ACM Research Expands Korea Plant to Bypass US Export Rules

ACM Research expanded its wafer-cleaning equipment manufacturing lines in Pyeongtaek, South Korea, details confirmed Oct. 27, 2026 show, to route tools to non-China markets around tightening United States export controls.

The upgraded facility doubles to triples assembly capacity for the company's single-wafer wet cleaning tools. Construction finished in June 2026, and full-scale commercial operations will begin in early 2027, according to company officials.

Crews upgraded the facility cleanroom to Class 1000 standards. That specification limits airborne contamination to 1,000 microscopic particles per cubic foot of air, protecting silicon wafers as chemical nozzles and spray arms are installed.

ACM Research relies almost entirely on customers in mainland China for tool shipments. Sales to Chinese wafer fabrication plants accounted for 99.6% of the company's total revenue last year, according to regulatory filings.

The United States Department of Commerce Bureau of Industry and Security placed ACM Research (Shanghai) on the Entity List on Dec. 2, 2024. The export designation also blacklisted ACM Research Korea, a subsidiary owned through Shanghai.

The export listing bars suppliers worldwide from providing American software, equipment components and technical data to the Chinese unit without federal export licenses. The Commerce Department cited support for advanced integrated circuits tied to Chinese military programs.

Hanguk ACM CO., LTD., a separate South Korean corporate entity, owns and operates the Pyeongtaek plant. ACM Research founded Hanguk ACM in March 2022 as a wholly owned direct subsidiary of the California parent company.

Because Hanguk ACM reports directly to Fremont, California rather than Shanghai, the entity remains off the export blacklist. The parent firm holds a 73.2% stake in the Shanghai operating entity, according to securities filings.

The Pyeongtaek plant will build tools exclusively for non-China buyers. The target markets include chipmakers in the United States, Singapore, Malaysia and India, an ACM Research official said.

ACM Research maintains operational barriers between its Chinese engineering teams and overseas facilities. Tool technology originates in China, but communication between Shanghai and foreign production bases remains strictly one-way, the official said.

ACM Research Korea remains separate from the Pyeongtaek plant. That blacklisted unit, acquired by Shanghai through Hong Kong in 2017, focuses on Korean customer service and legacy domestic research.

The split corporate structure faces rising political pressure in Washington. United States lawmakers questioned Intel in March 2026 over whether the chipmaker tested equipment built by ACM affiliates while receiving federal semiconductor manufacturing subsidies.

Senators Elizabeth Warren and Tom Cotton pressed Intel for documentation on its technical evaluations of ACM tools. The lawmakers asked whether commercial evaluations risked transferring process secrets to Chinese semiconductor programs.

ACM Research has also taken steps to anchor physical capacity inside the United States. The company purchased a 3,670-square-meter commercial site in Hillsboro, Oregon for $7.75 million in October 2024.

The Oregon site houses engineering laboratories and product demonstration lines. ACM Research plans to install full tool assembly there as United States foundries bring new fabrication lines online, the company said.

The Pyeongtaek expansion serves as an immediate production bridge while Oregon undergoes development. South Korea offers established component suppliers, experienced precision assembly labor and direct logistics channels into Southeast Asian packaging facilities.

Single-wafer wet cleaning tools perform critical decontamination during wafer processing. The machines spray high-purity chemical mixtures onto rotating wafers to remove microscopic particles without damaging microscopic transistor gates.

Global semiconductor equipment makers are using South Korean factories to shield export contracts. By shifting production out of Shanghai, vendors maintain access to Western and Southeast Asian wafer fabs without triggering United States secondary sanctions.

The Jinwi plant sits in Pyeongtaek's northern industrial zone, minutes from major Korean chip production centers. The site allows Hanguk ACM to procure precision components from South Korean suppliers while insulating assemblies from Chinese customs oversight.

ACM Research has not disclosed the total capital expenditure for the Jinwi plant expansion. The company has not filed a Form 8-K disclosure or public press release detailing the facility upgrade.

Initial domestic reports misidentified the factory site as Anseong. Corporate records confirm Hanguk ACM operates manufacturing exclusively at the Jinwi facility in Pyeongtaek, alongside regional technical offices in Icheon and Yongin.

Full-scale commercial tool manufacturing at the expanded Pyeongtaek cleanroom begins in early 2027. Export deliveries to packaging and wafer plants across Southeast Asia and the United States will follow later that quarter.