What QUALCOMM Incorporated told the SEC could break it.

Qualcomm derives a significant portion of revenue from Chinese OEMs; under Chinese government self-sufficiency policies or U.S./China actions, those customers have developed and may further develop their own integrated circuits, materially harming QCT revenue.

“we derive a significant portion of our revenues from Chinese OEMs. Certain of our customers in China have developed, and others may in the future develop, their own integrated circuit products and use such integrated circuit products in their devices rather than our products, including due to pressure from or policies of the Chinese government”

Qualcomm's key suppliers and their foundries/assembly-test facilities are primarily in Taiwan and Korea; its RFFE/RF manufacturing is in China, Germany and Singapore; finished-goods warehouses are in Singapore; and a significant portion of its workforce is in India — concentrating exposure to China-Taiwan tensions, war and natural disasters.

“our key suppliers and their manufacturing foundries and assembly, test and other facilities are primarily located in Taiwan and Korea; our manufacturing facilities for RFFE and RF products are located in China, Germany and Singapore; the primary warehouses where we store finished goods for fulfillment of customer orders are located in Singapore; and a significant portion of our workforce (including engineering and other technical personnel) is based in India.”

Three unnamed customers/licensees individually accounted for approximately 21%, 20% and 13% of Qualcomm's revenue — extreme concentration, heightened by the risk that large customers vertically integrate and use their own integrated circuits instead of Qualcomm's.

“x) 21 % 22 % 27 % Customer/licensee (y) 20 19 21 Customer/licensee (z) 13 12 * * Less than 10%”

Qualcomm relies on sole- or limited-source suppliers for some products, particularly in its QCT segment, with raw materials/equipment/supplies coming from a limited number of suppliers (sometimes sole) particularly in Asia — exposing it to shortages from disasters, geopolitical conflict or quality/delivery failures.

“We rely on sole- or limited-source suppliers for some products, particularly products in our QCT segment, subjecting us to possible shortages of raw materials or manufacturing capacity.”

Because it expects to perpetually be subject to the 15% Corporate Alternative Minimum Tax, Qualcomm no longer expects to realize substantially all of its existing federal deferred tax assets and recorded a $5.7 billion income-tax charge in Q4 fiscal 2025 to establish a valuation allowance.

“As we expect to perpetually be subject to CAMT, we no longer expect to realize substantially all of our existing federal deferred tax assets and recognized a charge of $5.7 billion to income tax expense to establish a valuation allowance in the fourth quarter of fiscal 2025.”