In the third quarter, Triata Capital Ltd, a Hong Kong-based investment fund, significantly expanded its holdings in ACM Research Inc., acquiring an additional 413,000 shares. As reported in a filing with the U.S. Securities and Exchange Commission dated November 12, this transaction brought Triata’s total stake in ACM Research to approximately two million shares by the end of the quarter.
This holding amounts to a valuation of roughly $78.39 million based on quarter-end pricing, making it the fund’s fourth-largest equity position. Triata Capital reported managing total U.S. equity holdings worth $856.81 million and maintained 15 reportable positions as of September 30.
Within the composition of Triata’s equity portfolio, ACM Research represents 9.15% of the fund’s 13F assets under management (AUM), ranking behind other sizable holdings such as Pinduoduo (39.25% of AUM valued at $336.30 million), VNET Group (14.40% at $123.42 million), and GDS Holdings (10.88% at $93.19 million). Additional notable holdings include KE Holdings at 4.47%.
ACM Research’s stock price experienced an exceptional rise, trading at $39.86 per share as of the most recent market close, marking a 162% increase year over year. This performance significantly surpasses the S&P 500's approximate 15.5% growth during the same period.
Company Profile and Market Position
ACM Research specializes in the design and manufacture of advanced semiconductor fabrication equipment, particularly focusing on single-wafer wet cleaning machines and electrochemical plating systems. Their core product line, marketed under the Ultra C brand, addresses the evolving complexities of chip manufacturing through wafer cleaning and plating technologies that cater to advanced node processes and packaging requirements.
The company primarily generates revenue through direct sales channels and collaboration with third-party representatives, serving a global clientele of semiconductor manufacturers who demand higher process yields and precision in wafer-level operations. ACM Research’s solutions are tailored to accommodate both two-dimensional and three-dimensional semiconductor device architectures, supporting next-generation chip fabrication.
Financial Performance and Operational Highlights
During the third quarter, ACM Research reported notable financial results, with revenue increasing 32% compared to the same period in the previous year, reaching $269 million. This growth was driven by strong demand across their single-wafer cleaning and electrochemical plating segments as well as expanding advanced packaging markets.
Gross margins declined to 42% from above 50% year over year, a change attributed primarily to shifts in product mix and increased expenses associated with scaling operations rather than a reduction in demand or pricing pressure. The company maintained an operating income close to $29 million for the quarter.
Furthermore, ACM Research boasts a robust financial position, exiting the quarter with cash and deposit reserves exceeding $1.1 billion. This liquidity was bolstered by a substantial capital raise of approximately $623 million from the company’s Shanghai-based subsidiary on the STAR Market.
Investment Implications and Portfolio Context
Triata Capital’s considerable increase in ACM Research shares signals a strong conviction in the semiconductor equipment manufacturer’s growth trajectory and market relevance. The decision to build a significant position amid a sharp stock price appreciation suggests that the fund views the opportunity as not yet saturated.
ACM Research occupies a specialized niche within the semiconductor manufacturing supply chain where increasing process complexity creates persistent demand for precision equipment. This dynamic tends to sustain demand for such specialized tools even during periods when overall chip capital expenditures may moderate.
Within the broader context of Triata Capital’s equity holdings, the fund shows a clear preference for companies linked to China’s internet and infrastructure sectors. The substantial weighting toward ACM Research aligns with an overarching investment thesis focused on the domestic semiconductor industry’s expansion, rather than the more volatile cycles of global consumer electronics markets.
Glossary and Key Terms
- Stake: The quantity of shares or ownership percentage held by an investor in a company.
- Assets Under Management (AUM): The total market value of assets that a fund or investment firm manages.
- 13F AUM: The segment of managed assets reported in quarterly SEC filings, reflecting holdings in U.S. equities.
- Electrochemical plating systems: Equipment used to deposit metal layers on semiconductor wafers by combining electrical and chemical processes.
- Advanced node: The latest and smaller semiconductor manufacturing technology enabling higher-performance chips.
- Process yields: The percentage of semiconductor devices meeting required quality standards after manufacturing.
- Wafer cleaning: Techniques for removing contaminants from semiconductor wafers during production.
- 2D and 3D semiconductor devices: Chips produced with either traditional planar (2D) or stacked (3D) architectures for improved density and function.