Company: DSWL
Filing Date: 2025-04-21
Form Type: CORRESP
Source: 0001174947-25-000600
Chunk: 6

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-04-21
Form: CORRESP
Chunk 6
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 does not incur corporate income tax or withholding tax on dividend distributions. Integrated then declared dividends to its holding company, Deswell, in the amounts of $3.19 million, $3.19 million, and $3.19 million for the three years ended March 31, 2022, March 31, 2023 and March 31, 2024, respectively. Integrated is an International Company incorporated in Samoa. Under the current Samoa Law, Integrated is not subject to corporate income tax and withholding taxes on dividend distribution as it has no business operations in Samoa. For operational efficiency, the physical transfer of funds was executed directly from KEMCO to Deswell, bypassing the intermediate holding companies, Joint Harvest and Integrated. However, the documentation and accounting records properly reflected the dividend declarations and approvals at each entity level, maintaining compliance with corporate governance requirements.” Risk Related to Doing Business in China, page 18

| 7. | Given the Chinese government’s significant oversight and discretion over the conduct and operations                                      
 of your business, in your future filings please revise to describe any material impact that intervention, influence, or control by the   
 Chinese government has or may have on your business or on the value of your securities. Highlight separately the risk that the Chinese   
 government may intervene or influence your operations at any time, which could result in a material change in your operations and/or the 
 value of your securities. We remind you that, pursuant to federal securities rules, the term “control” (including the terms              
 “controlling,” “controlled by,” and “under common control with”) means “the possession, direct                                           
 or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of  
 voting securities, by contract, or otherwise.”                                                                                           |

April 21, 2025
Page 11

Response:In response to the Staff’s comment, the
Company respectfully proposes to revise the disclosure in its future filings on Form 20-F (with strikethroughs and underlines showing
the changes against the disclosure in the Annual Report) as follows:

Part I, Item 3. Key Information, Risk Factors, page 18

“Risks Related to Doing Business in China

“The Chinese government may intervene in or influence our operations at any time andcould change its policies toward or even nationalize private enterprise, which could result in the total loss of our investment in that country and materially and adversely affect the value of our securities.