Ultra Clean Holdings, Inc.

16. GOVERNMENT SUBSIDIES

In September 2021, the Company’s manufacturing operations in Singapore were awarded a grant of up to $1.7 million from the Singapore Economic Development Board, which provides incentive grant payments for research and innovation in Singapore. Under this agreement, the Company recorded subsidies of $0.3 million in fiscal year 2025, $0.2 million in fiscal year 2024 and $0.8 million in fiscal year 2023. These subsidies were recorded as an offset to cost of revenues and other operating expenses.

The Company also received unconditional subsidies from the Chinese government of $2.3 million, $0.4 million and $1.9 million in fiscal years 2025, 2024 and 2023, respectively. These subsidies were recognized as other income (expense), net in the Consolidated Statements of Operations.

In fiscal year 2025, the Company received an asset-related government grant of $2.9 million from the Israeli government, which was recorded as a reduction of the carrying amount of the related property, plant and equipment, and a grant of $0.4 million from the Irish government to support payroll expenses, which was recorded as an offset to cost of revenues and other operating expenses.