general licenses. However, it remains to be seen whether the Japanese government will authorize any exports of these items to mainland China by a limited general license or specific license, if at all. On June 30, 2023, the Government of the Netherlands published additional export control measures for advanced semiconductor manufacturing equipment. The Regulation on Advanced Semiconductor Manufacturing Equipment took effect on September 1, 2023. From that point on, the export of certain advanced semiconductor manufacturing equipment, as specified in the Annex to the Regulation , has been subject to a national export license authorization requirement by the Dutch Central Import and Export Service. As a result of the new restrictions imposed by the Japanese and Dutch governments, ACM Shanghai and/or several of its customers in mainland China may be impacted by, and required to reduce their production capabilities due to, the lack of, or reduced, ability to source items relating to semiconductor manufacturing from Japan and the Netherlands. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet date and the reported revenues and expenses during the reported period in the condensed consolidated financial statements and accompanying notes. The Company’s significant accounting estimates and assumptions include, but are not limited to, those used for revenue recognition and deferred revenue, the valuation and recognition of fair value of certain short-term investments, stock-based compensation arrangements, realization of deferred tax assets, assessment for impairment of long-lived assets and long-term investments, allowance for credit losses, inventory valuation, useful lives of property, plant and equipment and useful lives of intangible assets. Management evaluates these estimates and assumptions on a regular basis. Actual results could differ from those estimates and assumptions. |
Revenue Recognition | Revenue Recognition The Company derives revenue principally from the sale of semiconductor capital equipment, or tools, used for the fabrication of integrated semiconductor circuits. The Company recognizes revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services by following a five-step process: 1. Identify the contract(s) with a customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations in the contract; and 5. Recognize revenue when, or as, a performance obligation is satisfied. Identify the contract(s) with a customer. The Company generally considers written documentation including, but not limited to, signed purchase orders, master agreements, and sales orders as contracts, provided it has approval and commitment from the customer, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collection is probable. Collectability is assessed based on management’s assessment of the customer’s creditworthiness, historical payment experience, as well as other relevant factors. Identify the performance obligations in the contract. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. The Company’s performance obligations generally include sales of tools and spare parts. In addition, customer contracts can contain provisions for installation, training, software updates, most-favored pricing for spare parts, and other items which have been deemed immaterial in the context of the contract. Determine the transaction price. The transaction price for the Company’s contracts with customers may include fixed and variable consideration. The Company includes variable consideration in the transaction price to the extent that it is probable that a significant reversal of revenue will not occur in the future based on the Company’s historical experience with similar arrangements. Allocate the transaction price to the performance obligations in the contract. For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. The Company defers revenue associated with spare parts, sold together with its tools, based on its stand-alone observable selling prices or using an expected cost-plus-margin approach when a stand-alone selling price is not directly observable, and recognizes revenue upon subsequent delivery. Recognize revenue when, or as, a performance obligation is satisfied . The Company recognizes revenue from tools and spare parts at a point in time, when the Company has satisfied its performance obligation. The Company’s sales arrangements do not include a general right of return. For shipments made to a customer that has not previously accepted a specific type of tool (“first tools”), revenues are recognized when the goods are accepted by the customer. For shipments made to a customer that has previously accepted a specific type of tool, revenues are recognized upon shipment or delivery because the Company can objectively demonstrate that the goods meet all the required customer specifications. The Company’s warranties provide assurance that its products will function as expected and in accordance with certain specifications. The Company’s warranties are intended to safeguard the customer against existing defects and do not provide any incremental service to the customer. They are not separate performance obligations and are accounted for under ASC 460, Guarantees . Contract liabilities include payments received from customers prior to the transfer of control of certain goods which are recorded as advances from customers, and spare parts sold together with its tools which are recorded as deferred revenue. The Company does not have contract assets. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, bank deposits that are unrestricted as to withdrawal and use, and highly liquid investments with an original maturity date of three months or less at the date of purchase. At times, cash deposits may exceed government-insured limits. The following table presents cash and cash equivalents, according to jurisdiction as of September 30, 2023 and December 31, 2022: September 30, December 31, United States $ 36,251 $ 25,011 Mainland China 109,992 129,695 China Hong Kong 56,731 89,187 Korea 4,060 4,007 Singapore 67 51 Total $ 207,101 $ 247,951 The amounts in mainland China do not include short-term and long-term time deposits which totaled $118,834 and $172,448 at September 30, 2023 and December 31, 2022, respectively. Cash held in the U.S. exceeds the Federal Deposit Insurance Corporation insurance limits and is subject to risk of loss. No losses have been experienced to date. Cash amounts held in mainland China are subject to a series of risk control regulatory standards from mainland China bank regulatory authorities. ACM’s subsidiaries in mainland China are required to obtain approval from the State Administration of Foreign Exchange (“SAFE”) to transfer funds into or out of mainland China. SAFE requires a valid agreement to approve the transfers, which are processed through a bank. Other than these mainland China foreign exchange restrictions, ACM’s subsidiaries in mainland China are not subject to any restrictions and limitations on its ability to transfer funds to ACM or among our other subsidiaries. However, cash held in mainland China does exceed applicable insurance limits and is subject to risk of loss, although no such losses have been experienced to date. ACM California periodically procures goods and services on behalf of ACM Shanghai. For these transactions, ACM Shanghai makes cash payments to ACM California in accordance with applicable transfer pricing arrangements. For the three and nine months ended September 30, 2023, cash payments from ACM Shanghai to ACM California for the procurement of goods and services were $10,724 and $35,195, respectively. For the three and nine months ended September 30, 2022, cash payments from ACM Shanghai to ACM California for the procurement of goods and services were $12,682 and $24,631, respectively. ACM California periodically borrows funds for working capital advances from its direct parent, CleanChip. ACM California repays or renews these intercompany loans in accordance with their terms. For sales through CleanChip and ACM Research, a certain amount of sales or advanced payments from customers is repatriated back to ACM Shanghai in accordance with applicable transfer pricing arrangements in the ordinary course of business. ACM Research provides services to certain customers located in the U.S., Europe and other regions outside of mainland China to support the evaluation of first tools and provide support for tools under warranty on behalf of ACM Shanghai. For these transactions, ACM Shanghai makes cash payments to ACM Research in accordance with applicable transfer pricing arrangements. Subsequent to June 30, 2020, with the exception of sales and services-related transfer-pricing payments in the ordinary course of business, and dividends paid by ACM Shanghai to ACM Research, no cash transfers or other payments or distributions have been made between ACM Research and ACM Shanghai. ACM Research intends to retain any future earnings to finance the operations and expenses of the business, and does not expect to distribute earnings or declare or pay any dividends to holders of ACM Research Class A common stock in the foreseeable future. Amounts held in Korea exceed the Korea Deposit Insurance Corporation insurance limits and is subject to risk of loss. No losses have been experienced to date. There is no additional restriction for the transfer of cash from bank accounts in the U.S., Korea, Singapore and Hong Kong. For the three and nine months ended September 30, 2023 and 2022, with the exception of sales and services-related transfer-pricing payments in the ordinary course of business, and dividends paid by ACM Shanghai to ACM Research, no |
Time Deposits | Time DepositsTime deposits are deposited with banks in mainland China with fixed terms and interest rates which cannot be withdrawn before maturity, and are presented as short-term deposits and long-term deposits in the condensed consolidated financial statements based on their expected time of collection. They are also subject to the risk control regulatory standards described above upon maturity. |
Financial Instruments | Financial Instruments The Company periodically invests in equity securities, and maintains an investment portfolio of various holdings, types, and maturities. For equity investments that do not have a readily determinable fair value, the Company classified them as long-term investments, and records them using either: 1) the measurement alternative which measures the equity investments at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes; or 2) the equity method whereby the Company recognizes its proportional share of the income or loss from the equity method investment. The equity method is utilized when the equity investments are common stock or in substance common stock, and the Company does not have the ability to control the investee but is deemed to have the ability to exercise significant influence over the investee’s operating or financial policies. For equity investments that have a readily determinable fair value, the Company classified them as short-term investments, and records them at fair market value on a recurring basis based upon quoted market prices. Realized and unrealized gains and losses resulting from application of the measurement alternative, the impact of the application of the equity method to the Company’s equity investments, and recognition of changes in fair market value, as applicable, are recognized as non-operating income (expenses), net in the co ndensed consolidated statements of operations and comprehensive income (loss). The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value. The level of an asset or liability in the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities with sufficient volume and frequency of transactions. Level 2: Valuations based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active for identical assets or liabilities, or model-derived valuations techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Valuations based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities and based on non-binding, broker-provided price quotes and may not have been corroborated by observable market data. |
Basic and Diluted Net Income per Share of Common Stock | ACM Research has been authorized to issue Class A and Class B common stock since redomesticating in Delaware in November 2016. The two classes of common stock are substantially identical in all material respects, except for voting rights. Since ACM Research did not declare any cash dividends during the three and nine months ended September 30, 2023 or 2022, the net income per share of common stock attributable to each class is the same under the “two-class” method. As such, the two classes of common stock have been presented on a combined basis in the condensed consolidated statements of operations and comprehensive income (loss) and in the above computation of net income per share of common stock. Diluted net income per share of common stock reflects the potential dilution from securities, such as stock options that could share in ACM Research’s earnings. Certain potential dilutive securities were excluded from the net income per share calculation because the impact would be anti-dilutive. ACM Research’s potential dilutive securities consist of 1,757,605 and 4,099,228 stock options for the three and nine months ended September 30, 2023 and 1,993,050 and 1,897,050 stock options for the three and nine months ended September 30, 2022. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents, time deposits, and accounts receivable. The Company deposits and invests its cash and cash equivalents and time deposits with financial institutions that management believes are creditworthy. The Company is potentially subject to concentrations of credit risks in its accounts receivable and revenue. For the three months ended September 30, 2023 and 2022, two customers accounted for 53.2% and three customers accounted for 61.4% of revenue, respectively. For the nine months ended September 30, 2023 and 2022, three customers accounted for 48.8% and three customers accounted for 50.1% of revenue, respectively. |
Recently Adopted Accounting Pronouncements And Recent Accounting Standards Not Yet Adopted | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”). ASC 326 replaced the pre-existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASC 326 requires use of a forward-looking expected credit loss model for accounts receivables, loans and other financial instruments. In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. ASU 2019-10 defers the effective date of ASU 2016-13 for public filers that are considered small reporting companies (“SRC”) as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company was eligible to be a SRC based on its SRC determination as of November 15, 2019 (which was the issuance date of ASU 2019-10) in accordance with SEC regulations, the Company adopted amendments in ASC 326 for the year beginning January 1, 2023. Adoption of the standard requires using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align existing credit loss methodology with the new standard. The cumulative-effect adjustment, net of tax impact, to retained earnings as of January 1, 2023 was $(1,769). In June 2022, the FASB issued ASU 2022-03— Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”) which clarifies how the fair values of equity securities subject to contractual sale restrictions is determined (Topic 820). The amendment clarifies that a contractual sale restriction should not be considered in measuring fair value. It also requires certain qualitative and quantitative disclosures related to equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Company for fiscal year beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. The Company early adopted ASU 2022-03 in the third quarter of 2023, and the adoption did not have a material impact on the Company’s financial position, results of operations and cash flows. |
DESCRIPTION OF BUSINESS (Tables
DESCRIPTION OF BUSINESS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Direct or Indirect Interests of Subsidiaries | The Company has direct or i ndirect interests in the follow ing subsidiaries: Effective interest held as at Name of subsidiaries Place and date of incorporation September 30, December 31, ACM Research (Shanghai), Inc. Mainland China, May 2005 82.1 % 82.5 % ACM Research (Wuxi), Inc. Mainland China, July 2011 82.1 % 82.5 % CleanChip Technologies Limited Hong Kong, June 2017 82.1 % 82.5 % ACM Research Korea CO., LTD. Korea, December 2017 82.1 % 82.5 % ACM Research (Lingang), Inc. (1) Mainland China, March 2019 82.1 % 82.5 % ACM Research (CA), Inc. USA, April 2019 82.1 % 82.5 % ACM Research (Cayman), Inc. Cayman Islands, April 2019 100.0 % 100.0 % ACM Research (Singapore) PTE. Ltd. Singapore, August 2021 100.0 % 100.0 % ACM Research (Beijing), Inc. Mainland China,, February 2022 82.1 % 82.5 % Hanguk ACM CO., LTD. Korea, March 2022 100.0 % 100.0 % Yusheng Micro Semiconductor (Shanghai) Co., Ltd Mainland China, June 2023 82.1 % — % ACM-Wooil Microelectronics (Shanghai) Co., Ltd Mainland China, June 2023 59.4 % — % (1)ACM Research (Lingang) Inc. is the English name referred to by its Chinese language name Shengwei Research (Shanghai), Inc. in prior filings. ACM Research (Lingang), Inc. and Shengwei Research (Shanghai), Inc. refer to the same entity. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | The following table presents cash and cash equivalents, according to jurisdiction as of September 30, 2023 and December 31, 2022: September 30, December 31, United States $ 36,251 $ 25,011 Mainland China 109,992 129,695 China Hong Kong 56,731 89,187 Korea 4,060 4,007 Singapore 67 51 Total $ 207,101 $ 247,951 |
Summary of Time Deposits | At September 30, 2023 and December 31, 2022, time deposits consisted of the following: September 30, December 31, Deposit in China Merchant Bank which matured on January 29, 2023 with an annual interest rate of 2.25% $ — $ 38,772 Deposit in China Everbright Bank which matured on January 29, 2023 with an annual interest rate of 2.25% $ — $ 14,360 Deposit in China Everbright Bank which matured on May 22, 2023 with an annual interest rate of 5.07% $ — $ 3,000 Deposit in China Industrial Bank which matured on January 30, 2023 with an annual interest rate of 2.15% $ — $ 14,360 Deposit in China Merchant Bank which matures on January 29, 2024 with an annual interest rate of 2.85% $ 27,860 $ 28,720 Deposit in Bank of Ningbo which matures on February 17, 2024 with an annual interest rate of 2.85% $ 41,790 $ 43,080 Deposit in Shanghai Pudong Development Bank which matures on October 20, 2025 with an annual interest rate of 3.10% $ 6,965 $ 7,180 Deposit in Shanghai Pudong Development Bank which matures on November 14, 2025 with an annual interest rate of 3.10% $ 6,965 $ 7,180 Deposit in Shanghai Pudong Development Bank which matures on December 8, 2025 with an annual interest rate of 3.10% $ 4,179 $ 4,308 Deposit in Shanghai Pudong Development Bank which matures on December 15, 2025 with an annual interest rate of 3.10% $ 4,179 $ 4,308 Deposit in Shanghai Pudong Development Bank which matures on December 30, 2025 with an annual interest rate of 3.10% $ 6,965 $ 7,180 Deposit in China Industrial Bank which matures on January 30, 2026 with an annual interest rate of 3.15% $ 13,930 $ — Deposit in China Everbright Bank which matures on November 22, 2023 with an annual interest rate of 5.43% $ 3,000 $ — Deposit in China Everbright Bank which matures on January 5, 2024 with an annual interest rate of 5.38% $ 3,001 $ — $ 118,834 $ 172,448 |
Fair Value, by Balance Sheet Grouping | Quoted Prices in Active Markets for Identical Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total As of September 30, 2023: Assets Cash and cash equivalents $ 207,101 $ — $ — $ 207,101 Short-term investments 21,844 — — 21,844 $ 228,945 $ — $ — $ 228,945 As of December 31, 2022: Assets Cash and cash equivalents $ 247,951 $ — $ — $ 247,951 Short-term investments 20,209 — — 20,209 $ 268,160 $ — $ — $ 268,160 |
Basic and Diluted Net Income per Common Share | Basic and diluted net income per share of common stock are calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 30,994 $ 27,076 $ 73,554 $ 36,381 Less: Net income attributable to non-controlling interests 5,315 6,072 13,905 8,927 Net income available to common stockholders, basic $ 25,679 $ 21,004 $ 59,649 $ 27,454 Less: Dilutive effect arising from stock-based awards by ACM Shanghai 461 321 1,338 465 Net income available to common stockholders, diluted $ 25,218 $ 20,683 $ 58,311 $ 26,989 Weighted average shares outstanding, basic 60,219,218 59,360,790 59,953,144 59,123,895 Effect of dilutive securities 5,231,723 6,251,875 4,880,907 6,505,378 Weighted average shares outstanding, diluted 65,450,941 65,612,665 64,834,051 65,629,273 Net income per share of common stock: Basic $ 0.43 $ 0.35 $ 0.99 $ 0.46 Diluted $ 0.39 $ 0.32 $ 0.90 $ 0.41 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Revenue Information | The Company assesses revenues based upon the nature or type of goods or services it provides and the geographic location of the related businesses. The following tables present disaggregated revenue information: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Single wafer cleaning, Tahoe and semi-critical cleaning equipment $ 132,417 $ 99,720 $ 281,559 $ 198,336 ECP (front-end and packaging), furnace and other technologies 25,508 24,521 71,223 57,269 Advanced packaging (excluding ECP), services & spares 10,644 9,468 34,620 24,685 Total Revenue By Product Category $ 168,569 $ 133,709 $ 387,402 $ 280,290 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Mainland China $ 168,302 $ 131,180 $ 375,528 $ 273,585 Other regions 267 2,529 11,874 6,705 $ 168,569 $ 133,709 $ 387,402 $ 280,290 |
Accounts Receivables and Contract Liabilities | Below are the accounts receivables and contract liabilities balances as of: September 30, December 31, Accounts receivable $ 248,477 $ 182,936 Advances from customers 191,393 153,773 Deferred revenue 4,747 4,174 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable | At September 30, 2023 and December 31, 2022, accounts receivable, net consisted of the following: September 30, December 31, Accounts receivable $ 252,198 $ 182,936 Less: Allowance for credit losses (3,721) - $ 248,477 $ 182,936 September 30, Cumulative effect of change in accounting principle under ASC 326, before tax, as of January 1, 2023 $ (2,099) Provision for credit loss expense (1,622) Allowance for credit losses, before tax, as of September 30, 2023 $ (3,721) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | At September 30, 2023 and December 31, 2022, inventories, net consisted of the following: September 30, December 31, Raw materials $ 202,048 $ 167,135 Work-in-process 83,386 79,126 Finished goods 221,997 146,911 Total inventory $ 507,431 $ 393,172 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | At September 30, 2023 and December 31, 2022, property, plant and equipment consisted of the following: September 30, December 31, Buildings and plants $ 81,991 $ 35,864 Manufacturing equipment 18,714 9,298 Office equipment 4,646 3,691 Transportation equipment 397 407 Leasehold improvement 7,684 7,173 Total cost 113,432 56,433 Less: Total accumulated depreciation and amortization (15,123) (10,047) Construction in progress 92,573 36,489 Total property, plant and equipment, net $ 190,882 $ 82,875 |
LAND USE RIGHT, NET (Tables)
LAND USE RIGHT, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Land Use Right, Net [Abstract] | |
Land Use Rights | A summary of land use right is as follows: September 30, December 31, Land use right purchase amount $ 8,875 $ 9,149 Less: accumulated amortization (576) (457) Land use right, net $ 8,299 $ 8,692 |
Annual Amortization of Land Use Right | The annual amortization of land use right is as follows: Year ending December 31, Remainder of 2023 $ 44 2024 178 2025 178 2026 178 2027 178 2028 178 2029 and thereafter 7,365 Total $ 8,299 |
OTHER LONG-TERM ASSETS (Tables)
OTHER LONG-TERM ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Other Long-term Assets | At September 30, 2023 and December 31, 2022, other long-term assets consisted of the following: September 30, December 31, Prepayment for property, plant and equipment $ 1,286 $ 704 Lease deposit 796 393 Security deposit for land use right 687 708 Prepayment for property - Zhangjiang New Building — 47,251 Others 1,082 1,209 Total other long-term assets $ 3,851 $ 50,265 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | At September 30, 2023 and December 31, 2022, s hort-term borrowings consisted of the following: September 30, December 31, Line of credit up to RMB 150,000 from China Everbright Bank, 1)due on August 17, 2023 with an annual interest rate of 3.40% $ - $ 8,616 2)due on September 1, 2023 with an annual interest rate of 3.60% - 8,616 3)due on December 16, 2023 with an annual interest rate of 3.00% 4,179 4,308 4)due on August 29, 2024 with an annual interest rate of 3.00% 2,429 - Line of credit up to RMB 100,000 from Bank of Communications, 1)due on August 11, 2023 with an annual interest rate of 3.60% - 8,616 2)due on September 5, 2023 with an annual interest rate of 3.50% - 5,744 Line of credit up to RMB 40,000 from Bank of China, 1)due on August 26, 2023 with an annual interest rate of 3.15%. - 5,744 Line of credit up to RMB 40,000 from Bank of China, 1)due on September 6, 2024 with an annual interest rate of 2.87% 5,572 - Line of credit up to RMB 100,000 from China Merchants Bank, 1)due on July 21, 2023 with an annual interest rate of 3.50%. - 1,292 2)due on July 27, 2023 with an annual interest rate of 3.50%. - 1,292 3)due on August 1, 2023 with an annual interest rate of 3.50%. - 1,292 4)due on August 3, 2023 with an annual interest rate of 3.50%. - 1,292 5)due on August 7, 2023 with an annual interest rate of 3.50%. - 1,293 6)due on August 14, 2023 with an annual interest rate of 3.50%. - 1,293 7)due on August 15, 2023 with an annual interest rate of 3.50%. - 1,293 8)due on August 21, 2023 with an annual interest rate of 3.50%. - 1,005 9)due on August 28, 2023 with an annual interest rate of 3.50%. - 1,292 10)due on September 13, 2023 with an annual interest rate of 3.50%. - 1,292 11)due on September 20, 2023 with an annual interest rate of 3.50%. - 1,293 12)due on October 7, 2023 with an annual interest rate of 3.50% 418 431 Line of credit up to RMB 200,000 from China Merchants Bank, 1)due on August 7, 2024 with an annual interest rate of 3.00%. 1,254 - - 2)due on August 8, 2024 with an annual interest rate of 3.00%. 1,254 - 3)due on August 9, 2024 with an annual interest rate of 3.00%. 1,254 - 4)due on August 14, 2024 with an annual interest rate of 3.00%. 1,254 - 5)due on August 17, 2024 with an annual interest rate of 3.00%. 1,254 - 6)due on August 20, 2024 with an annual interest rate of 3.00%. 1,254 - 7)due on August 21, 2024 with an annual interest rate of 3.00%. 1,254 - 8)due on August 22, 2024 with an annual interest rate of 3.00%. 1,254 - 9)due on August 24, 2024 with an annual interest rate of 3.00%. 1,254 - 10)due on August 27, 2024 with an annual interest rate of 3.00%. 1,254 - 11)due on August 29, 2024 with an annual interest rate of 3.00%. 1,254 - 12)due on August 30, 2024 with an annual interest rate of 3.00%. 1,254 - 13)due on September 3, 2024 with an annual interest rate of 3.00%. 1,253 - 14)due on September 5, 2024 with an annual interest rate of 3.00%. 1,253 - 15)due on September 6, 2024 with an annual interest rate of 3.00%. 1,253 - 16)due on September 10, 2024 with an annual interest rate of 3.00%. 1,253 - 17)due on September 12, 2024 with an annual interest rate of 3.00%. 1,253 - Total $ 33,911 $ 56,004 |
OTHER PAYABLES AND ACCRUED EX_2
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Other Payables and Accrued Expenses | At September 30, 2023 and December 31, 2022, other payables and accrued expenses consisted of the following: September 30, December 31, Accrued commissions $ 17,663 $ 14,890 Accrued warranty 10,448 8,780 Accrued payroll 13,713 12,201 Accrued professional fees 482 724 Accrued machine testing fees 529 1,215 Accrued machine sales fees 5,103 5,874 Accrued Lingang construction fees 27,259 738 Others 5,203 7,779 Total $ 80,400 $ 52,201 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 899 $ 776 $ 2,639 $ 2,133 Short-term lease cost 267 162 859 550 Total lease cost $ 1,166 $ 938 $ 3,498 $ 2,683 |
Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases $ 899 $ 776 $ 2,639 $ 2,133 |
Maturities of Outstanding Lease Liabilities for Operating Leases | As of September 30, 2023, maturities of outstanding lease liabilities for all operating leases were as follows: December 31, Remainder of 2023 $ 884 2024 2,829 2025 1,262 2026 1,138 2027 1,137 2028 595 Total lease payments $ 7,845 Less: Interest (661) Present value of lease liabilities $ 7,184 |
Weighted Average Remaining Lease Terms and Discount Rates for Operating Leases | The weighted average remaining lease terms and discount rates for all operating leases were as follows: September 30, December 31, Remaining lease term and discount rate: Weighted average remaining lease term (years) 3.64 2.00 Weighted average discount rate 3.94 % 4.25 % |
LONG-TERM BORROWINGS (Tables)
LONG-TERM BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Long-Term Debt, by Current and Noncurrent [Abstract] | |
Long-Term Borrowings | At September 30, 2023 and December 31, 2022, long-term borrowings consisted of the following: September 30, December 31, Loan from China Merchants Bank $ 13,595 $ 15,265 Loans from Bank of China 5,015 5,744 Loan from Bank of Shanghai 13,930 — Loan from China CITIC Bank 13,930 — Less: Current portion (6,717) (2,322) $ 39,753 $ 18,687 |
Principal Payments for Outstanding Long-Term Loan | Scheduled principal payments for the outstanding long-term loan, including the current portion, as of September 30, 2023 are as follows: Year ending December 31 Reminder of 2023 $ 482 2024 6,664 2025 29,591 2026 1,830 2027 1,903 Thereafter 6,000 $ 46,470 |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other long-term liabilities represent government subsidies received from mainland China governmental authorities for development and commercialization of certain technology but not yet recognized. At September 30, 2023 and December 31, 2022, other long-term liabilities consisted of the following unearned government subsidies: September 30, 2023 December 31, 2022 Subsidies to Stress Free Polishing project, commenced in 2008 and 2017 $ 498 $ 611 Subsidies to Electro Copper Plating project, commenced in 2014 96 119 Subsidies to other cleaning tools, commenced in 2020 658 785 Subsidies to SW Lingang R&D development, commenced in 2021 3,466 4,266 Subsidies to CO2 Technology, commenced in 2022 441 965 Other 947 575 Total $ 6,106 $ 7,321 |
LONG-TERM INVESTMENT (Tables)
LONG-TERM INVESTMENT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Long-Term Investments [Abstract] | |
Long-Term Investment | Equity method investee: Initial investment dates Investment entity Percent ownership by ACM and subsidiaries Investment purchase price Ninebell Co., Ltd. ("Ninebell") September 2017 ACM 20% $ 1,200 Wooil Flucon Co. ("Wooil") August 2022 ACM Singapore 20% $ 1,000 Shengyi Semiconductor Technology Co., Ltd. (“Shengyi”) June 2019 ACM Shanghai 14% $ 109 Hefei Shixi Chanheng Integrated Circuit Industry Venture Capital Fund Partnership (LP) (“Hefei Shixi”) September 2019 ACM Shanghai 10% RMB 30,000 ($4,200) Equity method investee: September 30, December 31, Ninebell $ 5,476 $ 5,199 Wooil 1,004 1,011 Shengyi 1,798 1,168 Hefei Shixi 6,148 8,645 Subtotal 14,426 16,023 Investments accounted for using measurement alternative: Waferworks (Shanghai) Co., Ltd 1,392 1,436 Shengyi 846 — Other 5,642 — Total 22,306 17,459 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Components of Trading Securities | At September 30, 2023 and December 31, 2022, the components of short-term investments were as follows: September 30, December 31, Short-term investments listed in Shanghai Stock Exchange Cost $ 20,902 $ 14,779 Market value 21,844 20,209 |
Unrealized Gain (Loss) on Trading Securities | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Unrealized loss on short-term investments $ (1,319) $ (5,281) $ (4,428) $ (9,562) |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Balances and Transactions | The following tables reflect related party transactions in our condensed consolidated financial statements: Advances to related party September 30, December 31, Ninebell $ 1,164 $ 3,322 Accounts payable September 30, December 31, Ninebell $ 4,054 $ 10,526 Shengyi 3,630 3,942 Total $ 7,684 $ 14,468 Three Months Ended September 30, Nine Months Ended September 30, Purchase of materials 2023 2022 2023 2022 Ninebell $ 6,830 $ 9,834 $ 33,831 $ 27,500 Shengyi 1,122 2,298 3,801 3,760 Total $ 7,952 $ 12,132 $ 37,632 $ 31,260 Three Months Ended September 30, Nine Months Ended September 30, Service fee charged by 2023 2022 2023 2022 Shengyi $ 79 $ 277 $ 809 $ 315 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share Option Activities | The following table summarizes the Company’s employee share option activities during the nine months ended September 30, 2023: Number of Weighted Weighted Weighted Average Outstanding at December 31, 2022 9,211,641 $ 3.58 $ 8.24 6.36 years Granted 2,202,000 10.34 13.87 Exercised (680,319) 0.89 2.24 Forfeited/cancelled (44,560) 10.65 21.76 Outstanding at September 30, 2023 10,688,762 $ 5.15 $ 9.59 6.36 years Vested and exercisable at September 30, 2023 6,356,350 The following table summarizes the Company’s non-employee share option activities during the nine months ended September 30, 2023: Number of Weighted Weighted Weighted Outstanding at December 31, 2022 1,483,658 $ 0.38 $ 1.15 3.68 years Exercised (239,129) 0.24 0.56 Forfeited/cancelled (10,957) 0.22 0.50 Outstanding at September 30, 2023 1,233,572 $ 0.41 $ 1.27 2.85 years Vested and exercisable at September 30, 2023 1,226,072 The following table summarizes the stock option activities of the ACM Shanghai 2019 Subsidiary Stock Option Plan during the nine months ended September 30, 2023: Number of Weighted Weighted Weighted Outstanding at December 31, 2022 5,377,500 $ 0.23 $ 1.93 1.76 years Exercise (2,150,309) $ 0.20 $ 1.85 Forfeited/cancelled (92,308) $ 0.22 $ 1.85 Outstanding at September 30, 2023 3,134,883 $ 0.23 $ 1.90 1.10 years Vested and exercisable at September 30, 2023 492,308 The following table summarizes the ACM Shanghai 2023 Subsidiary Stock Option Plan’s stock option activities during the nine months ended September 30, 2023: Number of Option Shares in ACM Shanghai Weighted Weighted Weighted Outstanding at December 31, 2022 - $ — $ — 0.00 years Granted 10,648,500 $ 9.24 $ 7.10 Outstanding at September 30, 2023 10,648,500 $ 9.24 $ 7.10 3.34 years Vested and exercisable at September 30, 2023 - |
Assumptions Used to Determine Fair Value of Options Granted | The fair value of options granted to employees with a service period based condition is estimated on the grant date using the Black-Scholes valuation with following assumptions: Nine Months Ended Years ended December 31, 2022 Fair value of share of common stock (1) $11.85-$13.89 $16.83-$25.45 Expected term in years(2) 5.50-6.25 5.50-6.25 Volatility(3) 84.95%-86.45% 49.43%-50.87% Risk-free interest rate(4) 4.16%-4.17% 1.7%-3.04% (1) Equal to closing value on the grant date. (2) Expected term of share options is based on the average of the vesting period and the contractual term for each grant according to ASC 718, Compensation – Stock Compensation. (3) Volatility is calculated based on the historical volatility of ACM in the period equal to the expected term of each grant. (4) Risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the share options in effect at the time of grant. The fair value of options granted to employees with a service period based condition is estimated on the grant date using the Black-Scholes valuation with following assumptions: Nine Months Ended September 30, 2023 Fair value of share of common stock (1) RMB 105.27 Expected term in years (2) 1.5.-4.5 Volatility (3) 60.00%-60.60% Risk-free interest rate (4) 1.50%-2.75% (1) Equal to closing value on the grant date. (2) Expected term of share options is based on the average of the vesting period and the contractual term for each grant according to ASC 718. (3) Volatility is calculated based on the historical volatility of ACM Shanghai in the period equal to the expected term of each grant. (4) Risk-free interest rate is based on the yields of RMB deposit in mainland China with maturities similar to the expected term of the share options in effect at the time of grant. |
Summary of Components of Stock-based Compensation Expense | The following table summarizes the components of stock-based compensation expense included in the consolidated statements of operations and comprehensive income (loss): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock-based compensation expense: Cost of revenue $ 588 $ 130 $ 838 $ 383 Sales and marketing expense 2,543 349 3,405 1,277 Research and development expense 3,421 666 4,831 1,733 General and administrative expense 4,029 748 5,592 1,843 $ 10,581 $ 1,893 $ 14,666 $ 5,236 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock-based compensation expense by type: Employee stock option plan $ 2,352 $ 1,798 $ 6,345 $ 4,943 Non-employee stock option plan 12 12 35 35 2019 and 2023 Subsidiary stock option plan 8,217 83 8,286 258 $ 10,581 $ 1,893 $ 14,666 $ 5,236 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Benefit (Expense) | Income tax expense was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Total income tax expense $ (718) $ (10,470) $ (11,235) $ (14,138) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Long-Lived Assets by Geography | The balance of selected long-lived assets by geographic location as of September 30, 2023 and December 31, 2022 are presented in the following table: September 30, December 31, Long-lived assets by geographic location: Mainland China $ 196,597 $ 140,481 Korea 12,300 3,830 United States 1,319 10 Total $ 210,216 $ 144,321 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||||||
Nov. 30, 2021 USD ($) shares | May 31, 2023 shares | Mar. 31, 2022 | Dec. 31, 2020 USD ($) | Sep. 30, 2023 shares | Dec. 31, 2022 shares | Mar. 16, 2022 shares | Nov. 30, 2021 ¥ / shares shares | Nov. 08, 2017 | Aug. 31, 2017 | |
Employee Share Option | ||||||||||
Description of Business [Abstract] | ||||||||||
Exercise of stock options (in shares) | 680,319 | |||||||||
Class A Common Stock | ||||||||||
Description of Business [Abstract] | ||||||||||
Common stock outstanding (in shares) | 55,574,734 | 54,655,286 | ||||||||
Stock split ratio | 3 | |||||||||
Additional shares reserved for issuance as dividends (in shares) | 2 | |||||||||
Class B Common Stock | ||||||||||
Description of Business [Abstract] | ||||||||||
Common stock outstanding (in shares) | 5,021,811 | 5,021,811 | ||||||||
Additional shares reserved for issuance as dividends (in shares) | 2 | |||||||||
ACM Research (Shanghai), Inc. | ||||||||||
Description of Business [Abstract] | ||||||||||
Purchase of equity interest percentage | 8.30% | 18.36% | 18.77% | |||||||
Percentage of ownership after transaction | 82.10% | |||||||||
Name of subsidiaries | ACM Research (Shanghai), Inc. | |||||||||
Place and date of incorporation | Mainland China, May 2005 | |||||||||
Effective interest held as at | 82.10% | 82.50% | ||||||||
ACM Research (Shanghai), Inc. | Employee Share Option | ||||||||||
Description of Business [Abstract] | ||||||||||
Exercise of stock options (in shares) | 2,150,309 | |||||||||
ACM Research (Shanghai), Inc. | IPO | ||||||||||
Description of Business [Abstract] | ||||||||||
Offering of shares (in shares) | 43,355,753 | |||||||||
Percentage amount of shares offered from shares outstanding | 10% | |||||||||
Common stock outstanding (in shares) | 433,557,100 | |||||||||
Share price (in RMB per share) | ¥ / shares | ¥ 85 | |||||||||
Proceeds from issuance initial public offering | $ | $ 545,512 | |||||||||
Percentage of ownership after transaction | 82.50% | |||||||||
ACM Research (Wuxi), Inc. | ||||||||||
Description of Business [Abstract] | ||||||||||
Name of subsidiaries | ACM Research (Wuxi), Inc. | |||||||||
Place and date of incorporation | Mainland China, July 2011 | |||||||||
Effective interest held as at | 82.10% | 82.50% | ||||||||
CleanChip Technologies Limited | ||||||||||
Description of Business [Abstract] | ||||||||||
Proceeds from divestiture of interest in consolidated subsidiaries | $ | $ 3,500 | |||||||||
Name of subsidiaries | CleanChip Technologies Limited | |||||||||
Place and date of incorporation | Hong Kong, June 2017 | |||||||||
Effective interest held as at | 82.10% | 82.50% | ||||||||
ACM Research Korea CO., LTD. | ||||||||||
Description of Business [Abstract] | ||||||||||
Name of subsidiaries | ACM Research Korea CO., LTD. | |||||||||
Place and date of incorporation | Korea, December 2017 | |||||||||
Effective interest held as at | 82.10% | 82.50% | ||||||||
ACM Research (Lingang), Inc. (1) | ||||||||||
Description of Business [Abstract] | ||||||||||
Purchase of equity interest percentage | 91.70% | |||||||||
Name of subsidiaries | ACM Research (Lingang), Inc. (1) | |||||||||
Place and date of incorporation | Mainland China, March 2019 | |||||||||
Effective interest held as at | 82.10% | 82.50% | ||||||||
ACM Research (CA), Inc. | ||||||||||
Description of Business [Abstract] | ||||||||||
Name of subsidiaries | ACM Research (CA), Inc. | |||||||||
Place and date of incorporation | USA, April 2019 | |||||||||
Effective interest held as at | 82.10% | 82.50% | ||||||||
ACM Research (Cayman), Inc. | ||||||||||
Description of Business [Abstract] | ||||||||||
Name of subsidiaries | ACM Research (Cayman), Inc. | |||||||||
Place and date of incorporation | Cayman Islands, April 2019 | |||||||||
Effective interest held as at | 100% | 100% | ||||||||
ACM Research (Singapore) PTE. Ltd. | ||||||||||
Description of Business [Abstract] | ||||||||||
Name of subsidiaries | ACM Research (Singapore) PTE. Ltd. | |||||||||
Place and date of incorporation | Singapore, August 2021 | |||||||||
Effective interest held as at | 100% | 100% | ||||||||
ACM Research (Beijing), Inc. | ||||||||||
Description of Business [Abstract] | ||||||||||
Name of subsidiaries | ACM Research (Beijing), Inc. | |||||||||
Place and date of incorporation | Mainland China,, February 2022 | |||||||||
Effective interest held as at | 82.10% | 82.50% | ||||||||
Hanguk ACM CO., LTD. | ||||||||||
Description of Business [Abstract] | ||||||||||
Name of subsidiaries | Hanguk ACM CO., LTD. | |||||||||
Place and date of incorporation | Korea, March 2022 | |||||||||
Effective interest held as at | 100% | 100% | ||||||||
Yusheng Micro Semiconductor (Shanghai) Co., Ltd | ||||||||||
Description of Business [Abstract] | ||||||||||
Name of subsidiaries | Yusheng Micro Semiconductor (Shanghai) Co., Ltd | |||||||||
Place and date of incorporation | Mainland China, June 2023 | |||||||||
Effective interest held as at | 82.10% | 0% | ||||||||
ACM-Wooil Microelectronics (Shanghai) Co., Ltd | ||||||||||
Description of Business [Abstract] | ||||||||||
Name of subsidiaries | ACM-Wooil Microelectronics (Shanghai) Co., Ltd | |||||||||
Place and date of incorporation | Mainland China, June 2023 | |||||||||
Effective interest held as at | 59.40% | 0% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, New Restrictions by U.S. Department of Commerce for PRC-based Semiconductor Producers (Details) - Revenue Benchmark - Customer Concentration Risk | 12 Months Ended |
Dec. 31, 2022 | |
The Huali Huahong Group | |
New Restrictions by U.S. Department of Commerce for PRC-based Semiconductor Producers [Abstract] | |
Concentration risk, percentage | 18.20% |
Yangtze Memory Technologies Co. | |
New Restrictions by U.S. Department of Commerce for PRC-based Semiconductor Producers [Abstract] | |
Concentration risk, percentage | 10% |
Semiconductor Manufacturing International Corporation | |
New Restrictions by U.S. Department of Commerce for PRC-based Semiconductor Producers [Abstract] | |
Concentration risk, percentage | 15.60% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Change in Accounting Principles (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Stockholders' equity | $ 878,130 | $ 831,775 | $ 812,171 |
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Stockholders' equity | $ 152,306 | $ 126,627 | 94,426 |
Cumulative Effect, Period of Adoption, Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Stockholders' equity | (1,769) | ||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Stockholders' equity | $ (1,769) |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Cash and Cash Equivalents, at Carrying Value [Abstract] | |||||
Cash, cash equivalents and restricted cash and time deposits | $ 207,101 | $ 207,101 | $ 247,951 | ||
Short-term and long-term time deposits | 118,834 | 118,834 | 172,448 | ||
ACM Shanghai | |||||
Cash and Cash Equivalents, at Carrying Value [Abstract] | |||||
Cash payments for procurement of goods and services | 10,724 | $ 12,682 | 35,195 | $ 24,631 | |
United States | |||||
Cash and Cash Equivalents, at Carrying Value [Abstract] | |||||
Cash, cash equivalents and restricted cash and time deposits | 36,251 | 36,251 | 25,011 | ||
Mainland China | |||||
Cash and Cash Equivalents, at Carrying Value [Abstract] | |||||
Cash, cash equivalents and restricted cash and time deposits | 109,992 | 109,992 | 129,695 | ||
China Hong Kong | |||||
Cash and Cash Equivalents, at Carrying Value [Abstract] | |||||
Cash, cash equivalents and restricted cash and time deposits | 56,731 | 56,731 | 89,187 | ||
Korea | |||||
Cash and Cash Equivalents, at Carrying Value [Abstract] | |||||
Cash, cash equivalents and restricted cash and time deposits | 4,060 | 4,060 | 4,007 | ||
Singapore | |||||
Cash and Cash Equivalents, at Carrying Value [Abstract] | |||||
Cash, cash equivalents and restricted cash and time deposits | $ 67 | $ 67 | $ 51 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Summary of Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 207,101 | $ 247,951 |
Short-term investments | 21,844 | 20,209 |
Total assets | 228,945 | 268,160 |
Fair Value, Inputs, Level 1 | ||
Assets | ||
Cash and cash equivalents | 207,101 | 247,951 |
Short-term investments | 21,844 | 20,209 |
Total assets | 228,945 | 268,160 |
Fair Value, Inputs, Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | |
Short-term investments | 0 | |
Total assets | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Total assets | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Time Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Time Deposits [Abstract] | |||||
Time deposits | $ 118,834 | $ 118,834 | $ 172,448 | ||
Interest income, deposits with financial institutions | 867 | $ 929 | 2,779 | $ 2,468 | |
China Merchant Bank, Deposits, Maturing on January 29, 2023 | |||||
Time Deposits [Abstract] | |||||
Time deposits | 0 | $ 0 | 38,772 | ||
Time deposits, interest rate | 2.25% | ||||
China Everbright Bank, Deposit, Maturing on January 29, 2023 | |||||
Time Deposits [Abstract] | |||||
Time deposits | 0 | $ 0 | 14,360 | ||
Time deposits, interest rate | 2.25% | ||||
China Everbright Bank, Deposit, Maturing May 22, 2023 | |||||
Time Deposits [Abstract] | |||||
Time deposits | 0 | $ 0 | 3,000 | ||
Time deposits, interest rate | 5.07% | ||||
China Industrial Bank, Deposit, Maturing on January 30, 2023 | |||||
Time Deposits [Abstract] | |||||
Time deposits | 0 | $ 0 | 14,360 | ||
Time deposits, interest rate | 2.15% | ||||
China Merchant Bank, Deposit, Maturing January 29, 2024 | |||||
Time Deposits [Abstract] | |||||
Time deposits | 27,860 | $ 27,860 | 28,720 | ||
Time deposits, interest rate | 2.85% | ||||
Bank of Ningbo, Deposit, Maturing on February 17, 2024 | |||||
Time Deposits [Abstract] | |||||
Time deposits | 41,790 | $ 41,790 | 43,080 | ||
Time deposits, interest rate | 2.85% | ||||
Shanghai Pudong Development Bank, Deposit, Maturing October 20, 2025 | |||||
Time Deposits [Abstract] | |||||
Time deposits | 6,965 | $ 6,965 | 7,180 | ||
Time deposits, interest rate | 3.10% | ||||
Shanghai Pudong Development Bank, Deposit, Maturing November 14, 2025 | |||||
Time Deposits [Abstract] | |||||
Time deposits | 6,965 | $ 6,965 | 7,180 | ||
Time deposits, interest rate | 3.10% | ||||
Shanghai Pudong Development Bank, Deposit, Maturing December 8, 2025 | |||||
Time Deposits [Abstract] | |||||
Time deposits | 4,179 | $ 4,179 | 4,308 | ||
Time deposits, interest rate | 3.10% | ||||
Shanghai Pudong Development Bank, Deposit, Maturing December 15, 2025 | |||||
Time Deposits [Abstract] | |||||
Time deposits | 4,179 | $ 4,179 | 4,308 | ||
Time deposits, interest rate | 3.10% | ||||
Shanghai Pudong Development Bank, Deposit, Maturing December 30, 2025 | |||||
Time Deposits [Abstract] | |||||
Time deposits | 6,965 | $ 6,965 | 7,180 | ||
Time deposits, interest rate | 3.10% | ||||
China Industrial Bank, Deposit, Maturing January 30, 2026 | |||||
Time Deposits [Abstract] | |||||
Time deposits | 13,930 | $ 13,930 | 0 | ||
Time deposits, interest rate | 3.15% | ||||
China Everbright Bank, Deposit, Maturing November 22, 2023 | |||||
Time Deposits [Abstract] | |||||
Time deposits | 3,000 | $ 3,000 | 0 | ||
Time deposits, interest rate | 5.43% | ||||
China Everbright Bank, Deposit, Maturing January 5, 2024 | |||||
Time Deposits [Abstract] | |||||
Time deposits | $ 3,001 | $ 3,001 | $ 0 | ||
Time deposits, interest rate | 5.38% |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Basic and Diluted Net Income per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator [Abstract] | ||||
Net income | $ 30,994 | $ 27,076 | $ 73,554 | $ 36,381 |
Less: Net income attributable to non-controlling interests | 5,315 | 6,072 | 13,905 | 8,927 |
Net income available to common stockholders, basic | 25,679 | 21,004 | 59,649 | 27,454 |
Less: Dilutive effect arising from stock-based awards by ACM Shanghai | (461) | (321) | (1,338) | (465) |
Net income available to common stockholders, diluted | $ 25,218 | $ 20,683 | $ 58,311 | $ 26,989 |
Weighted average shares outstanding, basic (in shares) | 60,219,218 | 59,360,790 | 59,953,144 | 59,123,895 |
Effect of dilutive securities (in shares) | 5,231,723 | 6,251,875 | 4,880,907 | 6,505,378 |
Weighted average shares outstanding, diluted (in shares) | 65,450,941 | 65,612,665 | 64,834,051 | 65,629,273 |
Net income per common share [Abstract] | ||||
Basic (in dollars per share) | $ 0.43 | $ 0.35 | $ 0.99 | $ 0.46 |
Diluted (in dollars per share) | $ 0.39 | $ 0.32 | $ 0.90 | $ 0.41 |
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 1,757,605 | 1,993,050 | 4,099,228 | 1,897,050 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Concentration of Credit Risk (Details) - Customer Concentration Risk - customer | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue Benchmark | Two Customers | |||||
Concentration of Credit Risk [Abstract] | |||||
Number of major customers | 2 | ||||
Concentration risk, percentage | 53.20% | ||||
Revenue Benchmark | Three Customers | |||||
Concentration of Credit Risk [Abstract] | |||||
Number of major customers | 3 | 3 | 3 | ||
Concentration risk, percentage | 61.40% | 4,880% | 5,010% | ||
Accounts Receivable | Two Customers | |||||
Concentration of Credit Risk [Abstract] | |||||
Number of major customers | 2 | ||||
Concentration risk, percentage | 42.60% | ||||
Accounts Receivable | Three Customers | |||||
Concentration of Credit Risk [Abstract] | |||||
Number of major customers | 3 | ||||
Concentration risk, percentage | 46.10% |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregated Revenue Information [Abstract] | ||||
Revenue (note 3) | $ 168,569 | $ 133,709 | $ 387,402 | $ 280,290 |
Mainland China | ||||
Disaggregated Revenue Information [Abstract] | ||||
Revenue (note 3) | 168,302 | 131,180 | 375,528 | 273,585 |
Other regions | ||||
Disaggregated Revenue Information [Abstract] | ||||
Revenue (note 3) | 267 | 2,529 | 11,874 | 6,705 |
Single wafer cleaning, Tahoe and semi-critical cleaning equipment | ||||
Disaggregated Revenue Information [Abstract] | ||||
Revenue (note 3) | 132,417 | 99,720 | 281,559 | 198,336 |
ECP (front-end and packaging), furnace and other technologies | ||||
Disaggregated Revenue Information [Abstract] | ||||
Revenue (note 3) | 25,508 | 24,521 | 71,223 | 57,269 |
Advanced packaging (excluding ECP), services & spares | ||||
Disaggregated Revenue Information [Abstract] | ||||
Revenue (note 3) | $ 10,644 | $ 9,468 | $ 34,620 | $ 24,685 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Accounts Receivables and Contract Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable | $ 248,477 | $ 182,936 |
Advances from customers | 191,393 | 153,773 |
Deferred revenue | $ 4,747 | $ 4,174 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Advances from customers | $ 42,340 | $ 88,888 |
First-Tools | ||
Disaggregation of Revenue [Line Items] | ||
Advances from customers | $ 37,600 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Accounts Receivable [Abstract] | ||
Accounts receivable | $ 252,198 | $ 182,936 |
Less: Allowance for credit losses | (3,721) | 0 |
Total | 248,477 | $ 182,936 |
Accounts receivable [Abstract] | ||
Increase accounts receivable | 65,500 | |
Increase in revenue | (107,100) | |
Allowance for doubtful of accounts | $ 3,721 |
ACCOUNTS RECEIVABLE - Summary o
ACCOUNTS RECEIVABLE - Summary of Allowance For Doubtful Accounts (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Provision for credit losses | $ (1,622) |
Ending balance | (3,721) |
Cumulative Effect, Period of Adoption, Adjustment | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ (2,099) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Inventory, Net [Abstract] | |||||
Raw materials | $ 202,048 | $ 202,048 | $ 167,135 | ||
Work-in-process | 83,386 | 83,386 | 79,126 | ||
Finished goods | 221,997 | 221,997 | 146,911 | ||
Total inventory | 507,431 | 507,431 | 393,172 | ||
Increase in raw materials and work in process | 39,200 | ||||
Increase in finished goods | $ 75,100 | ||||
Inventory impairment, period | 3 years | ||||
Inventory write-down | 1,807 | $ 1,157 | $ 5,031 | $ 1,739 | |
First-tools, Customer Ownership | |||||
Inventory, Net [Abstract] | |||||
Finished goods | 140,788 | 140,788 | 123,169 | ||
First-tools, Not Customer Ownership | |||||
Inventory, Net [Abstract] | |||||
Finished goods | $ 38,763 | $ 38,763 | $ 0 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Feb. 28, 2023 USD ($) | Feb. 28, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Jan. 31, 2022 USD ($) | Jan. 31, 2022 CNY (¥) | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||||||||
Property cost | $ 113,432 | $ 113,432 | $ 56,433 | ||||||
Less: Total accumulated depreciation and amortization | (15,123) | (15,123) | (10,047) | ||||||
Construction in progress | 92,573 | 92,573 | 36,489 | ||||||
Total property, plant and equipment, net | 190,882 | 190,882 | 82,875 | ||||||
Depreciation and amortization expense | 2,023 | $ 897 | 5,077 | $ 3,281 | |||||
Buildings and plants | |||||||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||||||
Property cost | 81,991 | 81,991 | 35,864 | ||||||
Buildings and plants | ACM Lingang | |||||||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||||||
Property cost | $ 47,201 | ¥ 338,848 | $ 34,790 | ¥ 263,979 | |||||
Manufacturing equipment | |||||||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||||||
Property cost | 18,714 | 18,714 | 9,298 | ||||||
Office equipment | |||||||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||||||
Property cost | 4,646 | 4,646 | 3,691 | ||||||
Transportation equipment | |||||||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||||||
Property cost | 397 | 397 | 407 | ||||||
Leasehold improvement | |||||||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||||||
Property cost | $ 7,684 | $ 7,684 | $ 7,173 |
LAND USE RIGHT, NET - Summary o
LAND USE RIGHT, NET - Summary of Land Use Right (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Land Use Right, Net [Abstract] | ||
Land use right purchase amount | $ 8,875 | $ 9,149 |
Less: accumulated amortization | (576) | (457) |
Land use right, net | $ 8,299 | $ 8,692 |
LAND USE RIGHT, NET - Narrative
LAND USE RIGHT, NET - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2020 | Jul. 31, 2020 ft² | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Amortization | $ | $ 44 | $ 45 | $ 136 | $ 144 | ||
ACM Research (Lingang), Inc. (1) | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Right to use land lease term | 50 years | |||||
Area for development and production center | ft² | 1,000,000 |
LAND USE RIGHT, NET - Summary_2
LAND USE RIGHT, NET - Summary of Future Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Annual Amortization of Land use Right [Abstract] | ||
Remainder of 2023 | $ 44 | |
2024 | 178 | |
2025 | 178 | |
2026 | 178 | |
2027 | 178 | |
2028 | 178 | |
2029 and thereafter | 7,365 | |
Land use right, net | $ 8,299 | $ 8,692 |
OTHER LONG-TERM ASSETS - Summar
OTHER LONG-TERM ASSETS - Summary of Other Long-term Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Prepayment for property, plant and equipment | $ 1,286 | $ 704 |
Lease deposit | 796 | 393 |
Security deposit for land use right | 687 | 708 |
Prepayment for property - Zhangjiang New Building | 0 | 47,251 |
Others | 1,082 | 1,209 |
Total other long-term assets | $ 3,851 | $ 50,265 |
OTHER LONG-TERM ASSETS - Narrat
OTHER LONG-TERM ASSETS - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property cost | $ 113,432 | $ 56,433 |
Buildings and plants | ||
Property, Plant and Equipment [Line Items] | ||
Property cost | $ 81,991 | $ 35,864 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Short-Term Borrowings [Abstract] | ||||||||
Short-term debt | $ 33,911 | $ 56,004 | ||||||
Interest expense related to short-term borrowings | $ 364 | $ 201 | $ 1,338 | $ 326 | ||||
Line of Credit up to RMB 150,000 from China Everbright Bank | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 150,000 | ¥ 150,000 | ||||||
Line Of Credit, due on August 17,2023 with an annual interest rate of 3.40% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.40% | 3.40% | ||||||
Short-term debt | 0 | 8,616 | ||||||
Line Of Credit, due on September 1,2023 with an annual interest rate of 3.60% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.60% | 3.60% | ||||||
Short-term debt | 0 | 8,616 | ||||||
Line of Credit, due on December 16, 2023 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 4,179 | 4,308 | ||||||
Line of credit, due on December 16, 2023 with an annual Interest rate of 3.00 percent | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 2,429 | 0 | ||||||
Line of Credit up to RMB 100,000 from Bank of Communications, | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 100,000 | 100,000 | ||||||
Line of Credit, due on August 11,2023 with an annual interest rate of 3.60% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.60% | 3.60% | ||||||
Short-term debt | 0 | 8,616 | ||||||
Line of Credit, due on September 5,2023 with an annual interest rate of 3.50% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.50% | 3.50% | ||||||
Short-term debt | 0 | 5,744 | ||||||
Line of Credit up to RMB 40,000 from Bank of China, | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 40,000 | 40,000 | ||||||
Line of Credit, due on August 26,2023 with an annual interest rate of 3.15%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.15% | 3.15% | ||||||
Short-term debt | 0 | 5,744 | ||||||
Line of Credit, due on September 6, 2024 with an annual interest rate of 2.87%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 40,000 | 40,000 | ||||||
Line of credit facility, interest rate during period | 2.87% | 2.87% | ||||||
Short-term debt | 5,572 | 0 | ||||||
Line of Credit up to RMB 100,000 from China Merchants Bank, | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 100,000 | 100,000 | ||||||
Line of Credit, due on July 21,2023 with an annual interest rate of 3.50%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.50% | 3.50% | ||||||
Short-term debt | 0 | 1,292 | ||||||
Line of Credit, due on July 27,2023 with an annual interest rate of 3.50%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.50% | 3.50% | ||||||
Short-term debt | 0 | 1,292 | ||||||
Line of Credit, due on August 1,2023 with an annual interest rate of 3.50%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.50% | 3.50% | ||||||
Short-term debt | 0 | 1,292 | ||||||
Line of Credit, due on August 3,2023 with an annual interest rate of 3.50%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.50% | 3.50% | ||||||
Short-term debt | 0 | 1,292 | ||||||
Line of Credit, due on August 7,2023 with an annual interest rate of 3.50%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.50% | 3.50% | ||||||
Short-term debt | 0 | 1,293 | ||||||
Line of Credit, due on August 14,2023 with an annual interest rate of 3.50%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.50% | 3.50% | ||||||
Short-term debt | 0 | 1,293 | ||||||
Line of Credit, due on August 15,2023 with an annual interest rate of 3.50%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.50% | 3.50% | ||||||
Short-term debt | 0 | 1,293 | ||||||
Line of Credit, due on August 21,2023 with an annual interest rate of 3.50%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.50% | 3.50% | ||||||
Short-term debt | 0 | 1,005 | ||||||
Line of Credit, due on August 28,2023 with an annual interest rate of 3.50%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.50% | 3.50% | ||||||
Short-term debt | 0 | 1,292 | ||||||
Line of Credit, due on September 13,2023 with an annual interest rate of 3.50%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.50% | 3.50% | ||||||
Short-term debt | 0 | 1,292 | ||||||
Line of Credit, due on September 20,2023 with an annual interest rate of 3.50%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.50% | 3.50% | ||||||
Short-term debt | 0 | 1,293 | ||||||
Line of Credit, due on October 7, 2023 with an annual interest rate of 3.50%. | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3.50% | 3.50% | ||||||
Short-term debt | 418 | 431 | ||||||
Line of Credit up to RMB 200,000 from China Merchants Bank | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 200,000 | ¥ 200,000 | ||||||
Line of Credit, China Merchants Bank, due on August 7, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,254 | 0 | ||||||
Line of Credit, China Merchants Bank, due on August 8, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,254 | 0 | ||||||
Line of Credit, China Merchants Bank, due on August 9, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,254 | 0 | ||||||
Line of Credit, China Merchants Bank, due on August 14, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,254 | 0 | ||||||
Line of Credit, China Merchants Bank, due on August 17, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,254 | 0 | ||||||
Line of Credit, China Merchants Bank, due on August 20, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,254 | 0 | ||||||
Line of Credit, China Merchants Bank, due on August 21, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,254 | 0 | ||||||
Line of Credit, China Merchants Bank, due on August 22, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,254 | 0 | ||||||
Line of Credit, China Merchants Bank, due on August 24, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,254 | 0 | ||||||
Line of Credit, China Merchants Bank, due on August 27, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,254 | 0 | ||||||
Line of Credit, China Merchants Bank, due on August 29, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,254 | 0 | ||||||
Line of Credit, China Merchants Bank, due on August 30, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,254 | 0 | ||||||
Line of Credit, China Merchants Bank, due on September 3, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,253 | 0 | ||||||
Line of Credit, China Merchants Bank, due on September 5, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,253 | 0 | ||||||
Line of Credit, China Merchants Bank, due on September 6, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,253 | 0 | ||||||
Line of Credit, China Merchants Bank, due on September 10, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | 1,253 | 0 | ||||||
Line of Credit, China Merchants Bank, due on September 12, 2024 with an annual interest rate of 3.00% | ||||||||
Short-Term Borrowings [Abstract] | ||||||||
Line of credit facility, interest rate during period | 3% | 3% | ||||||
Short-term debt | $ 1,253 | $ 0 |
OTHER PAYABLES AND ACCRUED EX_3
OTHER PAYABLES AND ACCRUED EXPENSES - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued commissions | $ 17,663 | $ 14,890 |
Accrued warranty | 10,448 | 8,780 |
Accrued payroll | 13,713 | 12,201 |
Accrued professional fees | 482 | 724 |
Accrued machine testing fees | 529 | 1,215 |
Accrued machine sales fees | 5,103 | 5,874 |
Accrued Lingang construction fees | 27,259 | 738 |
Others | 5,203 | 7,779 |
Other payables and accrued expenses (note 10) | $ 80,400 | $ 52,201 |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Components of lease expense [Abstract] | ||||
Operating lease cost | $ 899 | $ 776 | $ 2,639 | $ 2,133 |
Short-term lease cost | 267 | 162 | 859 | 550 |
Total lease cost | $ 1,166 | $ 938 | $ 3,498 | $ 2,683 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities [Abstract] | ||||
Operating cash outflow from operating leases | $ 899 | $ 776 | $ 2,639 | $ 2,133 |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Maturities of outstanding lease liabilities [Abstract] | |
Remainder of 2023 | $ 884 |
2024 | 2,829 |
2025 | 1,262 |
2026 | 1,138 |
2027 | 1,137 |
2028 | 595 |
Total lease payments | 7,845 |
Less: Interest | (661) |
Present value of lease liabilities | $ 7,184 |
LEASES - Weighted Average Remai
LEASES - Weighted Average Remaining Lease Term (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Description [Abstract] | ||
Weighted average remaining lease term (years) | 3 years 7 months 20 days | 2 years |
Weighted average discount rate | 3.94% | 4.25% |
LONG-TERM BORROWINGS - Summary
LONG-TERM BORROWINGS - Summary of Long-term Borrowings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) investor intallment installment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Long-Term Borrowings [Abstract] | |||||
Long-term debt | $ 46,470 | $ 46,470 | $ 21,009 | ||
Less: Current portion | (6,717) | (6,717) | (2,322) | ||
Long-term Borrowings | 39,753 | 39,753 | 18,687 | ||
Long-term debt | 46,470 | 46,470 | 21,009 | ||
Long-term debt, fair value | 43,151 | 43,151 | 18,538 | ||
Interest costs incurred | 276 | $ 218 | 646 | $ 720 | |
Interest expense, long-term debt | 646 | 660 | |||
Capitalized interest charged as other long-term assets | 0 | $ 60 | |||
China Merchants Bank | |||||
Long-Term Borrowings [Abstract] | |||||
Long-term debt | 13,595 | $ 13,595 | 15,265 | ||
Number of installments for loan repayable | intallment | 120 | ||||
Line of credit facility, interest rate during period | 3.95% | ||||
Long-term debt | 13,595 | $ 13,595 | 15,265 | ||
Bank of China | |||||
Long-Term Borrowings [Abstract] | |||||
Long-term debt | 5,015 | $ 5,015 | 5,744 | ||
Number of installments for loan repayable | installment | 6 | ||||
Line of credit facility, interest rate during period | 2.60% | ||||
Long-term debt | 5,015 | $ 5,015 | 5,744 | ||
Bank of Shanghai | |||||
Long-Term Borrowings [Abstract] | |||||
Long-term debt | 13,930 | $ 13,930 | 0 | ||
Line of credit facility, interest rate during period | 2.85% | ||||
Long-term debt | 13,930 | $ 13,930 | 0 | ||
Citic Bank | |||||
Long-Term Borrowings [Abstract] | |||||
Long-term debt | 13,930 | $ 13,930 | 0 | ||
Number of installments for loan repayable | investor | 4 | ||||
Line of credit facility, interest rate during period | 3.40% | ||||
Long-term debt | $ 13,930 | $ 13,930 | $ 0 |
LONG-TERM BORROWINGS - Summar_2
LONG-TERM BORROWINGS - Summary of Scheduled Principal Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Principal Payments of Long-Term Loan [Abstract] | ||
2023 | $ 482 | |
2024 | 6,664 | |
2025 | 29,591 | |
2026 | 1,830 | |
2027 | 1,903 | |
Thereafter | 6,000 | |
Long-term debt | $ 46,470 | $ 21,009 |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | $ 6,106 | $ 7,321 |
Subsidies to Stress Free Polishing project, commenced in 2008 and 2017 | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 498 | 611 |
Subsidies to Electro Copper Plating project, commenced in 2014 | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 96 | 119 |
Subsidies to other cleaning tools, commenced in 2020 | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 658 | 785 |
Subsidies to SW Lingang R&D development, commenced in 2021 | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 3,466 | 4,266 |
Subsidies to CO2 Technology, commenced in 2022 | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | 441 | 965 |
Other | ||
Other Long-term Liabilities [Abstract] | ||
Other long-term liabilities | $ 947 | $ 575 |
LONG-TERM INVESTMENT - Narrativ
LONG-TERM INVESTMENT - Narrative (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 CNY (¥) | |
Investments [Abstract] | |||||
Income (loss) from equity method investments | $ (160) | $ 1,251 | $ 3,728 | $ 1,652 | |
Dividend from long-term investments (note 14) | 5,147 | 5,147 | $ 0 | ||
Equity Investment | Ninebell | |||||
Investments [Abstract] | |||||
Equity method investments | $ 1,200 | $ 1,200 | |||
Equity Investment | Ninebell | Class A Common Stock | |||||
Investments [Abstract] | |||||
Ownership percentage | 20% | 20% | 20% | ||
Equity Investment | Wooil | |||||
Investments [Abstract] | |||||
Equity method investments | $ 1,000 | $ 1,000 | |||
Equity Investment | Wooil | Class A Common Stock | |||||
Investments [Abstract] | |||||
Ownership percentage | 20% | 20% | 20% | ||
Equity Investment | Shengyi | |||||
Investments [Abstract] | |||||
Equity method investments | $ 109 | $ 109 | |||
Equity Investment | Shengyi | Class A Common Stock | |||||
Investments [Abstract] | |||||
Ownership percentage | 14% | 14% | 14% | ||
Equity Investment | Hefei Shixi | |||||
Investments [Abstract] | |||||
Equity method investments | $ 4,200 | $ 4,200 | ¥ 30,000 | ||
Equity Investment | Hefei Shixi | Class A Common Stock | |||||
Investments [Abstract] | |||||
Ownership percentage | 10% | 10% | 10% |
LONG-TERM INVESTMENT - Summary
LONG-TERM INVESTMENT - Summary of Long Term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Long-Term Investments [Line Items] | ||
Long-term investments (note 14) | $ 22,306 | $ 17,459 |
Equity method investee: | ||
Long-Term Investments [Line Items] | ||
Long-term investments (note 14) | 14,426 | 16,023 |
Equity method investee: | Ninebell | ||
Long-Term Investments [Line Items] | ||
Long-term investments (note 14) | 5,476 | 5,199 |
Equity method investee: | Wooil | ||
Long-Term Investments [Line Items] | ||
Long-term investments (note 14) | 1,004 | 1,011 |
Equity method investee: | Shengyi | ||
Long-Term Investments [Line Items] | ||
Long-term investments (note 14) | 1,798 | 1,168 |
Equity method investee: | Hefei Shixi | ||
Long-Term Investments [Line Items] | ||
Long-term investments (note 14) | 6,148 | 8,645 |
Investments accounted for using measurement alternative: | Shengyi | ||
Long-Term Investments [Line Items] | ||
Long-term investments (note 14) | 846 | 0 |
Investments accounted for using measurement alternative: | Waferworks (Shanghai) Co., Ltd | ||
Long-Term Investments [Line Items] | ||
Long-term investments (note 14) | 1,392 | 1,436 |
Investments accounted for using measurement alternative: | Other | ||
Long-Term Investments [Line Items] | ||
Long-term investments (note 14) | $ 5,642 | $ 0 |
SHORT-TERM INVESTMENTS - Narrat
SHORT-TERM INVESTMENTS - Narrative (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 CNY (¥) | Jul. 31, 2023 USD ($) | Jul. 31, 2023 CNY (¥) | Dec. 31, 2022 | Sep. 27, 2022 USD ($) | Sep. 27, 2022 CNY (¥) | Sep. 19, 2022 USD ($) | Sep. 19, 2022 CNY (¥) | |
Investments [Abstract] | ||||||||||||
Proceeds from selling short-term investments | $ 19,914 | $ 4,488 | ||||||||||
Realized gain from sale of short-term investments | $ 656 | $ 1,136 | 8,569 | 1,136 | ||||||||
Nuode Asset Management Company Limited | ||||||||||||
Investments [Abstract] | ||||||||||||
Investment in partnership | $ 4,196 | ¥ 30,000 | $ 22,160 | ¥ 160,000 | ||||||||
Ownership percentage in partnership | 18.75% | 18.75% | 18.75% | |||||||||
SMIC | ||||||||||||
Investments [Abstract] | ||||||||||||
Proceeds from selling short-term investments | 2,205 | 4,488 | 19,914 | 4,488 | ||||||||
Realized gain from sale of short-term investments | 656 | $ 1,136 | 8,569 | $ 1,136 | ||||||||
Huahong Semiconductor Limited | ||||||||||||
Investments [Abstract] | ||||||||||||
Investment in partnership | $ 13,930 | ¥ 100,000 | ||||||||||
Zhongiuxin Limited Company | ||||||||||||
Investments [Abstract] | ||||||||||||
Investment in partnership | $ 4,179 | $ 4,179 | ¥ 30,000 |
SHORT-TERM INVESTMENTS - Summar
SHORT-TERM INVESTMENTS - Summary of Trading Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Cost | $ 20,902 | $ 14,779 |
Market value | $ 21,844 | $ 20,209 |
SHORT-TERM INVESTMENTS - Summ_2
SHORT-TERM INVESTMENTS - Summary of Unrealized Gain (Loss) on Trading Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized loss on short-term investments | $ (1,319) | $ (5,281) | $ (4,428) | $ (9,562) |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Purchase of materials | $ 7,952 | $ 12,132 | $ 37,632 | $ 31,260 | |
Cost of revenue (note 16) | 80,055 | 67,742 | 190,263 | 150,480 | |
Ninebell | |||||
Related Party Transaction [Line Items] | |||||
Purchase of materials | 6,830 | 9,834 | 33,831 | 27,500 | |
Shengyi | |||||
Related Party Transaction [Line Items] | |||||
Purchase of materials | 1,122 | 2,298 | 3,801 | 3,760 | |
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Other receivables | 1,164 | 1,164 | $ 3,322 | ||
Accounts payable | 7,684 | 7,684 | 14,468 | ||
Related Party | Ninebell | |||||
Related Party Transaction [Line Items] | |||||
Other receivables | 1,164 | 1,164 | 3,322 | ||
Accounts payable | 4,054 | 4,054 | 10,526 | ||
Related Party | Shengyi | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable | 3,630 | 3,630 | $ 3,942 | ||
Cost of revenue (note 16) | $ 79 | $ 277 | $ 809 | $ 315 |
COMMON STOCK (Details)
COMMON STOCK (Details) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 vote $ / shares shares | Sep. 30, 2022 shares | Sep. 30, 2023 vote $ / shares shares | Sep. 30, 2022 shares | Dec. 31, 2022 shares | |||
Common Stock Class A | |||||||
Class of Stock Disclosures [Abstract] | |||||||
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Number of votes for each share entitled | vote | 1 | 1 | |||||
Common stock issued (in shares) | 55,574,734 | 55,574,734 | 54,655,286 | ||||
Common stock outstanding (in shares) | 55,574,734 | 55,574,734 | 54,655,286 | ||||
Class B Common Stock | |||||||
Class of Stock Disclosures [Abstract] | |||||||
Common stock, shares authorized (in shares) | 5,307,816 | 5,307,816 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||
Number of votes for each share entitled | vote | 20 | 20 | |||||
Shares converted | 1 | ||||||
Common stock issued (in shares) | 5,021,811 | 5,021,811 | 5,021,811 | ||||
Common stock outstanding (in shares) | 5,021,811 | 5,021,811 | 5,021,811 | ||||
Common Stock | Common Stock Class A | |||||||
Class of Stock Disclosures [Abstract] | |||||||
Exercise of stock options (in shares) | 623,244 | 231,710 | 919,448 | 763,584 | [1] | ||
Conversion of class B common stock to Class A common stock (in shares) | [1] | 1,002 | |||||
Common Stock | Class B Common Stock | |||||||
Class of Stock Disclosures [Abstract] | |||||||
Conversion of class B common stock to Class A common stock (in shares) | [1] | (1,002) | |||||
[1] (1) Share numbers as of December 31, 2021 have been adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in March 2022. See Note 2 for details. |
STOCK-BASED COMPENSATION, Share
STOCK-BASED COMPENSATION, Share Option Activities (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Employee Share Option | ||||
Number of Option Share [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 9,211,641 | 9,211,641 | ||
Granted (in shares) | 2,202,000 | |||
Exercised (in shares) | (680,319) | |||
Forfeited/cancelled (in shares) | (44,560) | |||
Outstanding, end of period (in shares) | 10,688,762 | 9,211,641 | ||
Vested and exercisable (in shares) | 6,356,350 | |||
Weighted Average Grant Date Fair Value | ||||
Outstanding at beginning of period (in dollars per share) | $ 3.58 | $ 3.58 | ||
Granted (in dollars per share) | 10.34 | |||
Exercised (in dollars per share) | 0.89 | |||
Forfeited/cancelled (in dollars per share) | 10.65 | |||
Outstanding at end of period (in dollars per share) | 5.15 | $ 3.58 | ||
Weighted Average Exercise Price | ||||
Outstanding, beginning of period (in dollars per share) | $ 8.24 | 8.24 | ||
Granted (in dollars per share) | 13.87 | |||
Exercised (in dollars per share) | 2.24 | |||
Forfeited/cancelled (in dollars per share) | 21.76 | |||
Outstanding, end of period (in dollars per share) | $ 9.59 | $ 8.24 | ||
Weighted Average Remaining Contractual Term | ||||
Weighted average remaining contractual term | 6 years 4 months 9 days | 6 years 4 months 9 days | ||
Unrecognized employee stock-based compensation expense | $ 30,703 | $ 16,009 | ||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 4 years 14 days | 3 years 10 months 24 days | ||
Employee Share Option | ACM Shanghai | ||||
Number of Option Share [Roll Forward] | ||||
Exercised (in shares) | (2,150,309) | |||
Weighted Average Grant Date Fair Value | ||||
Granted (in dollars per share) | $ 9.24 | |||
Weighted Average Exercise Price | ||||
Granted (in dollars per share) | $ 7.10 | |||
Employee Share Option | ACM Shanghai | 2019 Stock Option Incentive Plan | ||||
Number of Option Share [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 5,377,500 | 5,377,500 | ||
Exercised (in shares) | (2,150,309) | |||
Forfeited/cancelled (in shares) | (92,308) | |||
Outstanding, end of period (in shares) | 3,134,883 | 5,377,500 | ||
Vested and exercisable (in shares) | 492,308 | |||
Weighted Average Grant Date Fair Value | ||||
Outstanding at beginning of period (in dollars per share) | $ 0.23 | $ 0.23 | ||
Exercised (in dollars per share) | 0.20 | |||
Forfeited/cancelled (in dollars per share) | 0.22 | |||
Outstanding at end of period (in dollars per share) | 0.23 | $ 0.23 | ||
Weighted Average Exercise Price | ||||
Outstanding, beginning of period (in dollars per share) | $ 1.93 | 1.93 | ||
Exercised (in dollars per share) | 1.85 | |||
Forfeited/cancelled (in dollars per share) | 1.85 | |||
Outstanding, end of period (in dollars per share) | $ 1.90 | $ 1.93 | ||
Weighted Average Remaining Contractual Term | ||||
Weighted average remaining contractual term | 1 year 1 month 6 days | 1 year 9 months 3 days | ||
Employee Share Option | ACM Shanghai | 2023 Stock Option Incentive Plan | ||||
Number of Option Share [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 0 | 0 | ||
Granted (in shares) | 10,648,500 | |||
Outstanding, end of period (in shares) | 10,648,500 | 0 | ||
Vested and exercisable (in shares) | 0 | |||
Weighted Average Grant Date Fair Value | ||||
Outstanding at beginning of period (in dollars per share) | $ 0 | $ 0 | ||
Outstanding at end of period (in dollars per share) | 9.24 | $ 0 | ||
Weighted Average Exercise Price | ||||
Outstanding, beginning of period (in dollars per share) | $ 0 | 0 | ||
Outstanding, end of period (in dollars per share) | $ 7.10 | $ 0 | ||
Weighted Average Remaining Contractual Term | ||||
Weighted average remaining contractual term | 3 years 4 months 2 days | 0 years | ||
Non-Employee Stock Option | ||||
Number of Option Share [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 1,483,658 | 1,483,658 | ||
Exercised (in shares) | (239,129) | |||
Forfeited/cancelled (in shares) | (10,957) | |||
Outstanding, end of period (in shares) | 1,233,572 | 1,483,658 | ||
Vested and exercisable (in shares) | 1,226,072 | |||
Weighted Average Grant Date Fair Value | ||||
Outstanding at beginning of period (in dollars per share) | $ 0.38 | $ 0.38 | ||
Exercised (in dollars per share) | 0.24 | |||
Forfeited/cancelled (in dollars per share) | 0.22 | |||
Outstanding at end of period (in dollars per share) | 0.41 | $ 0.38 | ||
Weighted Average Exercise Price | ||||
Outstanding, beginning of period (in dollars per share) | $ 1.15 | 1.15 | ||
Exercised (in dollars per share) | 0.56 | |||
Forfeited/cancelled (in dollars per share) | 0.50 | |||
Outstanding, end of period (in dollars per share) | $ 1.27 | $ 1.15 | ||
Weighted Average Remaining Contractual Term | ||||
Weighted average remaining contractual term | 2 years 10 months 6 days | 3 years 8 months 4 days | ||
Unrecognized employee stock-based compensation expense | $ 21 | $ 55 | ||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 5 months 12 days | 1 year 2 months 12 days | ||
Non-Employee Stock Option | ACM Shanghai | 2019 Stock Option Incentive Plan | ||||
Weighted Average Remaining Contractual Term | ||||
Unrecognized employee stock-based compensation expense | $ 38 | $ 160 | ||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 9 months | 3 months | ||
Non-Employee Stock Option | ACM Shanghai | 2023 Stock Option Incentive Plan | ||||
Weighted Average Remaining Contractual Term | ||||
Unrecognized employee stock-based compensation expense | $ 90,197 | $ 0 | ||
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition | 2 years 4 months 2 days |
STOCK-BASED COMPENSATION, Assum
STOCK-BASED COMPENSATION, Assumptions Used to Determine Fair Value of Share Options Granted (Details) - Employee Share Option | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Sep. 30, 2023 $ / shares | Sep. 30, 2023 ¥ / shares | Dec. 31, 2022 $ / shares | |
Service Period Based | Minimum | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Fair value of common share (in dollars per share) | $ 11.85 | $ 16.83 | ||
Expected term | 5 years 6 months | 5 years 6 months | ||
Expected volatility rate | 49.43% | 84.95% | ||
Risk free interest rate | 1.70% | 4.16% | ||
Service Period Based | Maximum | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Fair value of common share (in dollars per share) | $ 13.89 | $ 25.45 | ||
Expected term | 6 years 3 months | 6 years 3 months | ||
Expected volatility rate | 50.87% | 86.45% | ||
Risk free interest rate | 3.04% | 4.17% | ||
2023 Stock Option Incentive Plan | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Fair value of common share (in dollars per share) | ¥ / shares | ¥ 105.27 | |||
2023 Stock Option Incentive Plan | Minimum | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected term | 1 year 6 months | |||
Expected volatility rate | 60% | |||
Risk free interest rate | 1.50% | |||
2023 Stock Option Incentive Plan | Maximum | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected term | 4 years 6 months | |||
Expected volatility rate | 60.60% | |||
Risk free interest rate | 2.75% |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock-based Compensation Expense [Abstract] | ||||
Stock-based compensation expense | $ 10,581 | $ 1,893 | $ 14,666 | $ 5,236 |
Employee Stock Option Plan | ||||
Stock-based Compensation Expense [Abstract] | ||||
Stock-based compensation expense | 2,352 | 1,798 | 6,345 | 4,943 |
Employee Stock Option Plan | ACM Shanghai | ||||
Stock-based Compensation Expense [Abstract] | ||||
Stock-based compensation expense | 8,217 | 83 | 8,286 | 258 |
Non-Employee Stock Option Plan | ||||
Stock-based Compensation Expense [Abstract] | ||||
Stock-based compensation expense | 12 | 12 | 35 | 35 |
Cost of revenue | ||||
Stock-based Compensation Expense [Abstract] | ||||
Stock-based compensation expense | 588 | 130 | 838 | 383 |
Sales and marketing expense | ||||
Stock-based Compensation Expense [Abstract] | ||||
Stock-based compensation expense | 2,543 | 349 | 3,405 | 1,277 |
Research and development expense | ||||
Stock-based Compensation Expense [Abstract] | ||||
Stock-based compensation expense | 3,421 | 666 | 4,831 | 1,733 |
General and administrative expense | ||||
Stock-based Compensation Expense [Abstract] | ||||
Stock-based compensation expense | $ 4,029 | $ 748 | $ 5,592 | $ 1,843 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 36 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) subsidiary | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Income Taxes [Abstract] | |||||
Federal statutory income tax rate | 21% | ||||
Income tax expense | $ 718 | $ 10,470 | $ 11,235 | $ 14,138 | |
Capitalized contract cost, amortization period | 15 years | 15 years | |||
Unrecognized tax benefits | $ 8,448 | $ 8,448 | $ 8,448 | ||
Unrecognized tax benefits that would impact effective tax rate | $ 6,178 | 6,178 | $ 6,178 | ||
Interest or penalties | $ 853 | $ 142 | |||
Number of subsidiaries | subsidiary | 4 | ||||
ACM Research (Shanghai), Inc. | |||||
Income Taxes [Abstract] | |||||
Foreign corporate tax rate | 15% | ||||
Foreign Tax Authority | |||||
Income Taxes [Abstract] | |||||
Foreign corporate tax rate | 25% | ||||
Effective period of preferential income tax rate | 3 years | ||||
Foreign Tax Authority | Minimum | |||||
Income Taxes [Abstract] | |||||
Foreign corporate tax rate | 15% | ||||
Foreign Tax Authority | Maximum | |||||
Income Taxes [Abstract] | |||||
Foreign corporate tax rate | 25% | ||||
Foreign Tax Authority | ACM Research (Shanghai), Inc. | |||||
Income Taxes [Abstract] | |||||
Foreign corporate tax rate | 12.50% | ||||
Foreign Tax Authority | ACM Research (Shanghai), Inc. | Minimum | |||||
Income Taxes [Abstract] | |||||
Foreign corporate tax rate | 15% | ||||
Foreign Tax Authority | ACM Research (Wuxi), Inc. | |||||
Income Taxes [Abstract] | |||||
Foreign corporate tax rate | 25% | ||||
Foreign Tax Authority | ACM Research (Beijing), Inc. | |||||
Income Taxes [Abstract] | |||||
Foreign corporate tax rate | 25% | ||||
Foreign Tax Authority | ACM Research (Lingang), Inc. (1) | |||||
Income Taxes [Abstract] | |||||
Foreign corporate tax rate | 15% |
INCOME TAXES - Summary of Incom
INCOME TAXES - Summary of Income Tax Benefit (Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Total income tax benefit (expense) | $ (718) | $ (10,470) | $ (11,235) | $ (14,138) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands, ¥ in Millions | 9 Months Ended | ||
Sep. 30, 2023 USD ($) legalProceeding | Sep. 30, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Contractual obligation | $ 41,205 | ||
Damages awarded | $ 62,600 | ¥ 450 | |
Land use rights period | 6 years | 6 years | |
Annual total taxes | $ 22,000 | ¥ 157.6 | |
Investments | $ 92,917 | $ 35,376 | |
Number of outstanding legal proceedings | legalProceeding | 0 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 1 | |
Geographic Areas, Long-Lived Assets [Abstract] | ||
Long-lived assets | $ 210,216 | $ 144,321 |
Mainland China | ||
Geographic Areas, Long-Lived Assets [Abstract] | ||
Long-lived assets | 196,597 | 140,481 |
Korea | ||
Geographic Areas, Long-Lived Assets [Abstract] | ||
Long-lived assets | 12,300 | 3,830 |
United States | ||
Geographic Areas, Long-Lived Assets [Abstract] | ||
Long-lived assets | $ 1,319 | $ 10 |
STATUTORY SURPLUS RESERVE (Deta
STATUTORY SURPLUS RESERVE (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Retained Earnings (Accumulated Deficit) [Abstract] | ||
Statutory surplus reserve | $ 16,881 | $ 16,881 |
ACM Research (Shanghai), Inc. | ||
Retained Earnings (Accumulated Deficit) [Abstract] | ||
Statutory surplus reserve | $ 16,881 | $ 16,881 |