Supplier of chips in the UK Morgan Advanced Flags affected for the trouble of tariffs in the store hit the demand

(Reuters) – The supplier of semiconductor Morgan Advanced Materials on Friday predicted a decline in organic income due to an uncertain request, partly caused a tariff threat to US President Donald Trump.

Company – which has manufacturing facilities in the US, as well as in Trump’s key tariff goals Mexico, Canada and China – she said she was ready to consider alternative locations to mitigate any effects of US tariffs.

Why is that important

Trump vows to increase the tariffs on a multitude of US imports, including semiconductors, from different countries sent global companies planning to plan any influence on them or their clients.

CONTEXT

Morgan Advanced Materials recorded growth rise for its products used in silicone carbide (SIC) Power Power production, mainly due to the weakening of demand for electric vehicles.

In the US, Morgan Advanced’s largest market, the EV industry is already facing consumers, preferring cheaper gas cars and could soon face the loss of tax loans for customers within the potential changes of Trump’s administration policy.

Numbers

Morgan Advanced reported a drop in revenue of 1.3% to £ 1.1 billion (1.38 billion USD) 2024, and said he expected organic revenue this year to decline the percentage of the middle single-digit.

Despite the fall in revenue, the adapted company operating profit increased by 6.7% last year due to the effort of the group to reduce the number of reporting segments and consolidates production facilities.

Reaction in the market

The company’s shares have fallen by 8% at an early store to reach 236p, which is the lowest of November 2023. (1 = 0.7950 pounds)

(Raechel Hermam Job; Mounting Savio D’Souza)