CGNX · CIK 851205
What Cognex Corporation told the SEC could break it.
Cognex's disclosures trace back to an Asia-centric supply chain and the U.S.-China trade friction that runs through it. It sources components from China, makes optical components at its own plants in China and Vietnam, and leans on third-party contract manufacturers concentrated in Indonesia and Malaysia — including a primary contract manufacturer whose 2022 Indonesia plant fire destroyed significant Cognex inventory, illustrating that single-CM risk. That same exposure to China cuts both ways on demand and cost: U.S. export controls and sanctions on Chinese semiconductor companies have hurt its revenue from China-based customers, while U.S. tariffs on Chinese-sourced components have raised product costs and contributed to a 2025 gross-margin decline.
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.
Regulatory & policy
- U.S. BIS export controls & sanctions on Chinese (semiconductor) companiesmedium
U.S. export controls (Commerce/BIS) and expanded sanctions on Chinese semiconductor companies have had a negative impact on Cognex's revenue from China-based customers and may force costly supply-chain shifts.
“In addition to trade tariffs, U.S. export controls that place restrictions on the exportation of our products or a subset of our products, including applicable regulations promulgated by the U.S. Commerce Department's Bureau of Industry and Security, have had a negative impact on our revenue from customers based in China.”
SEC filing →As of 2026 - U.S. tariffs on Chinese-sourced componentslow
U.S. tariffs on components imported from Chinese suppliers have raised product costs (not material to date) and contributed to the 2025 gross-margin decline.
“Furthermore, in recent years, trade tariffs imposed by the United States on certain components imported from Chinese suppliers resulted in higher costs for our products, which, to date, have not been material to our total cost of revenue.”
SEC filing →As of 2026
Geographic concentration
- China/Vietnam optical production + Indonesia/Malaysia contract assemblymedium
Sources components from China, uses third-party contract manufacturers primarily in Indonesia and Malaysia, and makes optical components at in-house plants in China and Vietnam — concentrating production and sourcing in Asia.
“In addition, we source components from suppliers located outside of the United States, including China, utilize third-party contract manufacturers, primarily located in Indonesia and Malaysia, to assemble certain of our products, and manufacture optical components at in-house production plants located in China and Vietnam.”
Supplier concentration
- reliance on a primary contract manufacturer (Indonesia)low
Cognex relies on a primary third-party contract manufacturer; a 2022 fire at its Indonesia plant destroyed significant Cognex inventory, illustrating the single-CM concentration risk.
“For example, in 2022, our primary contract manufacturer experienced a fire at its plant in Indonesia which destroyed a significant amount of Cognex inventories.”
SEC filing →As of 2026
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