Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 20

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 1A
Chunk 20
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 manufacturing operations in the United States or with a broader geographic manufacturing footprint may be better positioned to meet evolving customer requirements, which could place us at a competitive disadvantage. 

We are dependent on third-party manufacturing and supply chain relationships for all of our products.  Our reliance on third-party foundries and suppliers involves certain risks that may result in increased costs, delays in meeting our customers’ demand, and loss of revenue.

              We do not own or operate a semiconductor fabrication facility and do not have the resources to manufacture our products internally. We use third parties to fabricate, assemble, package, and test the vast majority of our products.  As a result, we are subject to risks associated with these third parties, including: - insufficient capacity available to meet our demand on time; - inability of our suppliers to obtain the equipment or replacement parts necessary to fully operate their facilities or expand available manufacturing capacity;- inadequate manufacturing yields and excessive costs; - inability of these third parties to obtain an adequate supply of raw materials; - extended lead times on supplies used in the manufacturing of our products; - difficulties selecting and integrating new subcontractors; - limited warranties on products supplied to us; - potential increases in prices (including the cost of freight and potential tariffs); and - increased exposure to potential misappropriation of our intellectual property.               Outside of our long-term supply agreement for wafer fabrication supply with GlobalFoundries, our outside foundries and assembly and test suppliers generally manufacture our products on a purchase order basis, and we have few other long-term supply arrangements with these suppliers.  Therefore, our third-party manufacturers and suppliers are not obligated to supply us with products for any specific period of time, quantity, or price, except as may be provided in any particular purchase order or in relation to an existing supply agreement.  A manufacturing or supply disruption experienced by one or more of our outside suppliers or a disruption of our relationship with an outside foundry could negatively impact the production of certain of our products for a substantial period of time.               We have experienced the effects of industry-wide manufacturing capacity constraints.  These supply challenges have impacted, and may continue to impact, our ability to fully satisfy increases in demand for some of our products.  We do not typically manufacture the majority of these products at more than one foundry or more than one assembly and test subcontractor, and the costs and effort associated with the potential transfer of any portion of our supply chain to a backup supplier would likely be substantial.  Therefore, if one or more of our third-party manufacturers and suppliers are