(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)