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

Roughly 7% of FormFactor's FY2025 revenue (14% in FY2024) came from customers in China, a region subject to expanded U.S. export-license requirements; escalating U.S.–China trade tensions, technology-transfer restrictions and export controls could further restrict FormFactor's ability to sell into and operate in the Chinese market.

“approximately 7% of our fiscal 2025 revenue and 14% of our fiscal 2024 revenue was derived from sales to customers in China, which was one of the regions subject to the expanded export license requirements imposed by the United States government.”

Tariffs are a realized, quantified cost: higher manufacturing costs from increased tariff costs cut into the Probe Cards segment's gross margin in fiscal 2025 (a stated ~1.4% gross-margin impact), eroding profitability even amid record revenue.

“Probe Cards — Gross profit and gross margin in the Probe Cards segment decreased in fiscal 2025 compared to fiscal 2024, despite the record revenue levels primarily due to higher manufacturing costs, which included increased costs for tariffs, partially offset by a favorable product mix and favorable factory utilization with the increased volumes.”

FormFactor sources key probe-card components and materials — printed circuit board assemblies, plating materials and ceramic substrates — from sole or limited suppliers, and in some cases no alternative source is currently available, so loss of a supplier or raw-material scarcity could cause production delays.

“We obtain some of the components and materials used in our products, such as printed circuit board assemblies, plating materials and ceramic substrates, from a sole source or a limited group of suppliers, and in some cases alternative sources are not currently available.”