Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 80

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 1A
Chunk 80
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Item 1A.Risk Factors 

Our operations and financial results are subject to various risks and uncertainties, including those described below, that could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of our common stock. 

Risk Factor Summary 

Risks Related to Our Business

•Our operating results and financial conditions are affected by downturns in the semiconductor industry, changes in end-market demand and other macro-economic trends. 

•The decline of personal computing (“PC”) markets may have a material adverse effect on our results of operations.

•Our strategy of diversification into different market segments may not succeed according to our expectations and may expose us to new risks and place significant strains on our management, operational, financial and other resources.

•Our operating results may fluctuate from period to period due to many factors, which may make it difficult to predict our future performance.

•Geopolitical and economic conflicts between United States and China may adversely affect our business.

•Our revenue may fluctuate significantly from period to period due to ordering patterns from our distributors and seasonality.

•We may not be able to introduce or develop new and enhanced products that meet or are compatible with our customer’s product requirements in a timely manner.

•We may not win sufficient designs, or our design wins may not generate sufficient revenue for us to maintain or expand our business.

•Our success depends upon the ability of our OEM end customers to successfully sell products incorporating our products.

•The operation of our Oregon Fab subjects us to additional risks and the need for additional capital expenditures which may negatively impact our results of operations. 

•Defects and poor performance in our products could result in loss of customers, decreased revenue, unexpected expenses and loss of market share, and we may face warranty and product liability claims arising from defective products.

•The average selling prices of products in our markets have historically decreased rapidly and will likely do so in the future, which could harm our revenue and gross margins.

•If we do not forecast demand for our products accurately, we may experience product shortages, delays in product shipment, excess product inventory, or difficulties in planning expenses, which will adversely affect our business and financial condition.

•We face intense competition and may not be able to compete effectively which could reduce our revenue and market share.

•Our reliance on third-party semiconductor foundries to manufacture our products subjects us to risks.

•Our lack of control over the JV Company may adversely affect our operations.

•Our recent sale of equity interest in the JV Company is subject to