(Yicai) Jan. 26 -- Shares of ACM Research plunged after the Chinese developer of wafer cleaning and wet processing equipment for the semiconductor industry announced a CNY4.5 billion (USD627 million) private placement to fund two research and development projects.

ACM [SHA: 688082] closed 11.7 percent down at CNY82.40 (USD11.60) in Shanghai today. The Shenwan Semiconductor Index fell 3.4 percent, and the Shanghai Stock Exchange Science and Technology Innovation Board 50 Index, of which ACM is one of the constituent stocks, dropped 2.6 percent.

ACM is planning a CNY4.5 billion private placement, the Shanghai-based company announced late yesterday. Nearly CNY2.3 billion of the proceeds will be used to upgrade the company’s existing high-end semiconductor production equipment products, CNY940 million (USD131 million) will be used to build a semiconductor equipment R&D and process testing platform, and the remaining CNY1.3 billion will supplement the firm’s working capital.

Once completed, the R&D and process testing platform will provide testing and other supporting services for ACM’s new product development from the first research stage to the equipment finalization, effectively shortening the R&D and verification cycle of new products and helping the company launch various equipment that can meet the needs of different customers faster, ACM noted.

ACM is an equipment manufacturer serving the integrated circuit, compound semiconductor, wafer-level packaging, and wafer manufacturing industries with a broad product portfolio. The company has formed a relatively stable equipment development and supply cooperation relationship with several leading enterprises in the semiconductor industry in China and overseas, according to its 2022 annual report.

Editor: Futura Costaglione