Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 103

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 1A
Chunk 103
---
 covered by insurance against business disruption caused by earthquakes.  In addition, we 

25

currently do not have redundant, multiple site capacity in the event of a natural disaster or other catastrophic event.  In the event of such an occurrence, our business would suffer.

Our business could be adversely affected by natural disasters such as epidemics, outbreaks or other health crisis.  An outbreak of avian flu or H1N1 flu in the human population, or another similar health crisis similar to the COVID-19 pandemic, could adversely affect the economies and financial markets of many countries, particularly in Asia.  Moreover, any related disruptions to transportation or the free movement of persons could hamper our operations and force us to close our offices temporarily.

The occurrence of any of the foregoing or other natural or man-made disasters could cause damage or disruption to us, our employees, operations, distribution channels, markets and customers, which could result in significant delays in deliveries or substantial shortages of our products and adversely affect our business results of operations, financial condition or prospects.

Our insurance may not cover all losses, including losses resulting from business disruption or product liability claims.

We have limited product liability, business disruption or other business insurance coverage for our operations.  In addition, we do not have any business insurance coverage for our operations to cover losses that may be caused by litigation or natural disasters.  Any occurrence of uncovered loss could harm our business, results of operations, financial condition and prospects.

Our international operations subject our company to risks not faced by companies without international operations.

We have adopted a global business model under which we maintain significant operations and facilities through our subsidiaries located in the U.S., China, Taiwan and Hong Kong.  Our main research and development center is located in Silicon Valley, and our manufacturing and supply chain is located in China.  We also have sales offices and customers throughout Asia, the U.S. and elsewhere in the world.  Our international operations may subject us to the following risks:

•economic and political instability, including trade tension between the U.S. and China;

•costs and delays associated with transportations and communications;

•coordination of operations through multiple jurisdictions and time zones;

•fluctuations in foreign currency exchange rates;

•trade restrictions, changes in laws and regulations relating to, amongst other things, import and export tariffs, taxation, environmental regulations, land use rights and property; and

•the laws of, including tax laws, and the policies of the U.S. toward, countries in which we operate.

If we fail to