What Veeco Instruments Inc. told the SEC could break it.

Veeco flags exposure to the 2025 tariff escalation: the U.S. imposed a 25% tariff on steel and aluminum (and derivative products) in February 2025 and a 10% baseline tariff on imports from all countries plus individualized reciprocal tariffs in April 2025, prompting retaliatory tariffs from China, the EU and others. With significant supply-chain elements sourced outside the U.S. and ~85% of sales abroad, these duties raise component/input costs and expose its exports to retaliation — a distinct trade-policy channel from the BIS export controls. A specific, dated tariff/trade-policy exposure.

“In February of 2025, the U.S. Government issued proclamations imposing a 25% tariff on imports of steel and aluminum products”

As a U.S.-origin semiconductor-equipment maker with ~85% of sales to non-U.S. customers (a meaningful share historically in China), Veeco is directly exposed to U.S. Commerce/BIS export-control rules aimed at restricting China's ability to obtain advanced computing chips and manufacture advanced semiconductors. Its products — manufactured in the U.S. or incorporating controlled U.S.-origin parts/technology — are subject to the Export Administration Regulations and may require export licenses that can be denied, restricting China sales and service. Tightening or expansion of these controls has adversely affected, and could continue to adversely affect, results. A specific, material semicap export-control exposure on the China market.

Veeco sells capital equipment (laser annealing, MOCVD, ion beam, ALD) into a small set of large chipmakers and compound-semi/data-storage manufacturers, and depends on purchases from its ten largest customers, which accounted for 68% and 63% of net accounts receivable at year-end 2025 and 2024. Multiple customers individually exceed 10% of net sales/AR. This concentration means an order pause, fab-capex cut, or qualification loss at one or two key accounts (e.g., a Tier 1 memory or advanced-logic customer) can swing revenue sharply — as the 60% data-storage decline in 2025 illustrates. The customers are not named/are anonymized in the filing, so this is a concentration risk rather than a named edge. A high customer-concentration exposure.

“The Company depends on purchases from its ten largest customers, which accounted for 68 % and 63 % of net accounts receivable at December 31, 2025 and 2024, respectively.”

Veeco relies on a limited number of suppliers, some of whom are its sole source for particular components: certain parts, components and sub-assemblies in its precision systems are obtained from a single source or a limited group of suppliers, some located outside the U.S., and certain key parts carry long lead-times. An inability to develop alternative sources could cause a prolonged interruption in its ability to supply products, a failure to meet customer demand, and significant price increases. The suppliers are not named, so this is a sole-source dependence risk rather than a named edge. A real single-source component-supply vulnerability in a complex semicap supply chain.

“Certain of the parts, components, and sub-assemblies included in our products are obtained from a single source or a limited group of suppliers.”