1. Alpha & Omega Semiconductor is like Texas Instruments, but with a sharper focus on power management components for a wide range of electronic devices.

2. Alpha & Omega Semiconductor is like a specialized Infineon Technologies, concentrating on power semiconductors for diverse applications.

• Power MOSFETs: These are semiconductor switches optimized for high-efficiency power conversion and management in various electronic devices.
• Power ICs (Integrated Circuits): These integrated circuits manage and regulate power in electronic systems, including power delivery, conversion, and battery management functions.
• IGBTs (Insulated Gate Bipolar Transistors): These power semiconductor devices combine the characteristics of MOSFETs and bipolar transistors, suitable for high-voltage and high-current applications.
• SiC Power Devices (Silicon Carbide): Utilizing silicon carbide material, these advanced power semiconductors offer superior efficiency and performance for high-power, high-temperature, and high-frequency applications.
• TVS (Transient Voltage Suppressors) and Diodes: These discrete semiconductor devices provide circuit protection against voltage surges and are used for rectification in power supplies.

Stephen C. Chang, Chief Executive Officer and Director

Mr. Chang was appointed Chief Executive Officer in March 2023, having previously served as the company's President since January 2021. He has over 20 years of industry experience, having held various management positions at Alpha & Omega Semiconductor, including Executive Vice President of Product Line Management, Senior Vice President of Marketing, Vice President of the MOSFET Product Line, and Senior Director of Product Marketing. He is responsible for leading the company's business strategies, product and technology development, sales and marketing functions, manufacturing operations, and supply chain management.

Yifan Liang, Chief Financial Officer and Corporate Secretary

Mr. Liang has served as Chief Financial Officer since August 2014 and Corporate Secretary since November 2013. His roles at Alpha & Omega Semiconductor also include Interim Chief Financial Officer from November 2013 to August 2014 and Chief Accounting Officer since October 2006. Mr. Liang joined the company in August 2004 as Corporate Controller. Prior to his tenure at Alpha & Omega Semiconductor, he held various positions at PricewaterhouseCoopers LLP (PwC) from 1995 to 2004, including Audit Manager.

Mike F. Chang, Chairman of the Board and Executive Vice President of Strategic Initiatives

Dr. Chang is a co-founder of Alpha & Omega Semiconductor, which was established in 2000. He served as the Chief Executive Officer from the company's founding until March 2023. Before establishing Alpha & Omega Semiconductor, Dr. Chang was the Executive Vice President at Siliconix Incorporated, a subsidiary of Vishay Intertechnology Inc., from 1998 to 2000. He also held various management positions at Siliconix from 1987 to 1998. Earlier in his career, from 1974 to 1987, Dr. Chang focused on product research and development in various management roles at General Electric Company. He is currently the President of Jireh Semiconductor, Inc.

Wenjun Li, Chief Operating Officer

Dr. Li has been the Chief Operating Officer since August 2021. Before this role, he held various management positions within Alpha & Omega Semiconductor since 2012, including Executive Vice President of World-Wide Manufacturing, Senior Vice President of World-Wide Manufacturing, Vice President of Front-End Operation, Director of Process Integration, and Senior Manager of Process Integration. Dr. Li possesses over 25 years of hands-on experience in the semiconductor field.

Bing Xue, Executive Vice President of Worldwide Sales & Business Development

Dr. Xue has served as Executive Vice President of Worldwide Sales and Business Development since January 2021. He has held numerous managerial positions at Alpha & Omega Semiconductor since 2003, including Senior Vice President of Global Sales, Vice President of Global Sales, Vice President of Worldwide Manufacturing, and General Manager of China Operation. Prior to joining the company, Dr. Xue was the Director of Engineering at Dowslake Microsystems Corporation from 2001 to 2003.

The most significant risk to Alpha & Omega Semiconductor's business is the **cyclicality of the semiconductor industry and fluctuations in market demand**, particularly the decline in PC markets. The semiconductor industry is inherently volatile, with demand for AOSL's products being heavily influenced by global economic conditions, broader industry trends, and ongoing technological advancements. Recent financial reports indicate slowing demand and caution around end-market fluctuations, especially in cyclical sectors like PCs and consumer electronics, which directly impact revenue and overall financial performance.

Another prominent risk is the **intense competition and ongoing margin pressure** within the power semiconductor market. Alpha & Omega Semiconductor operates in a highly competitive landscape with numerous larger competitors, including Infineon Technologies, ON Semiconductor, Vishay Intertechnology, Power Integrations, Taiwan Semiconductor, Texas Instruments, Diodes, and Microchip Technology. These competitors often possess larger research and development budgets and more extensive customer networks, making product differentiation and innovation critical for AOSL to maintain and grow its market share. This competitive environment contributes to persistent pressure on the company's profit margins.

Finally, **geopolitical tensions and changes in the regulatory environment, particularly concerning China**, pose a notable risk. As China represents a significant market for AOSL, the company is vulnerable to trade tensions, such as those between the U.S. and China, and evolving tariff and trade policies. Government policies affecting business operations in China could impact AOSL's access to crucial components and its overall market presence.

The accelerating adoption and increasing technological dominance of Wide Bandgap (WBG) semiconductors, specifically Silicon Carbide (SiC) and Gallium Nitride (GaN), represent a clear emerging threat. While Alpha & Omega Semiconductor (AOSL) does have some WBG offerings, they are not a market leader in this rapidly expanding segment. SiC and GaN offer superior performance characteristics (e.g., higher efficiency, power density, and switching frequencies) compared to traditional silicon-based power devices, making them increasingly preferred in high-growth and high-value applications such as electric vehicles (EVs), EV charging infrastructure, renewable energy inverters, and data center power supplies. If the market shifts towards WBG technologies faster or more extensively than AOSL can adapt its product portfolio and gain market share, a significant portion of their traditional silicon-based power device revenue could be displaced, similar to how digital photography threatened film or streaming threatened physical media.

Alpha & Omega Semiconductor (AOSL) addresses several key markets with its power semiconductor products, which include power discrete products like MOSFETs, and power ICs for controlling and regulating power management variables. The company has a global presence, serving markets in Hong Kong, China, South Korea, the United States, and other international regions.

• The addressable market for the computing sector is estimated to be $2 billion.
• The power supply market is projected to reach approximately $45 billion globally by 2029.
• AOSL is also actively targeting the home appliances market, which represents a $2 billion market.

Additionally, AOSL is strategically expanding its focus into high-growth areas such as graphics, artificial intelligence (AI), and data center power applications.

• Expansion in High-Growth AI and Data Center Markets: AOSL is strategically positioning itself to capitalize on the increasing demand for power solutions in artificial intelligence (AI), graphics, and data center applications. The company is actively supporting advanced power architectures, such as 800 VDC for next-generation AI factories, utilizing its innovative SiC and GaN power devices to deliver efficient power delivery for escalating AI workloads. This focus aims to leverage the exponential growth in computational power required for machine learning and large language models.
• Continued Growth and Transformation in Power IC Segment: The Power IC segment has consistently demonstrated strong performance, achieving record quarterly highs and significantly contributing to AOSL's total product revenue. This growth is fueled by demand from the graphics, AI, gaming, and PC markets. AOSL is also transitioning from a component supplier to a comprehensive solutions provider, which is expected to further enhance its market position and gross margins.
• New Product Innovation, particularly in Wide Bandgap (SiC and GaN) Technologies: AOSL is investing in and developing advanced power management technologies, including wide bandgap semiconductors like Silicon Carbide (SiC) and Gallium Nitride (GaN). These technologies are crucial for addressing the increasingly complex power requirements of advanced electronics and are key to their offerings for high-voltage conversion and high-density DC-DC conversion in new applications like AI data centers.
• Strengthening Core Computing and Communications Segments: While navigating market dynamics, AOSL continues to build on its core strengths in the computing and communications sectors, including PCs and smartphones. The company has seen growth driven by product launches from Tier 1 smartphone customers and improved smartphone sales in certain regions, indicating sustained demand and market share capture with leading global OEMs.

Capital Allocation Decisions for Alpha & Omega Semiconductor (AOSL)

Share Repurchases

• As of March 31, 2024, no amount remained available under the previously approved $30.0 million share repurchase program, which was initially authorized in September 2017.

Share Issuance

• The number of shares outstanding for AOSL increased by 4.14% in the year leading up to June 30, 2025, reaching 30.04 million shares.
• Treasury shares may be reissued as part of the company's share-based compensation programs.
• Insider activity includes non-open market acquisitions and dispositions of shares by officers, such as an acquisition of 125,000 shares and a disposition of 14,721 shares by an officer on March 17, 2025.

Inbound Investments

• Alpha & Omega Semiconductor (AOSL) received a $94 million installment in fiscal Q1 2026 (ended September 30, 2025) from the sale of a portion of its equity interest in a China joint venture.
• The company agreed to sell approximately 20.3% of its equity interest in its Chongqing, China joint venture (CQJV) for an aggregate cash consideration of $150 million, to be paid in four installments, with the transaction expected to close before the end of 2025.
• The proceeds from this sale are intended to strengthen the balance sheet and accelerate strategic investments in technology, equipment, and engineering talent, focusing on areas like smartphones, PCs, AI, and 800-volt AI power architecture.

Outbound Investments

• Proceeds from the joint venture sale are planned for strategic investments in technology, research and development projects, and the acquisition of assets that complement AOSL's business operations.

Capital Expenditures

• Capital expenditures for the first quarter of fiscal year 2026 (ended September 30, 2025) were $9.8 million.
• Capital expenditures for the prior quarter (Q4 fiscal year 2025) were $14.3 million.
• For the December quarter (Q2 fiscal year 2026), Alpha & Omega Semiconductor expects capital expenditures to range from $14 million to $16 million.