(Yicai Global) Aug. 8 -- Shares in ACM Research Shanghai surged as much as 9.6 percent today before receding as investors cashed in after the Chinese developer of cleaning technologies and products for the semiconductor sector said it will invest CNY748 million (USD110.6 million) to build a research and development center to help it quickly extend its footprint in the market.

ACM’s share price [SHA:688082] closed down 2.8 percent at CNY123 (USD18). Earlier in the day it hit CNY138.78. The stock has gained 76 percent in value since market indexes bottomed out in late April and is now close to the record high it reached soon after going public in November last year.

ACM plans to renovate four office buildings in Shanghai’s Zhangjiang Hi-Tech Park for R&D purposes, the Shanghai-based firm said yesterday. The center, which should be ready in two years’ time, will focus on developing dry cleaning equipment for chips, including those that use supercritical carbon dioxide. The new products will meet the highest international performance specifications.

The move will help accelerate ACM’s transformation into a first-class global integrated circuit gear manufacturer, it said. It will attract both Chinese and foreign skilled talent and help make up for weaknesses in the country’s semiconductor equipment sector.

The funds will mostly come from proceeds remaining from the company’s initial public offering on the Shanghai stock exchange’s Nasdaq-style Star Market last year, it said. The firm, whose parent company ACM Research makes wet processing products for the IC field and is based in Silicon Valley, raked in CNY3.5 billion (USD517.6 million), nearly double the original target.

ACM’s net profit surged more than two-and-a-half times in the first half from the same period last year to CNY237 million (USD35 million) on strong demand for its products, according to its latest earnings report. Revenue jumped 75 percent to CNY1.1 billion. However, cash flow sank to minus CNY328 million due to increased outlay on raw materials and staff wages.

Editor: Kim Taylor