Published by Global Banking & Finance Review®
Posted on February 28, 2025
2 min readLast updated: January 25, 2026
Morgan Advanced Materials expects a revenue decline due to US tariffs impacting semiconductor demand, with shares dropping 8% to 236p.
(Reuters) - Semiconductor parts supplier Morgan Advanced Materials on Friday forecast a drop in organic revenue this year due to uncertain demand, sparked, in part, by U.S. President Donald Trump's tariff threats.
The company -- which has manufacturing plants in the U.S. as well as in Trump's key tariff targets of Mexico, Canada and China -- said it was prepared to consider alternative locations to mitigate any effects of U.S. tariffs.
WHY IT'S IMPORTANT
Trump's vows to increase tariffs on a swathe of U.S. imports, including semiconductors, from a range of countries have sent global companies scrambling to plan for any impact on them or their clients.
CONTEXT
Morgan Advanced Materials has seen growth slow for its products used in silicon carbide (SiC) power semiconductor production, mainly due to weakening demand for electric vehicles.
In the U.S., Morgan Advanced's biggest market, the EV industry is already grappling with consumers preferring cheaper gas-powered cars and could soon face the loss of tax credit for buyers under the Trump administration's potential policy changes.
BY THE NUMBERS
Morgan Advanced reported a 1.3% drop in revenue to 1.1 billion pounds ($1.38 billion) in 2024 and said it expects organic revenue to decline in the mid-single-digit percentage range this year.
Despite the drop in revenue, the company's adjusted operating profit increased by 6.7% last year due to the group's efforts to cull the number of reporting segments and consolidate manufacturing plants.
MARKET REACTION
The company's shares fell 8% in early trade to hit 236p, the lowest since November 2023. ($1 = 0.7950 pounds)
(Reporting by Raechel Thankam Job; Editing by Savio D'Souza)
Morgan Advanced Materials expects organic revenue to decline in the mid-single-digit percentage range this year.
The company is considering alternative manufacturing locations to mitigate the impact of U.S. tariffs on imports, particularly from countries like Mexico, Canada, and China.
The decline in demand is primarily due to weakening interest in electric vehicles, as consumers are opting for cheaper gas-powered cars.
The company's shares fell 8% in early trade, reaching 236p, which is the lowest level since November 2023.
Morgan Advanced reported a 1.3% drop in revenue to 1.1 billion pounds ($1.38 billion) for the year 2024.
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