ACM Research, Inc. (NASDAQ:ACMR) Q3 2023 Earnings Call Transcript

And plus, our new architecture really is aiming for the high throughput of this next generation tool, right. And so if people talk about even 400, 450, WPHE high throughput. So we attach our Track system, we are aiming for that market. And we’re planning to be the second player in this array called the competitive market. So as I see that, so I think probably 15%, 16%, that’s a range and we’ll be keeping. And with that percentage wise, probably not much changing. But then we have a revenue for that, you can see that we still maintain a lot of that there on the money into their existing product and also new product. And especially even for existing product, like a copper plating and also their cleaning, right? We also do put effort in there.

In recent years, we see there, this cleaning product become more and more important for their new advanced technology. Plus, I should say the copper plating market will rapidly, this chiplet, advanced 3D packaging, and this copper plating will become very important. So we’re also putting R&D into both the existing production line.

Mark McKechnie: Yes, one last thing. Charlie, we’ve said this before, but if you look at it, kind of tax behind what David said, R&D expected around 15% of sales. But we should see some operating leverage on the D&A and the sales and marketing side. We got a little bit this year, and in general, that’s the way our operating model is built.

David Wang: So the R&D intensity will keep at 15% at least for the coming couple of years.

Charlie Chan: Okay, okay. Fair enough. Thanks for the comments. Thank you.

David Wang: Thank you.

Operator: Thank you. [Operator Instructions]. There seems to be no further questions. Apologies, we have a question that’s come through, one moment please. And you have a follow-up question from the line of Charles Shi from Needham & Company. Please go ahead, your line is open.

Charles Shi: Hi, thanks for taking my follow-up question. So Dave and Mark, I really just want to go back to your comment, the overall China market. I know you said you are not the market leader here, but can you kind of explain why you are seeing China market down year-on-year as a whole? And what about quarter-on-quarter? What do you see there? I’m just looking at the data and the commentary from your U.S. peers. It seems like they are probably expecting Q4 overall China market to be holding relatively strong. I don’t exactly know where your QonQ or year-on-year, but what’s kind of curious why you think that overall China market was down year-on-year? Thanks.

David Wang: Well, let me add on that maybe Charles, actually we don’t have whole data, right? We’re not collecting whole marketing data. However, you’re looking at all the research reports to the semi or other U.S. bankers published. People talk about probably a few percent, I should say less than 10% down. People say whole year, one quarter base, right? And we see probably this year we see almost like a flat in over. I don’t know yet, this moment I will say, flat is that we will stay here, but we will remember what I said probably end of this year, somebody published a real result. But I don’t say, even this year flat, we see our customer expansion and we think next year is still another good year. And everybody expecting probably three, five, and six, the global market back. But I think in China this time, even downturn globally, the margin in general is still with semi and I will say, next year is another good year. These are also new products.