What Ultra Clean Holdings, Inc. told the SEC could break it.

For many components and raw materials in its semiconductor subsystems, Ultra Clean relies on single-source and sole-source suppliers — many specifically designated by its OEM customers — leaving it unable to quickly substitute; a supplier failure to deliver volume, price or quality would force lengthy requalification.

“For many of the components and raw materials we use in our products and services, we rely on both single-source and sole-source suppliers, many of whom have been specifically designated by our customers.”

Since December 2024 the U.S. Commerce Department greatly expanded export-license requirements on semiconductor goods/technologies sold to China and added 140+ Chinese entities to the Entity List (only temporarily/partially suspended in October 2025); Ultra Clean's China manufacturing subsidiary utilization is at risk, and U.S.–China tariffs on raw materials have raised its product costs.

“Since December 2024, the U.S. Department of Commerce has significantly expanded export license requirements on certain semiconductor goods and technologies sold to China, and has added over 140 Chinese entities to its Entity List. Although the U.S. and China agreed to temporarily suspend certain export control measures in October 2025, this limited relief does not resolve the underlying regulatory restrictions or uncertainty.”