Materion higher 3Q volumes outlook strengthens on ex-China semiconductor demand

Materion

Tariffs shift orders, but Materion higher 3Q volumes still in sight

Materion higher 3Q volumes remain on track as orders accelerate outside China. The company flagged softer China shipments as tariffs escalated. However, non-China semiconductor demand rose 15pc, supporting Materion higher 3Q volumes into the second half.

Korea asset adds capacity as Materion higher 3Q volumes target grows

Materion acquired tantalum manufacturing assets in Dangjin, South Korea. The move improves supply to leading Asian chipmakers and shortens lead times. As a result, Materion anticipates stronger regional volumes and better mix resilience.

Global end markets should also aid growth despite trade headwinds. Management cited aerospace, defense, and energy demand as supportive. Meanwhile, tariff uncertainty continues to redirect Chinese semiconductor sourcing.

Second-quarter sales slipped 2pc from the prior quarter on weaker China demand. Still, quarterly profit climbed to $25.1mn from $19mn last year. Therefore, execution on capacity and diversification offsets near-term pricing noise.

The Metalnomist Commentary

Materion’s pivot from China toward diversified Asian and US buyers looks timely. Capacity in Korea and semiconductor restocking could cushion tariff volatility. Watch tantalum supply, aerospace build rates, and any further tariff resets for risk.