Trump’s trade policies are restraining employment and hurting the US’s 36 million small businesses https://t.co/SFiGfsRzHJ ...

Prime Minister Keir Starmer tried to hold President Donald Trump close this year in a bid to shield the UK from the sharp end of his trade policies. Right now, that strategy is struggling to pay dividends. https://t.co/Q48RTDIhnl ...

President Trump's tariff war with China sent US firms scrambling to find new manufacturing hubs. India looked ideal, until the White House changed course. On today’s Big Take Asia podcast, how shifting trade policies are undermining India's push to become the world’s next factory.🎙️ Listen now: https://t.co/wELgUxXAEf ...

Economic Growth & Policy - US economy shows resilience despite changes in trade, immigration, fiscal, regulatory, and geopolitical policies [1] - Pace of economic growth has moderated recently [1] - Balance of risks has shifted, prompting a move towards a neutral policy stance [2] Employment & Inflation - Unemployment rate is low but has edged up [2] - Job gains have slowed, and downside risks to employment have risen [2] - Inflation has risen recently and remains somewhat elevated [2]

Bank of Canada Governor Tiff Macklem suggested the US dollar’s status as a “global safe asset” may be hurt by President Donald Trump’s trade policies https://t.co/FryFaOgNCx ...

Trade Policy Concerns - Republican lawmakers challenged Trump's tariff strategy [1] - Lawmakers sought more say on setting trade rates [1] Political Implications - Anxiety over Trump's trade policies surfaced among Republicans [1]

Trade Policy Impact - Trump's trade policies have disrupted business decisions [1] - Companies are scrambling to adapt to the up-and-down trade policies [1] Import Volatility - Imports experienced a crazy swing due to trade policy uncertainty [1]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $792 million, down 3% year on year but up 2% sequentially [11] - Gross margin on a GAAP basis was 44.4%, and on a non-GAAP basis, it was 46.6%, generally in line with guidance [12] - Non-GAAP EPS was $0.66 per share, at the high end of guidance [12] Business Line Data and Key Metrics Changes - Materials Solutions sales were $355 million, up 4% year on year, driven by CMP slurries and pads, selective etch, and deposition materials [13] - Advanced Purity Solutions sales were $440 million, down 7% year on year but up 1% sequentially, primarily due to a decline in facilities-based CapEx investments [14] Market Data and Key Metrics Changes - Asia customers represent approximately 70% of total revenue, with expectations to serve about 70% of this demand from non-U.S. manufacturing sites by year-end [7][8] - The China business saw a sequential increase of 8% in Q2, reflecting a recovery after tariffs were put on hold [32] Company Strategy and Development Direction - The company is focused on expanding its global manufacturing footprint and optimizing supply chains to mitigate trade policy volatility [7][8] - Investments in new manufacturing sites in Taiwan and Colorado are expected to ramp up volumes significantly in Q4 [6] Management's Comments on Operating Environment and Future Outlook - The semiconductor market remains dynamic, with mixed conditions; AI-related demand is strong, but overall fab utilization levels are subdued [10][28] - The company expects a stronger second half performance, despite ongoing uncertainties in trade policies and capital spending [11][57] Other Important Information - Free cash flow was $79 million in the first half of the year, with expectations for a low double-digit free cash flow margin in 2025 [15] - The company has paid down $50 million of its term loan, resulting in gross debt of approximately $4 billion [16] Q&A Session Summary Question: Industry conditions in semiconductors - The current industry conditions are mixed, with strong AI-related demand but subdued fab utilization levels in mainstream logic and NAND [27][28] Question: China business activity - The China business started slow in Q2 but saw an 8% sequential increase in the latter part of the quarter after tariffs were put on hold [32] Question: Q3 guidance scenarios - The guidance for Q3 reflects a mix of favorable wafer start environment and ongoing tariff uncertainties, making it difficult to predict exact impacts [36][37] Question: Inventory adjustment process - The inventory adjustment process is ongoing, and while it impacts gross margins, the focus remains on optimizing free cash flow [83] Question: Transition of U.S. business to Asia - The company expects to serve about 85% of China demand from Asian manufacturing sites by year-end, with a goal of reaching 95% next year [39][66]

Trade Policy Impact - Donald Trump's trade policies are forcing Chinese factory owners and workers to adapt and explore new markets [1] - The policies raise the question of whether production will shift to the US [1]