AMAT · CIK 6951
What Applied Materials, Inc. told the SEC could break it.
Almost everything Applied Materials flagged traces back to its concentration in Asia: roughly 89% of fiscal 2025 net revenue came from customers outside the U.S., with the majority of products and services delivered to China, Taiwan and Korea, and two customers alone made up about 19% and 15% of net revenue. That geography sits directly in the path of trade policy — U.S. export controls restricting sales of certain technologies to Chinese customers can hand an edge to international competitors, while new tariffs raise costs and compress margins. It also relies on non-U.S. suppliers and notes that some key parts can be obtained only from a single qualified supplier or a limited group, creating manufacturing- and service-interruption risk.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- two unnamed customers = 19% and 15% of net revenue (FY2025)medium
In fiscal 2025 two customers accounted for ~19% and ~15% of Applied Materials' net revenue respectively (both individually above 10%); concentration recurs (19%/15% also in FY2023; 12%/11% in FY2024).
“During fiscal 2025, two customers accounted for approximately 19 % and 15 %, respectively, of our net revenue. During fiscal 2024, two customers accounted for approximately 12 % and 11 %, respectively, of our net revenue.”
SEC filing →As of 2025
Geographic concentration
- ~89% of net revenue outside U.S.; delivery concentrated in China, Taiwan, Koreamedium
Approximately 89% of Applied Materials' fiscal 2025 net revenue was to customers outside the U.S., with a majority of products/services delivered to China, Taiwan and Korea — and a significant portion of equipment/supplies purchased from non-U.S. suppliers.
“A majority of our products and services are delivered to customers in jurisdictions outside of the United States, including China, Taiwan and Korea. We also purchase a significant portion of equipment and supplies from suppliers outside of the United States.”
Supplier concentration
- single/limited-source qualified suppliers for some key partsmedium
Although Applied tries to assure parts are available from multiple qualified suppliers, this is not always possible — some key parts may be obtained only from a single qualified supplier or a limited group, creating manufacturing/service-interruption risk.
“Accordingly, some key parts may be obtained from only a qualified single supplier or a limited group of qualified suppliers.”
SEC filing →As of 2025
Regulatory & policy
- U.S. export controls restricting sales of certain technologies to China; tariffslow
U.S. government export controls restricting sale of certain technologies to Chinese customers (plus China's local-manufacturer incentives) can disadvantage Applied vs. international competitors, while new tariffs (China and others) raise its costs and compress margins.
“Export controls enacted by the United States government that restrict the sale of certain technologies to customers in China may also provide an advantage to our international competitors.”
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
“This dual-chamber tool is leased from Applied Materials and is located in a cleanroom in the same facility where we lease office space in Tempe, Arizona.”
Cited →
Its suppliers
“Sales to our largest customer, Applied Materials, Inc. and subsidiaries, represented 14% of our total sales in both 2025 and 2024 and 12% of our total sales in 2023.”
Cited →“Representative customers include leading global manufacturers of semiconductor manufacturing equipment, such as Applied Materials and ASML, as well as manufacturers of equipment used in the life sciences and industrial technology industries and government defense c”
Cited →
In the MyPRIA app, this is checked against the companies you actually own.
← World Watch