In this pitch deck, analysts Adam Bursic, Albin Pehrson, and Cheng-Tao Lee present a compelling investment case on ACM Research. ACM is set to benefit from the U.S.–China chip war, as the leading domestic wafer cleaning player with a 19% market share amid China’s $3–14 trillion push for semiconductor self-sufficiency. A DCF valuation supports a target price of $54.34, implying 123.0% upside and a 12.8% IRR through 2032.
Investment Thesis
● China’s domestic chip supply has increased from 4 % to 17 % over the past 5 years and is projected to reach 50% by 2028; ACM, already serving nearly all major Chinese foundries, is on track to grow its cleaning tool market share to between 55%-60%
● ACM’s extensive product portfolio, covering 95% of cleaning applications and supported by strong intellectual property, positions it to secure tier-one international clients and grow non-China revenue from 1% in 2024 to 10% by 2027.
● ACMR holds an 82.1% stake in its Shanghai-listed subsidiary ACMS, valued at $5.3 billion, while ACMR itself trades at just $1.6 billion, creating a valuation disconnect that implies 203% upside and effectively offers investors a free call option.