Risk Factors Update Summary

• The average selling prices of our products may decrease, adversely affecting our financial results. This change could lead to a reduction in revenue and profitability.
• Additional risks and uncertainties not currently known may harm our business and financial condition. This change might result in increased investor caution.
• The inability to perform contractual obligations could lead to significant costs, including indemnification obligations. This change might result in increased operational expenses.
• Failure to realize the expected benefits from the VMware Merger could adversely affect our business and stock value.
• A significant reduction in demand or loss of one or more significant customers may adversely affect our business. This change highlights potential revenue risks.
• The trend toward consolidation in the industry may result in competitors with greater resources. This could adversely impact our market position and competitive edge.
• Our semiconductor products must comply with various technical standards, which could increase complexity and costs. Non-compliance may result in significant fines and operational disruptions.
• Sales to distributors accounted for **57%** of our net revenue in fiscal year **2024**, up from **48%** in **2023**. This change indicates increased reliance on distributor sales.
• Dependence on contract manufacturing and suppliers of critical components may adversely affect our ability to bring products to market. This change emphasizes supply chain vulnerabilities.
• Compliance with evolving ESG regulations could increase our compliance costs significantly. This change might lead to higher operational expenses and affect profitability.