LONG-TERM BORROWINGS

12 Months Ended

Dec. 31, 2021

NOTE 12 – LONG-TERM BORROWINGS

At December 31, 2021 and 2020, long-term borrowings consisted of the following:

	December 31,
	2021			2020
Loan from China Merchants Bank	$	18,390		$	19,570
Loans from Bank of China		6,977			-
Less: Current portion		(2,410	)		(1,591	)
	$	22,957		$	17,979

The loan from China Merchants Bank is for the purpose of purchasing property in Lingang, Shanghai. The loan is repayable in 120 installments with the last installment due in November 2030, with an annual interest rate of 4.65%. The loan is pledged by the property of Shengwei Research (Shanghai) Inc. and guaranteed by ACM Research (Shanghai) Inc. As of December 31, 2021, the right certificate of the pledged property has not been obtained and the procedures of the formal pledge registration in the bank had not been completed.

Two loans from Bank of China are for the purpose of funding ACM Shanghai project expenditures. The loans bear interest at an annual rate of 2.6% and are repayable in 6 installments, with the last installments due in June 2024 and September 2024.

Scheduled principal payments for the outstanding long-term loan as of December 31, 2021 are as follows:

Year ending December 31,
2022	$	2,410
2023		2,491
2024		7,436
2025		1,959
2026 and onwards		11,071
	$	25,367

For the year ended December 31, 2021, $1,040 of interest related to long-term borrowings was incurred, of which $65 was charged to interest expense and $975 was capitalized as other long-term assets. For the year ended December 31, 2020, $72 of interest related to long-term borrowings was incurred, and capitalized, as other long-term assets.