MKSI · CIK 1049502
What MKS Inc. told the SEC could break it.
Trade policy is MKS's sharpest exposure: its semiconductor capital-equipment sales have been hit by significant restrictions in key markets, especially China, and as of January 2026 it faced a 20% IEEPA-based duty on Chinese imports stacking on Section 301 and 232 duties plus a broad reciprocal tariff schedule — costs that have already compressed its gross margin. That sits on top of heavy geographic concentration: about 81% of 2025 net revenue was international, much of it from China, South Korea, Singapore, Taiwan and Japan, and roughly 70% of its long-lived assets are outside the U.S. Its supply chain is the third thread — it relies on limited, sole-source and international suppliers, so component shortages, price increases or disruptions could impair its ability to produce its critical subsystems.
3 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
- China semicap trade restrictions and IEEPA/Section 301/232 tariffshigh
MKS's semiconductor capital-equipment sales have been hit by significant trade restrictions in key markets (especially China), and as of January 2026 it faced a combined 20% IEEPA-based duty on Chinese imports stacking on Section 301/232 duties plus a permanent Reciprocal Tariff Schedule on nearly all imports — raising duty/tariff costs that already cut gross margin (the Feb 2026 SCOTUS IEEPA ruling adds further uncertainty).
“As of January 2026, we remain subject to a combined 20% International Emergency Economic Powers Act (“IEEPA”)-based baseline duty on Chinese imports (10% reciprocal and 10% fentanyl-related), which stacks upon existing Section 301 duties, standard most-favored-nation rates as well as applicable Section 232 duties.”
Geographic concentration
- 81% of revenue international (China/South Korea/Singapore/Taiwan/Japan); 70% of long-lived assets ex-USmedium
Approximately 81% of MKS's 2025 net revenues were international, with significant exposure to China, South Korea, Singapore, Taiwan and Japan, and ~70% of its long-lived assets are located outside the US (manufacturing across 18 countries) — concentrating revenue and operational risk in East Asia.
“International net revenues accounted for approximately 81% and 78% of our total net revenues in 2025 and 2024, respectively... A significant portion of our international net revenues was from customers in China, South Korea, Singapore, Taiwan and Japan.”
Supplier concentration
- limited, sole-source and international suppliers; component shortages/price increasesmedium
MKS faces manufacturing and sourcing risks including supply-chain disruptions, component shortages and price increases, and the use of limited, sole-source and international suppliers — disruptions to which could impair its ability to produce its critical semiconductor subsystems.
“manufacturing and sourcing risks, including supply chain disruptions, component shortages and price increases, the use of limited, sole source and international suppliers, the relocation of manufacturing operations, and product defects”
SEC filing →As of 2026
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