Risk Factors Update Summary

• Executing the Separation may divert management's attention, adversely affecting business and financial results. This change might result in increased operational costs and potential revenue loss.
• The Separation could expose us to new risks regarding our existing indebtedness and future capital structure. If not successful, it may lead to significant financial instability.
• If the U.S. dollar weakens, component prices may rise, impacting profit margins and costs.
• Following the Separation, we will not rely on the Flash business unit for cash flow, adversely affecting our ability to service debt. This could lead to increased financial strain.
• Increased credit risks arise from subcontractor models with OEM customers, affecting operating costs and margins.
• Litigation risks from IP disputes could lead to costly settlements or injunctions, harming business operations.
• We incurred $252 million and $296 million in charges for unabsorbed manufacturing overhead costs in 2024 and 2023, respectively, due to reduced utilization. This indicates ongoing operational challenges.
• Compliance with evolving data privacy laws may lead to substantial costs and legal liabilities, impacting operations.
• Changes in tax laws globally may increase our effective tax rate, impacting financial position. The global corporate minimum tax rate of 15% could significantly raise our tax obligations.
• Climate change legislation could increase compliance costs and operational complexities, affecting business performance.