What Daktronics, Inc. told the SEC could break it.

Daktronics' displays depend on semiconductor-type components (LEDs, printed circuit boards, integrated circuits) sourced or packaged primarily through suppliers in Taiwan or China — a concentrated upstream dependence on two geopolitically sensitive sources.

“Our supply chain includes semiconductor-type components including LEDs, printed circuit boards, and other integrated circuits, which are sourced or packaged directly or indirectly primarily through suppliers in Taiwan or China.”

Daktronics was simultaneously recruiting a new Chief Executive Officer and Chief Financial Officer, creating leadership-transition risk at the top of the company.

“We are currently recruiting for a new Chief Executive Officer and Chief Financial Officer, and the outcome of these searches will play an important role in shaping our future leadership”

With US manufacturing relying on inputs from 40+ countries and China the top source of LEDs/PCBs/ICs, Daktronics faces volatile tariffs — rates on certain Chinese-origin items as high as 170%, steel/aluminum raised 25%→50%, plus reciprocal tariffs and a later US-China reduction (145%→30%).

“China has been the greatest source for semiconductor type components, including LEDs, printed circuit boards, and other integrated circuits. United States tariff rates on these imports can range from 10 percent to much higher levels, with proposed or applied rates as high as 170 percent for certain items of Chinese origin.”