Company: AOSL
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001387467-25-000044
Chunk: 138

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 4
Chunk 138
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We have in the past, and may from time to time in the future, become involved in legal proceedings arising from the normal course of business activities.  The semiconductor industry is characterized by frequent claims and litigation, including claims regarding patent and other intellectual property rights as well as improper hiring practices. Irrespective of the validity of such claims, we could incur significant costs in the defense thereof or could suffer adverse effects on its operations.

ITEM 1A.   RISK FACTORS   

Item 1A of Part I of our Annual Report on Form 10-K for the year ended June 30, 2024, filed with the SEC on August 23, 2024, contains risk factors identified by the Company.  Except as noted below, there have been no material changes to the risk factors we previously disclosed in our filings with the SEC. Our operations could also be affected by additional factors that are not presently known to us or by factors that we currently consider immaterial to our business.

Changes in tariffs and international trade policies affecting imports and exports may have a material adverse effect on our business operations and financial performance.

The U.S. has recently proposed the implementation of a range of new tariffs and significant increases to existing tariffs. In response to such tariffs announced by the U.S., other countries have imposed or are considering imposing new or increased tariffs on certain exports from the U.S.  There is currently significant uncertainty about the future relationship between the U.S. and other countries with respect to tariffs, trade policies, taxes and other related government regulations, and we cannot predict whether, and to what extent, current tariffs will continue or 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 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.  In addition, retaliatory tariffs from other countries could have a significant negative impact on our business overseas that rely on imports of goods and products from the U.S.  Furthermore, tariffs, or the threat of tariffs or increased tariffs, could have a significant negative impact on our