Slide 1: Advanced Wet-Cleaning Tools for Leading Edge IC Fabs
Advanced Wet-Cleaning Tools for Leading Edge IC Fabs May 2020
Slide 2: Market Data and Non-GAAP Financial Measures notes
Market Data. Information presented below under “Who is ACM Research,” “ACM is Growing at a Rapid Pace,” “Investment Highlights” concerning ACM Research’s total addressable market presents a forecast based on information provided by Gartner, Inc. in its report “Forecast: Semiconductor Wafer Fab Manuf
Slide 3: Who is ACM Research?
Who is ACM Research? Mission Statement: To Become a Leading Global Provider of Semiconductor Capital Equipment • Best-in-class semiconductor wafer cleaning tools providing higher Clean yields and better efficiency at advanced fabs than conventional wafer SAPS TEBO Ultra – C Tahoe cleaning tools • Di
Slide 4: History of Innovation & Customer Adoption
History of Innovation & Customer Adoption Launched Tahoe & ECP SFP, Vertical YMTC, SMIC, SK Hynix Major TEBO Demo Unit 2nd Factory First Tools Furnace and Founded in and HLMC Evaluation SAPS Orders to HLMC; Expands New DRAM Semi-critical Silicon Valley Placed SAPS Begins From SK Hynix Revenue in 4Q1
Slide 5: ACM is Growing at a Rapid Pace
ACM is Growing at a Rapid Pace ($ in millions) Revenue Gross Margin(1) Net Income Attributable to ACM Research (1) $107.5 Adjusted EBITDA Margin: 22% $74.6 Adjusted EBITDA Margin: 16% 2018 2019 Operating Margin 2018 – 2019 Growth ACM Wafer Cleaning Market Share (4) (2) (3) (1) Based on GAAP financia
Slide 6: What is Wafer Wet Cleaning?
What is Wafer Wet Cleaning? Wafer cleaning is a critical process in wafer fabrication that is repeated more than any other process • Random defects arise during virtually all process steps in the wafer manufacturing Key Benefits process, resulting in yield loss and impaired chip performance Improv
Slide 7: Semiconductor Roadmap Requires More Advanced Cleaning Capabilities
Semiconductor Roadmap Requires More Advanced Cleaning Capabilities ACM products drive yield benefits across logic, NAND and DRAM IC Roadmap: Transistor Shrink, FinFETs & Larger Wafers (1) Key Process Equipment Groups • Implantation • Deposition • Lithography Most Critical for • Etch 22nm and Smaller
Slide 8: Wafer Cleaning is More Important Now Than Ever
Wafer Cleaning is More Important Now Than Ever Total Cleanings Steps Wafer Die Yield Cleaning Steps vs. Other Processes 230 Normalized Yield 200 Step Number 170 140 110 80 100 80 60 40 20 0 100 80 60 40 20 0 Technology Node, nm Technology Node, nm • Eliminating random defects through precise wafer c
Slide 9: SAPS Clean Technology: Uniformly Removes Fine Particles/Defects
SAPS Clean Technology: Uniformly Removes Fine Particles/Defects Megasonic Removes Conventional Single Jet-SprayClean Wafer Jet-Spray Clean Small Particles Conventional Megasonic Conventional MegasonicClean Clean ACM ACM SAPS Clean Megasonic: SAPS • Legacy solution used in • Megasonic wave creates •
Slide 10: TEBO: Proprietary Technology Reduces or Eliminates Feature Damage
TEBO: Proprietary Technology Reduces or Eliminates Feature Damage SEM images of damages at 50-nm DRAM storage As device features become smaller and more capacitors following a dSC-1 clean with fragile with high aspect ratios (feature structure megasonics in a batch immersion tool using high depth to
Slide 11: TEBO Technology: Works by Controlling Transit Cavitation Formation
TEBO Technology: Works by Controlling Transit Cavitation Formation Conventional Megasonic Cleaning TEBO Megasonic Cleaning Transit Cavitation Implosion Stable Cavitation, Effective Cleaning, Low/No Damages Wafer Structure Damage Megasonic Energy Cycles Cavitation Temperature Cavitation Size in Oscil
Slide 12: Core Technology: Ultra C Tahoe
Core Technology : Ultra C Tahoe（Bench +Single, Covered 20% Clean Process ） Technology Advantage: Combine the process and cost of the single & bench cleaning process Cost saving of SPM, reduced the cost of sulfuric acid >80%, in 100K/month mass production line, the annual saving of sulfuric acid
Slide 13: Single-Wafer Wet Cleaning Products
Single-Wafer Wet Cleaning Products Innovative, patent-protected tools address critical challenges in leading edge IC manufacturing SAPS TEBO Ultra – C Tahoe Megasonic Cleaning for Bubble Oscillation Cleaning for Hybrid Wafer Cleaning With Significant Flat and Patterned Wafer Patterned Wafers at Adva
Slide 14: New Electrochemical Plating Products Significantly Increase TAM
New Electrochemical Plating Products Significantly Increase TAM Delivers significant benefits to customers, including greater performance, increased flexibility and improved cycle times Ultra ECP ap Ultra ECP map Advanced Wafer Level Packaging Multi Anode Partial Plating (Back-end Assembly Tool) (Fr
Slide 15: New SFP Product Significantly Reduces Cost of Consumables (CoC) for Customers
New SFP Product Significantly Reduces Cost of Consumables (CoC) for Customers Delivers significant benefits to customers, including greater performance, increased flexibility and lower CoC Ultra SFP ap Advanced Wafer Level Packaging (Back-end Assembly Tool) Back-end assembly tool used for polishin
Slide 16: Ultra Furnace Platform Targets LPCVD, Oxidation, Annealing and ALD
Ultra Furnace Platform Targets LPCVD, Oxidation, Annealing and ALD The innovative system design combines newly developed hardware that improves durability, with proven software technology and a proprietary control system and algorithm. Ultra Furnace The Ultra Furnace system is intended for batch p
Slide 17: Ultra C Wet Cleaning Tools for Advanced IC, Power Device, Advanced WLP Markets
Ultra C Wet Cleaning Tools for Advanced IC, Power Device, Advanced WLP Markets Latest Suite of Ultra C Wet Cleaning Tools for Front and Backside Processes Ultra C b Ultra C wb Ultra C s Backside Clean Automated Wet Bench Scrubber Backside metal removal or RCA clean Batch cleaning of up to 50 waf
Slide 18: Innovation and Product Introductions Expanding Addressable Market
Innovation and Product Introductions Expanding Addressable Market ACM projects that SAPS, TEBO and Tahoe address more than 50% of the single-wafer wet cleaning market, and SFP, ECP, Furnace and Semi-Critical tools more than doubles our market opportunity Future Products World-class R&D team SFP, ECP
Slide 19: Tier One Customer Base
Tier One Customer Base Front-End Customers Back-End Customers • Major new entrant into NAND flash and • Leading advanced foundry in China • Global market leader in memory (DRAM & • Largest bumping house in China and DRAM industry • Manages first fully automated 300mm NAND) semiconductor products lea
Slide 20: Well-Positioned to Participate in Asia Fab Investments
Well-Positioned to Participate in Asia Fab Investments Semiconductor Industry Development ($ in billions) New Facilities and Industry Center Shifts China is the Fastest Production Lines Starting Through the Decades(1) Growing Geography(2) Operation (2017-2020)(1) Rank Country or 2020 16-'20 Region S
Slide 21: Shanghai Manufacturing Facilities – Existing and Planned
Shanghai Manufacturing Facilities – Existing and Planned Factory #1 (Shanghai HQ) Facility #2 Factory #3 • Finalized agreement for land rights for R&D and production facility in Lingang region of Shanghai in May 2020 • Under the agreement, ACM Shanghai plans to build a development and production fac
Slide 22: Q1 2020 Highlights
Q1 2020 Highlights • Solid Q1 Results: Revenue and shipments were impacted by COVID-19 related shutdowns $24.3 million revenue, up 19% from Q1 2019; Total shipments of $12 million 42.0% GAAP gross margin and 5.0% GAAP operating margin 42.2% non-GAAP gross margin and 7.8% non-GAAP operating m
Slide 23: Q1'20 Financial Results
Q1’20 Financial Results $ Millions, non-GAAP gross profit and operating profit Revenue Gross Profit 42.2% 42.0% 43.1% 43.2% Operating Profit Balance Sheet Data* 14.6% 11.0% 7.8% 5.0% * Finished goods inventory represents ‘demo-to-sales’ product which have been delivered to customers for evaluation.
Slide 24: Growth Strategy
Growth Strategy 111 Selective Acquisitions 111 Add New Customers • Use M&A to broaden product Continue to111 Build Scale in portfolio, add complementary Asia • Megasonic approaches SAPS, technologies and increase New Product Introductions TEBO, Tahoe and ECP a driving access to the global market Inc
Slide 25: Investment Highlights
Investment Highlights Gaining share in the ~$3B wafer cleaning market (1) Innovative, patent-protected tools address critical challenges in leading-edge IC manufacturing Tier 1 global customer base in DRAM, NAND and foundry / logic New product introductions have more than doubled SAM China-based pro
Slide 26: GAAP to Non-GAAP Reconciliation (1)
GAAP to Non-GAAP Reconciliation (1) ($ in millions) 2017 2018 2019 3 months Ended 3/31/2020 GAAP Income from Operations $0.7 $6.5 $17.8 $1.2 Plus: Stock-based Compensation $1.6 $3.4 $3.6 $0.7 Adjusted Income from Operations $2.3 $9.8 $21.4 $1.9 GAAP Net Income (Loss) ($0.3) $6.6 $19.5 $2.0 Plus: Int
Slide 27: GAAP to Non-GAAP Reconciliation (2)
GAAP to Non-GAAP Reconciliation (2) ($ in millions) Three Months Ended March 31, GAAP Non-GAAP 2020 2019 2020 2019 (dollars in thousands) Revenue $ 24,348 $ 20,479 $ 24,348 $ 20,479 Gross margin (1) 42.0% 43.1% 42.2% 43.2% Income from operations (1) $ 1,218 $ 2,251 $ 1,907 $ 2,995 Net income attribu
Slide 28: GAAP to Non-GAAP Reconciliation (3)
GAAP to Non-GAAP Reconciliation (3) Three Months Ended March 31, 2020 2019 Actual Adjusted Actual Adjusted SBC SBC (GAAP) (Non-GAAP) (GAAP) (Non-GAAP) (In thousands) Revenue $ 24,348 $ - $ 24,348 $ 20,479 $ - $ 20,479 Cost of revenue (14,120) (45) (14,075) (11,653) (30) (11,623) Gross profit 10,228