Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 109

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 1A
Chunk 109
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 defined and implemented. Other countries, like China, are still in ongoing negotiations with the U.S. regarding tariffs, and it is unclear what the final tariff rate may be. Additionally, there is a pending investigation in the United States into the national security impact of imports of semiconductors and semiconductor manufacturing equipment, which may result in tariffs on such imports from all countries. There is thus still significant uncertainty about future U.S. tariff rates, and we cannot predict whether, and to what extent, current tariffs will continue or U.S. trade policies will change in the future.  Such uncertainties and risks may negatively affect our ability to enter into new business transactions with partners, vendors and 

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customers because of the lack of clarity on the economic benefits of such transactions.  Significant increase in U.S. tariffs may increase the costs of materials, goods and components that we purchase from suppliers from other countries for the manufacturing and distribution of our products, which may adversely affect our financial performance.  Also, we may not be able to mitigate the impact of tariffs by identifying and securing alternative sources in the U.S. for similar materials, goods and components at comparable qualities or more favorable prices.  Furthermore, tariffs, or the threat of tariffs or increased tariffs, could have a significant negative impact on our business relationships with customers, suppliers and partners in Asia, including China, Hong Kong, Taiwan, Korea and Japan.  Any significant changes in trade policies and tariffs may also affect the business operations of our customers, suppliers and partners, which may cause them to take actions or make decisions that adversely affect our business operations and results of operations.

Risks Related to Doing Business in China

China’s economic, political and social conditions, as well as government policies, could affect our business and growth.

Our financial results have been, and are expected to continue to be, affected by the economy in China.  If China’s economy is slowing down, it may negatively affect our business operation and financial results.  The China economy differs from the economies of most developed countries in many respects, including:

•higher level of government involvement;

•early stage of development of a market-oriented economy;

•rapid growth rate;

•higher level of control over foreign currency exchange; and

•less efficient allocation of resources.

The Chinese economy has been transitioning from a planned economy to a more market-oriented economy.  Although in recent years the Chinese government has implemented measures emphasizing the utilization of market forces for economic reform, the reduction of state ownership of productive assets and the establishment of corporate governance in