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

Manufacturing for the test businesses is primarily conducted through subcontractors/contract manufacturers with significant operations in Malaysia; disruption there could impair Teradyne's ability to fill orders.

“Our manufacturing activities for our test businesses are primarily conducted through subcontractors and outsourced contract manufacturers with significant operations in Malaysia. The manufacturing activities for our Robotics businesses are done primarily in our production facilities in Denmark and the U.S.”

Revenue is concentrated in Asia — Taiwan 36%, China 14%, Korea 14% in 2025 — and 89% of revenue is from outside the U.S., exposing Teradyne to regional and geopolitical risk.

“Revenues by country as a percentage of total revenues were as follows (1): 2025 2024 Taiwan 36 % 21 % China 14 13 Korea 14 25 United States 11 13 Europe 7 9 Malaysia 3 2 Singapore 3 3 Philippines 3 2 Thailand 2 2 Japan 2 6 Rest of the World 4 4 100 % 100 %”

In 2025 one (unnamed) direct customer was 19% of consolidated revenue and two specifying customers were 12% and 10%; two customers were also 22% and 20% of accounts receivable. Loss of a top-five customer could materially hurt results.

“The two specifying customers were both customers of our Semiconductor Test and Product Test segments and drove 12% and 10% of consolidated revenues. The additional direct customer, a customer of our Semiconductor Test segment, accounted for 19% of consolidated revenues including certain revenues specified by other customers.”

U.S. Commerce export controls restrict transactions with certain China customers and have limited Teradyne's ability to compete in certain regions; China's retaliatory tariffs may further disrupt sales and supply chain.

“For example, we must comply with current U.S. Department of Commerce export control regulations restricting transactions with certain customers in China. We must also comply with export restrictions and laws imposed by other countries affecting trade and investments.”

While most components are multi-sourced, certain items come from sole sources; delay or cessation by a sole-source supplier could temporarily impact manufacturing and delivery.

“While the majority of our components are available from multiple suppliers, certain items are obtained from sole sources. We may experience a temporary adverse impact if any of our sole source suppliers delay or cease to deliver products.”