Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 52

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 4
Chunk 52
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•double injection caps;

•parts for medical products such as apparatus for blood tests;

•laser key caps;

•automobile components; and

•plastic components of automatic robot (mop & vacuum).

Electronic products manufactured by the Company include:

•sophisticated professional audio equipment including digital and analogue audio mixers, amplifiers, signal processors, audio interfaces, network audio equipment and speaker enclosures;

•high performance consumer audio products, such as multi-channelreceivers and amplifiers, wired and wireless audio streaming products, headphones;

•complex printed circuit board assemblies using surface mount technology (“ SMT”), automatic insertion (“ AI”) and pin-through-hole(“ PTH”) interconnection technologies; and

•medical products.

Historically, metal products manufactured by the Company included metallic molds and necessary parts used in audio equipment, telephones, copying machines, pay telephones, multimedia stations, automatic teller machines, vending machines, and more. As manufacturing of metallic components is a production process that may emit pollutants, during the year ended March,31, 2015 the Company gradually outsourced manufacturing of the metal components used in assembly of the Company’s audio products. Since March, 2015, all the metallic components used in assembly of the Company’s audio products were provided by third party suppliers.

As part of its manufacturing operations, the Company consults with its customers in the design of plastic parts and the design and production of the molds used to manufacture plastic parts, which are made by Deswell at its customers’ expense, and provides advice and assistance in the design and manufacturing of printed circuit boards. The Company believes that its ability to manufacture or assemble high-endplastic and metallic accessory parts of the quality required by OEMs and contract manufacturers which furnish products and services internationally, Deswell’s expertise in designing and manufacturing molds for its customers and the Company’s low production costs distinguish Deswell from most other manufacturers of plastic products and provide it with a competitive advantage. However, this advantage has been difficult to maintain as a result of increased competition and increased production overheads during the last three fiscal years.

Table of Contents

Industry Overview

Management believes that the injection molding and parts manufacturing industries have each benefited in recent years from a trend among major users of injection molded and metal products to outsource an increasing portion of the parts requirements and to select a small number of suppliers or a sole supplier to provide those products. The Company is not aware of any empirical data defining the manufacturing industry in China, however, management believes that injection molding firms which are