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On February 24, 2025, after the market closed, Ultra Clean issued a press release announcing its fourth quarter and full-year 2024 financial results. The company highlighted a slowdown in its “in China, for China” business. As such, the company now anticipates a flat to declining overall performance in the first half of 2025. Ultra Clean blamed the slowdown on a combination of both decreased demand, extended qualification times, and excess inventory from both its semiconductor and semi-cap customers. Interestingly, these setbacks are occurring despite Ultra Clean claiming to continue to be able to ship to Chinese semi-cap customers on the restricted export list by manufacturing and engineering the goods in China as a facet of their “in China, for China” business.
Following this news, Ultra Clean’s stock price fell by $8.81 per share to open at $27.26 per share.