Company: AOSL
Filing Date: 2025-08-28
Form Type: 10-K
Source: 0001628280-25-041297
Chunk: 70

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-08-28
Form: 10-K
Item: Item 1
Chunk 70
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 and retain analog semiconductor designers and application engineers; and

•ability to protect our intellectual property.

Some of our competitors have longer operating histories, more brand recognition, and significantly greater financial, technical, research and development, sales and marketing, manufacturing and other resources.  However, we believe that we can compete effectively through our integrated and innovative technology platform and design capabilities, including our strong and extensive patent portfolio, strategic global business model, expanding suites of new products, diversified and broad customer base, and excellent on-the-ground support and quick time to market for our products.

 Seasonality

Our business is subject to seasonal fluctuations, primarily due to our involvement in the power semiconductor market for consumer electronic products. Sales seasonality is influenced by various factors, including global and regional economic conditions, trends within the personal computer (PC) market, revenue contributions from newly introduced products, variations in distributor ordering behavior driven by channel inventory adjustments, and end-customer demand. Additionally, fluctuations in consumer purchasing patterns—particularly leading up to major holiday seasons—also contribute to the seasonal nature of our revenue.  Our revenue is subject to some seasonal variation.  Historically, our sequential revenue growth rate tends to be weaker in the March and December quarters when compared with other quarters.

7

Research and development    

We view technology as a competitive advantage, and we invest significant time and capital in research and development to address the technology-intensive needs of our end customers.  Our research and development expenditures for the fiscal years of 2025, 2024 and 2023 were $94.3 million, $89.9 million and $88.1 million, respectively.  We continue to invest in developing new technologies and products utilizing our own fabrication and packaging facilities as it is critical to our long-term success.  We also evaluate appropriate investment levels and stay focused on new product introductions to improve our competitiveness.  We have research and development teams in Silicon Valley (Sunnyvale, California), Oregon, Texas, Arizona, Korea, Taiwan, and China.  We believe that these diverse research and development teams enable us to develop leading edge technology platforms and new products.  Our areas of research and development focus include:

Packaging technologies: Consumer demand for smaller and more compact electronic devices with higher power density is driving the need for advanced packaging technology.  Our group of dedicated packaging engineers focuses on smaller form factors, and higher power output with efficient heat dissipation and cost-effectiveness.  We have invested resources in developing and enhancing our proprietary packaging technologies, including the establishment of