AOSL · CIK 0001387467
What Alpha & Omega Semiconductor Ltd. told the SEC could break it.
Almost everything Alpha & Omega flagged ties back to China and to a handful of intermediaries: its in-house packaging and testing sit in Shanghai and its joint-venture fab in Chongqing, with most of its workforce in China, while two distributors — WPG at 51.3% and Promate at 22.1% — together carried roughly 73% of fiscal 2025 revenue. That footprint puts it squarely in the path of escalating U.S.–China tariffs and broader trade tensions, and it leans further on outside capacity, with third-party foundries supplying about 30% of its wafers alongside the China JV for foundry and packaging.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- two distributors (WPG 51.3%, Promate 22.1%) = ~73% of revenue in FY2025high
AOS is highly dependent on two distributors — WPG Holdings (51.3%) and Promate Electronic (22.1%) — which together were ~73% of revenue in fiscal 2025 (and a rising share of revenue over the prior three years); loss of, a dispute with, or reduced orders through either distributor would materially disrupt revenue. (Both are captured as named distribution edges; this records the aggregate concentration severity.)
“Sales to WPG and Promate accounted for 51.3% and 22.1% of our revenue, respectively, for the fiscal year ended June 30, 2025”
SEC filing →As of 2025
Geographic concentration
- manufacturing and workforce concentrated in China (Shanghai packaging/testing, Chongqing JV fab); 1,475 of 2,428 employees in Chinahigh
AOS's in-house packaging and testing is in Shanghai, China and its JV fab is in Chongqing, China, and 1,475 of its 2,428 employees are located in China (with a smaller Oregon fab in the U.S.); this concentration of manufacturing and labor in China exposes it to Chinese political, economic and operational disruption and to U.S.-China decoupling.
“Our in-house and wholly-owned packaging and testing facilities are located in Shanghai, China which handle most of our packaging and testing requirements for our products.”
Regulatory & policy
- escalating U.S.-China tariffs (Chinese goods to 54%→125%; China retaliation to 125%) and geopolitical trade tensionshigh
With manufacturing in China and customers/supply chains spanning the U.S.-China divide, AOS is directly exposed to rapidly escalating tariffs — U.S. tariffs on Chinese goods rose from 10% to 20% to a stacked 54% and then 125% in early 2025, with China retaliating up to 125% — and although semiconductors were granted a reciprocal-tariff exemption, the 20% March tariff and broader trade tensions remain a material risk.
“On April 9, 2025, China responded to U.S. tariff threats by hiking its levies on U.S. imports from 34% to 84%, and the U.S. then increased new tariffs on Chinese goods to 125%.”
Supplier concentration
- reliance on third-party foundries (~30% of wafer supply) and the JV Company for foundry/packaging capacitymedium
AOS allocates wafer production between its own Oregon fab and third-party foundries, with third parties supplying roughly 30% of total wafer supply, and it also relies on the JV Company (Chongqing Fab) for foundry capacity and packaging/testing; if these third-party foundries cannot provide sufficient capacity or favorable pricing — and AOS cannot quickly re-allocate to its own fab — its operations and results could be adversely affected.
“Currently wafers from our third-party accounts for around 30% of AOS's total wafer supply.”
SEC filing →As of 2025
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
WPG Holdings Limited
“our two largest distributors were WPG Holdings Limited, or WPG, and Promate Electronic Co. Ltd., or Promate. Sales to WPG and Promate accounted for 51.3% and 22.1% of our revenue, respectively, for the fiscal year ended June 30, 2025”
Cited →Promate Electronic Co. Ltd.
“our two largest distributors were WPG Holdings Limited, or WPG, and Promate Electronic Co. Ltd., or Promate. Sales to WPG and Promate accounted for 51.3% and 22.1% of our revenue, respectively, for the fiscal year ended June 30, 2025”
Cited →
Its suppliers
AOS Chongqing JV Company (Chongqing Fab)
“we owned approximately 39.2% of outstanding equity interest in a joint venture company (the “JV Company”) that operates a power semiconductor packaging, testing and 12-inch wafer fabrication facility (“Fab”, “Chongqing Fab” ) in the LiangJiang New Area of Chongqing, China, and the JV Company is an important supplier of wafers and assembly and test services to us.”
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