Backend optionality adds to China memory upside; OW

Research evidence excerpt

Backend optionality adds to China memory upside; OW

Idea

June 23, 2026 04:24 PM GMT

Morgan Stanley Taiwan Limited+MACM Research Inc | Asia Pacific Charlie Chan

Equity Analyst

Backend optionality adds to Charlie.Chan@morganstanley.comMorgan Stanley Asia Limited+ +886 2 2730-1725

Henry Zhao

Research AssociateChina memory upside; OW Henry.Zhao@morganstanley.com +852 2239-7731

What’s Changed Morgan Stanley Taiwan Limited+

ACM Research Inc (ACMR.O) From To Daniel Yen, CFA

Price Target US$90.00 US$130.00 Equity Analyst

Daniel.Yen@morganstanley.com +886 2 2730-2863

We raise our PT based on China memory upside, ECP adoption in Morgan Stanley Asia Limited+

Daisy Dai, CFA

advanced packaging, and non-mainland backend optionality. Equity Analyst

Daisy.Dai@morganstanley.com +852 2848-7310

China memory expansion remains a key driver: We remain constructive on China

memory WFE demand, with our latest industry checks pointing to more aggressive

capacity trajectories at both CXMT and YMTC, consistent with our 27 May 2026

report, Double Catalysts from Memory Expansion and Huawei's t (Tau)-Law. We

expect CXMT’s Shanghai expansion and YMTC’s Fab 3/4/5 roadmap to sustain WFE

demand in 2026-28, while rising localization ratios should further benefit qualified ACM Research Inc (ACMR.O, ACMR US)

domestic vendors. For ACMR, we believe memory expansion remains the most Greater China Technology Semiconductors | China

visible near-term driver, reflecting its established position in wet cleaning. Stock Rating Overweight

Industry View Attractive

Price target US$130.00

Backend optionality seen underappreciated, especially outside mainland China: Up/downside to price target (%) 26

Beyond front-end memory demand, we see ACMR’s advanced packaging exposure as Shr price, close (Jun 22, 2026) US$103.17