Company: DSWL
Filing Date: 2025-04-21
Form Type: CORRESP
Source: 0001174947-25-000600
Chunk: 8

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-04-21
Form: CORRESP
Chunk 8
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 oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers could significantly     
 limit or completely hinder your ability to offer or continue to offer securities to investors and cause the value of your securities to   
 significantly decline or be worthless.                                                                                                    |

Response:In response to the Staff’s comment, the Company respectfully proposes to revise the disclosure in its future filings on Form 20-F (with strikethroughs and underlines showing the changes against the disclosure in the Annual Report) as follows: Part I, Item 3. Key Information, Summary of Risk Factors, page 6 “…

| · | The Chinese government could intervene in                                                                                               
 or influence our operations at any time and could change its policies toward or even nationalize private enterprise, which could result 
 in the total loss of our investment in that country.                                                                                    |

| · | The Chinese government could intervene in                                                                                              
 or influence the conduct of our directors or officers with ties to Hong Kong at any time, which could materially impact our results of 
 operations.                                                                                                                            |

April 21, 2025
Page 13

| · | Recent developments in Chinese law related                                                                                               
 to overseas securities offerings by China-based issuers may hinder our ability to offer or continue to offer our securities to investors 
 and cause the value of our securities to significantly decline or be worthless.                                                          |

| · | Adverse changes in political and economic policies                                                                                     
 of the PRC government could effect the overall economic growth of China, which could reduce the demand for our services and affect our 
 competitive position.                                                                                                                  |

| · | There may be a lack of remedies and impartiality                                                                    
 under the Chinese legal system that prevents us from enforcing the agreements under which we operate our factories. |

| · | You may experience difficulties in effecting                                                                                                
 service of legal process, enforcing foreign judgments or bringing actions in the PRC against the Company, or our officers and our directors 
 based on foreign laws.                                                                                                                      |

| · | Our financial results, competitiveness and market                             
 position could be impaired if our business licenses in China are not renewed. |

| · | The performance and reliability of the internet                                         
 infrastructure and fixed telecommunication in China may affect our business operations. |

| · | Due to restrictions under PRC law on distributions                                                                                           
 of dividends by our subsidiaries in the PRC, we may be forced to reduce the amount of, or not be able to pay, dividends to our shareholders. |

| · | PRC regulations may delay