10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________

FORM 10-Q

_________________________________

(MARK ONE)

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

        For the quarterly period ended March 31, 2024

OR

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM              TO             

Commission file number 001-34717

__________________________

Alpha and Omega Semiconductor Limited

(Exact name of Registrant as Specified in its Charter)

Bermuda	77-0553536
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

Clarendon House, 2 Church Street

Hamilton HM 11, Bermuda

(Address of Principal Registered

Offices including Zip Code)

(408) 830-9742

(Registrant's Telephone Number, Including Area Code)

__________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒     No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐
				(Do not check if a smaller reporting company)
Smaller reporting company	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares	AOSL	The NASDAQ Global Select Market

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Number of common shares outstanding as of April 30, 2024: 28,701,746

Alpha and Omega Semiconductor Limited

Form 10-Q

Fiscal Second Quarter Ended March 31, 2024

TABLE OF CONTENTS

		Page
Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements:	1
	Condensed Consolidated Balance Sheets as of March 31, 2024 and June 30, 2023 (Unaudited)	1
	Condensed Consolidated Statements of Income (Loss) for the Three and Nine Months Ended March 31, 2024 and 2023 (Unaudited)	2
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended March 31, 2024 and 2023 (Unaudited)	3
	Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three and Nine Months Ended March 31, 2024 and 2023 (Unaudited)	4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2024 and 2023 (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4.	Controls and Procedures	46
Part II.	OTHER INFORMATION
Item 1.	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 3.	Defaults Upon Senior Securities	49
Item 4.	Mine Safety Disclosures	49
Item 5.	Other Information	49
Item 6.	Exhibits	50
	Signatures	51

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

ALPHA AND OMEGA SEMICONDUCTOR LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands except par value per share)
	March 31, 2024		June 30, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	174,387	$	195,188
Restricted cash	208		415
Accounts receivable, net	13,254		22,420
Inventories	198,098		183,247
Other current assets	8,604		22,666
Total current assets	394,551		423,936
Property, plant and equipment, net	339,515		357,831
Operating lease right-of-use assets	24,421		24,349
Intangible assets, net	4,328		6,765
Equity method investment	359,244		366,617
Deferred income tax assets	499		536
Other long-term assets	31,491		19,703
Total assets	$	1,154,049	$	1,199,737
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	42,513	$	50,775
Accrued liabilities	73,587		79,533
Payable related to equity investee, net	14,275		11,950
Income taxes payable	4,490		5,546
Short-term debt	11,584		11,434
Deferred revenue	7,664		8,073
Finance lease liabilities	917		867
Operating lease liabilities	4,909		4,383
Total current liabilities	159,939		172,561
Long-term debt	29,653		38,360
Income taxes payable - long-term	2,978		2,817
Deferred income tax liabilities	26,337		27,283
Finance lease liabilities - long-term	2,522		3,216
Operating lease liabilities - long-term	20,099		20,544
Other long-term liabilities	23,584		51,037
Total liabilities	265,112		315,818
Commitments and contingencies (Note 12)
Shareholders' Equity:
Preferred shares, par value $0.002 per share:
Authorized: 10,000 shares; issued and outstanding: none at March 31, 2024 and June 30, 2023	—		—
Common shares, par value $0.002 per share:
Authorized: 100,000 shares; issued and outstanding: 35,836 shares and 28,697 shares, respectively at March 31, 2024 and 34,811 shares and 27,654 shares, respectively at June 30, 2023	72		70
Treasury shares at cost: 7,139 shares at March 31, 2024 and 7,157 shares at June 30, 2023	(79,220)		(79,365)
Additional paid-in capital	345,413		329,034
Accumulated other comprehensive loss	(11,125)		(8,111)
Retained earnings	633,797		642,291
Total shareholders' equity	888,937		883,919
Total liabilities and shareholders' equity	$	1,154,049	$	1,199,737

See accompanying notes to these condensed consolidated financial statements.

1

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Unaudited, in thousands except per share data)

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
Revenue	$	150,060	$	132,560	$	495,978	$	529,796
Cost of goods sold	114,505		101,774		365,497		374,841
Gross profit	35,555		30,786		130,481		154,955
Operating expenses
Research and development	23,095		22,578		68,127		65,435
Selling, general and administrative	22,964		22,610		64,611		69,603
Total operating expenses	46,059		45,188		132,738		135,038
Operating income (loss)	(10,504)		(14,402)		(2,257)		19,917
Other income (loss), net	308		(513)		(138)		(1,432)
Interest income (expense), net	271		5		774		(1,000)
Net income (loss) before income taxes	(9,925)		(14,910)		(1,621)		17,485
Income tax expense	611		2,517		2,643		5,550
Net income (loss) before income (loss) from equity method investment	(10,536)		(17,427)		(4,264)		11,935
Equity method investment income (loss) from equity investee	(676)		(1,480)		(4,085)		1,533
Net income (loss)	$	(11,212)	$	(18,907)	$	(8,349)	$	13,468
Net income (loss) per common share
Basic	$	(0.39)	$	(0.68)	$	(0.30)	$	0.49
Diluted	$	(0.39)	$	(0.68)	$	(0.30)	$	0.46
Weighted average number of common shares used to compute net income (loss) per share
Basic	28,433		27,710		28,022		27,537
Diluted	28,433		27,710		28,022		29,576

See accompanying notes to these condensed consolidated financial statements.

2

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in thousands)

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
Net income (loss)	$	(11,212)	$	(18,907)	$	(8,349)	$	13,468
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	2,812		3,748		(3,014)		(10,236)
Comprehensive income (loss)	$	(8,400)	$	(15,159)	$	(11,363)	$	3,232

See accompanying notes to these condensed consolidated financial statements.

3

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Unaudited, in thousands)

	Common Shares			Treasury Shares			Additional Paid-In Capital		Accumulated Other Comprehensive Income ( Loss)		Retained Earnings		Total Shareholders' Equity
	Shares	Amount		Shares	Amount
Balance, December 31, 2022	34,181	$	68	(6,616)	$	(65,990)	$	316,141	$	(12,904)	$	662,359	$	899,674
Exercise of common stock options and release of restricted stock units	611	1		—	—		531		—		—		532
Reissuance of treasury stock upon exercise of common stock options and release of RSUs	—	—		6	50		—		—		(50)		—
Withholding tax on restricted stock units	(217)	—		—	—		(5,556)		—		—		(5,556)
Repurchase of common shares under shares repurchase program	—	—		(107)	(2,665)		—		—		—		(2,665)
Share-based compensation	—	—		—	—		10,432		—		—		10,432
Net loss	—	—		—	—		—		—		(18,907)		(18,907)
Foreign currency translation adjustment, net of tax	—	—		—	—		—		3,748		—		3,748
Balance, March 31, 2023	34,575	$	69	(6,717)	$	(68,605)	$	321,548	$	(9,156)	$	643,402	$	887,258
	Common Shares			Treasury Shares			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Shareholders' Equity
	Shares	Amount		Shares	Amount
Balance, June 30, 2022	33,988	$	68	(6,617)	$	(66,000)	$	288,951	$	1,080	$	629,994	$	854,093
Exercise of common stock options and release of restricted stock units	683	1		—	—		550		—		—		551
Reissuance of treasury stock upon exercise of common stock options and release of RSUs	—	—		7	60		—		—		(60)		—
Withholding tax on restricted stock units	(233)	—		—	—		(6,152)		—		—		(6,152)
Issuance of shares under ESPP	137	—		—	—		4,080		—		—		4,080
Repurchase of common shares under shares repurchase program	—	—		(107)	(2,665)		—		—		—		(2,665)
Share-based compensation	—	—		—	—		34,119		—		—		34,119
Net income	—	—		—	—		—		—		13,468		13,468
Foreign currency translation adjustment, net of tax	—	—		—	—		—		(10,236)		—		(10,236)
Balance, March 31, 2023	34,575	$	69	(6,717)	$	(68,605)	$	321,548	$	(9,156)	$	643,402	$	887,258
See accompanying notes to these condensed consolidated financial statements.

4

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Unaudited, in thousands)

	Common Shares			Treasury Shares			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Shareholders' Equity
	Shares	Amount		Shares	Amount
Balance, December 31, 2023	35,205	$	70	(7,154)	$	(79,343)	$	342,636	$	(13,937)	$	645,132	$	894,558
Exercise of common stock options and release of restricted stock units	918	2		—	—		1,053		—		—		1,055
Reissuance of treasury stock upon exercise of common stock options and release of RSUs		—		15	123		—		—		(123)		—
Withholding tax on restricted stock units	(287)	—		—	—		(6,741)		—		—		(6,741)
Issuance of shares under ESPP	—	—		—	—		—		—		—		—
Share-based compensation	—	—		—	—		8,465		—		—		8,465
Net income	—	—		—	—		—		—		(11,212)		(11,212)
Foreign currency translation adjustment, net of tax	—	—		—	—		—		2,812		—		2,812
Balance, March 31, 2024	35,836	$	72	(7,139)	$	(79,220)	$	345,413	$	(11,125)	$	633,797	$	888,937
	Common Shares			Treasury Shares			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Shareholders' Equity
	Shares	Amount		Shares	Amount
Balance, June 30, 2023	34,811	$	70	(7,157)	$	(79,365)	$	329,034	$	(8,111)	$	642,291	$	883,919
Exercise of common stock options and release of restricted stock units	1,156	2		—	—		2,225		—		—		2,227
Reissuance of treasury stock upon exercise of common stock options and release of RSUs	—	—		18	145		—		—		(145)		—
Withholding tax on restricted stock units	(308)	—		—	—		(7,343)		—		—		(7,343)
Issuance of shares under ESPP	177	—		—	—		3,423		—		—		3,423
Share-based compensation	—	—		—	—		18,074		—		—		18,074
Net income	—	—		—	—		—		—		(8,349)		(8,349)
Foreign currency translation adjustment, net of tax	—	—		—	—		—		(3,014)		—		(3,014)
Balance, March 31, 2024	35,836	$	72	(7,139)	$	(79,220)	$	345,413	$	(11,125)	$	633,797	$	888,937

See accompanying notes to these condensed consolidated financial statements.

5

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

	Nine Months Ended March 31,
	2024		2023
Cash flows from operating activities
Net income (loss)	$	(8,349)	$	13,468
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	39,849		31,162
Loss (income) from equity investment	4,085		(1,533)
Share-based compensation expense	18,074		34,119
Deferred income taxes, net	(910)		(962)
Loss on disposal of property and equipment	88		387
Changes in operating assets and liabilities
Accounts receivable	9,166		46,247
Inventories	(14,851)		(21,744)
Other current and long-term assets	3,637		(7,824)
Accounts payable	(4,303)		(21,581)
Net payable, equity investee	2,325		(10,595)
Income taxes payable	(895)		2,506
Increase (decrease) in deferred revenue	(409)		14,370
Accrued and other liabilities	(28,916)		(29,366)
Net cash provided by operating activities	18,591		48,654
Cash flows from investing activities
Purchases of property and equipment	(29,759)		(91,261)
Proceeds from sale of property and equipment	357		27
Government grant related to equipment	809		631
Net cash used in investing activities	(28,593)		(90,603)
Cash flows from financing activities
Withholding tax on restricted stock units	(7,343)		(6,152)
Proceeds from exercise of stock options and ESPP	5,650		4,631
Payment for repurchases of common shares	—		(2,665)
Proceeds from borrowings	—		8,632
Repayments of borrowings	(8,586)		(10,260)
Principal payments on finance leases	(644)		(603)
Net cash used in financing activities	(10,923)		(6,417)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(83)		(121)
Net decrease in cash, cash equivalents and restricted cash	(21,008)		(48,487)
Cash, cash equivalents and restricted cash at beginning of period	195,603		314,651
Cash, cash equivalents and restricted cash at end of period	$	174,595	$	266,164
Supplemental disclosures of non-cash investing and financing information:
Property and equipment purchased but not yet paid	$	3,906	$	17,298
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	174,387	$	265,946
Restricted cash	208		218
Total cash, cash equivalents, and restricted cash	$	174,595	$	266,164

See accompanying notes to these condensed consolidated financial statements.

6

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. The Company and Significant Accounting Policies

The Company

Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”, “AOS”, “we” or “us”) design, develop and supply a broad range of power semiconductors. The Company's portfolio of products targets high-volume applications, including personal and portable computers, graphic cards, flat panel TVs, home appliances, smart phones, battery packs, quick chargers, home appliances, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment. The Company conducts its operations primarily in the United States of America (“USA”), Hong Kong, China, and South Korea.

Basis of Preparation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission Regulation S-X, as amended. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included in the interim periods. Operating results for the nine months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2024 or any other interim period. The consolidated balance sheet at June 30, 2023 is derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023.

Joint Venture

On March 29, 2016, the Company entered into a joint venture contract (the “JV Agreement”) with two investment funds owned by the Municipality of Chongqing (the “Chongqing Funds”), pursuant to which the Company and the Chongqing Funds formed a joint venture, (the “JV Company”), for the purpose of constructing and operating a power semiconductor packaging, testing and 12-inch wafer fabrication facility in the Liangjiang New Area of Chongqing, China (the “JV Transaction”). Prior to December 1, 2021, the JV Company was accounted for under the provisions of the consolidation guidance since the Company had controlling financial interest. As of December 2, 2021, the Company ceased having control over the JV Company. Therefore, the Company deconsolidated the JV Company as of that date. Subsequently, the Company has accounted for its investment in the JV Company using the equity method of accounting. As of June 30, 2023, the percentage of outstanding JV equity interest beneficially owned by the Company was reduced to 42.2%. In February 2024, the JV Company repurchased certain shares that were previously issued to employees under the employee equity incentive plan for $5.4 million, which

increased the Company’s percentage of equity ownership in the JV Company by 0.54%. As of March 31, 2024, the percentage of outstanding JV equity interest beneficially owned by the Company was 42.8%.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. To the extent there are material differences between these estimates and actual results, the Company's consolidated financial statements will be affected. On an ongoing basis, the Company evaluates the estimates, judgments and assumptions including those related to stock rotation returns, price adjustments, allowance for doubtful accounts, inventory reserves, warranty accrual, income taxes, leases, share-based compensation, recoverability of and useful lives for property, plant and equipment and intangible assets.

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities and long-term operating lease liabilities on the Company's

7

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and long-term finance leases liabilities on the consolidated balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company determined its incremental borrowing rate based on the information available at the lease commencement date. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Operating lease expense is generally recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the operating lease ROU asset and lease liability calculation. The Company does not record leases on the consolidated balance sheet with a term of one year or less. The Company elected to combine its lease and non-lease components as a single lease component for all asset classes.

Revenue recognition

The Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, a performance obligation is satisfied. The Company recognizes product revenue at a point in time when product is shipped to the customer, as determined by the agreed upon shipping terms, net of estimated stock rotation returns and price adjustments that it expects to provide to certain distributors. The Company presents revenue net of sales taxes and any similar assessments. Our standard payment terms range from 30 to 60 days.

The Company sells its products primarily to distributors, who in turn sell the products globally to various end customers. The Company allows stock rotation returns from certain distributors. Stock rotation returns are governed by contract and are limited to a specified percentage of the monetary value of products purchased by distributors during a specified period. The Company records an allowance for stock rotation returns based on historical returns, current expectations, and individual distributor agreements. The Company also provides special pricing to certain distributors, primarily based on volume, to encourage resale of the Company's products. Allowance for price adjustments is recorded against accounts receivable and the provision for stock rotation rights is included in accrued liabilities on the consolidated balance sheets.

The Company's performance obligations relate to contracts with a duration of less than one year. The Company elected to apply the practical expedient provided in ASC 606, “Revenue from Contracts with Customers”. Therefore, the Company is not required to disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period.

The Company recognizes the incremental direct costs of obtaining a contract, which consist of sales commissions, when control over the products they relate to transfers to the customer. Applying the practical expedient, the Company recognizes commissions as expense when incurred, as the amortization period of the commission asset the Company would have otherwise recognized is less than one year.

Packaging and testing services revenue is recognized at a point in time upon shipment of serviced products to the customer.

License and Development Revenue Recognition

In February 2023, the Company entered into a license agreement with a customer, pursuant to which the Company agreed to license its proprietary Silicon Carbide (SiC) technology to the customer and engineering and development services for 24 months for a total fee of $45.0 million, consisting of fees of $18.0 million, $6.8 million and $9.0 million paid to the Company in March 2023, July 2023 and February 2024, respectively, with the remaining amount to be paid upon the achievement of specified engineering services and product milestones. The license and development fee is determined to be one performance obligation and is recognized over the 24 months during which the Company performs the engineering and development services. The Company uses the input method to measure progress, which method represents a faithful depiction of the transfer of services. During the three and nine months ended March 31, 2024, the Company recorded license and development revenue of $5.1 million and $16.2 million, respectively. During the three and nine months ended March 31, 2023, the Company recorded $3.6 million of license and development revenue. The amount of contract liability is recorded as deferred revenue on the consolidated balance sheets. As of March 31, 2024, the Company had recorded a total of $26.1 million of license and development revenue. In addition, the Company also entered an accompanying supply agreement to provide limited wafer supply to the customer.

8

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Share-based Compensation Expense

The Company maintains an equity-settled, share-based compensation plan to grant restricted share units and stock options. The Company recognizes expense related to share-based compensation awards that are ultimately expected to vest based on estimated fair values on the date of grant. The fair value of restricted share units is based on the fair value of the Company's common share on the date of grant. For restricted stock awards subject to market conditions, the fair value of each restricted stock award is estimated at the date of grant using the Monte-Carlo pricing model. The fair value of stock options is estimated on the date of grant using the Black-Scholes option valuation model. Share-based compensation expense is recognized on the accelerated attribution basis over the requisite service period of the award, which generally equals the vesting period. The Employee Share Purchase Plan (the “ESPP”) is accounted for at fair value on the date of grant using the Black-Scholes option valuation model.

Restricted Cash

The Company maintains restricted cash in connection with cash balances temporarily restricted for regular business operations. These balances have been excluded from the Company’s cash and cash equivalents balance and are classified as restricted cash in the Company’s Condensed Consolidated Balance Sheets. As of March 31, 2024 and June 30, 2023, the amount of restricted cash was $0.2 million and $0.4 million, respectively.

Equity method investment

The Company uses the equity method of accounting when it has the ability to exercise significant influence, but not control, as determined in accordance with generally accepted accounting principles, over the operating and financial policies of the investee. Effective December 1, 2021, the Company reduced its equity interest in the JV Company and no longer controls the JV Company. As a result, beginning December 2, 2021, the Company records its investment under the equity method of accounting. Since the Company is unable to obtain accurate financial information from the JV Company in a timely manner, the Company records its share of earnings or losses of such affiliate on a one quarter lag. The Company discloses and recognizes intervening events at the JV Company in the lag period that could materially affect its consolidated financial statements, if applicable.

The Company records its interest in the net earnings of the equity method investee, along with adjustments for unrealized profits or losses on intra-entity transactions and amortization of basis differences, within earnings or loss from equity interests in the Consolidated Statements of Income (loss). Profits or losses related to intra-entity sales with the equity method investee are eliminated until realized by the investor and investee. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are generally amortized over the lives of the related assets that gave rise to them. Equity method goodwill is not amortized or tested for impairment; instead the equity method investment is tested for impairment. The Company reviews for impairment whenever factors indicate that the carrying amount of the investment might not be recoverable. In such a case, the decrease in value is recognized in the period the impairment occurs in the Condensed Consolidated Statements of Income (loss).

Valuation of inventories

The Company carries inventories at the lower of cost (determined on a first-in, first-out basis) or net realizable value. Cost primarily consists of semiconductor wafers and raw materials, labor, depreciation expenses and other manufacturing expenses and overhead, and packaging and testing fees paid to third parties if subcontractors are used. Valuation of inventories is based on its periodic review of inventory quantities on hand as compared with its sales forecasts, historical usage, aging of inventories, production yield levels and current product selling prices. If actual market conditions are less favorable than those forecasted by the Company, additional future inventory write-downs may be required that could adversely affect its operating results. Adjustments to inventory, once established are not reversed until the related inventory has been sold or scrapped. If actual market conditions are more favorable than expected and the products that have previously been written down are sold, our gross margin would be favorably impacted.

Fair Value of Financial Instruments

The fair value of cash equivalents is categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short-term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts

9

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

receivable and accounts payable approximate their carrying values due to their short-term maturities. The carrying value of the Company's debt is considered a reasonable estimate of fair value which is estimated by considering the current rates available to the Company for debt of the same remaining maturities, structure, credit risk and terms of the debts.

Government Grants

The Company occasionally receives government grants that provide financial assistance for certain eligible expenditures in China. These grants include reimbursements on interest expense on bank borrowings, payroll tax credits, credit for property, plant and equipment in a particular geographical location, employment credits, as well as business expansion credits. Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attaching to it, and that the grant will be received. The Company records such grants either as a reduction of the related expense, a reduction of the cost of the related asset, or as other income depending upon the nature of the grant. As a result of such grants, during the three and nine months ended March 31, 2024, the Company reduced property, plant and equipment by $0.4 million and $0.8 million, respectively. During the three and nine months ended March 31, 2023, the Company reduced property, plant and equipment by nil and $0.6 million, and operating expenses by $0.0 million and $0.1 million, respectively.

Accounting for income taxes

Income tax expense or benefit is based on income or loss before income taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts.

The Company is subject to income taxes in a number of jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company establishes accruals for certain tax contingencies based on estimates of whether additional taxes may be due. While the final tax outcome of these matters may differ from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

The Company is subject to income tax expense or benefit based upon pre-tax income or loss reported in the consolidated statements of income (loss) and the provisions of currently enacted tax laws. The parent company is incorporated under the laws of Bermuda and is subject to Bermuda law with respect to taxation. Under current Bermuda law, the Company is not subject to any income or capital gains taxes in Bermuda. As we have previously disclosed, the Government of Bermuda announced in December 2023 that it enacted the Corporate Income Tax Act 2023, potentially imposing a 15% corporate income tax (CIT) on Bermuda companies that are within the scope of the CIT, that will be effective for tax years beginning on or after January 1, 2025. In particular, the CIT applies to multinational companies with annual revenue of 750 million euros or more in the consolidated financial statements of the ultimate parent entity for at least two of the four fiscal years immediately preceding the fiscal year when the CIT may apply.

The Company is not in a position to determine whether the annual revenues may meet and/or cross the 750 million Euro threshold for at least two of the four fiscal years immediately preceding the fiscal year when CIT may apply. The Company continues to monitor and assess if and when it may be within the scope of the CIT. If we become subject to the Bermuda CIT, we may be subject to additional income taxes, which may adversely affect our financial position, results of operations and our overall business.

Significant management judgment is also required in determining whether deferred tax assets will be realized in full or in part. When it is more likely than not that all or some portion of specific deferred tax assets such as net operating losses or research and development tax credit carryforwards will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that cannot be realized. The Company considers all available positive and negative evidence on a jurisdiction-by-jurisdiction basis when assessing whether it is more likely than not that deferred tax assets are recoverable. The Company considers evidence such as our past operating results, the existence of cumulative losses in recent years and our forecast of future taxable income.

The Financial Accounting Standards Board (FASB), issued guidance which clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the

10

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely to be realized upon ultimate settlement. Although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model, the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management. If the ultimate resolution of tax uncertainties is different from what is currently estimated, a material impact on income tax expense could result.

The Company's provision for income taxes is subject to volatility and could be adversely impacted by changes in earnings or tax laws and regulations in various jurisdictions. The Company is subject to the continuous examination of our income tax returns by the Internal Revenue Service and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of changes to reserves, as well as the related net interest and penalties.

Long-lived Assets

The Company reviews all long-lived assets whenever events or changes in circumstance indicate that these assets may not be recoverable. When evaluating long-lived assets, if the Company concludes that the estimated undiscounted cash flows attributable to the assets are less than their carrying value, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values, which could adversely affect its results of operations.

Comprehensive Income

Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income consists of cumulative foreign currency translation adjustments. Total comprehensive income is presented in the Condensed Consolidated Statements of Comprehensive Income.

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

None

Recently Issued Accounting Standards not yet adopted

In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures”, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU also expands disclosure requirements to enable users of financial statements to better understand the entity’s measurement and assessment of segment performance and resource allocation. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of the ASU on its disclosures within the Consolidated Financial Statements.

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures”, which enhances the transparency, effectiveness and comparability of income tax disclosures by requiring consistent categories and greater disaggregation of information related to income tax rate reconciliations and the jurisdictions in which income taxes are paid. This guidance is effective for annual periods beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impact of the ASU on its income tax disclosures within the Consolidated Financial Statements.

11

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2. Equity Method Investment in Equity Investee

On December 1, 2021 (the “Effective Date”), Alpha & Omega Semiconductor (Shanghai) Ltd. (“AOS SH”) and Agape Package Manufacturing (Shanghai) Limited (“APM SH” and, together with AOS SH, the “Sellers”), each a wholly-owned subsidiary of the Company, entered into a share transfer agreement ("STA") with a third-party investor to sell a portion of the Company's equity interest in the JV Company which consists of a power semiconductor packaging, testing and 12-inch wafer fabrication facility in Chongqing, China (the “Transaction”). The Transaction closed on December 2, 2021 (the “Closing Date”), which reduced the Company’s equity interest in the JV Company from 50.9% to 48.8%. Also, the Company’s right to designate directors on the board of JV Company was reduced to three (3) out of seven (7) directors, from four (4) directors prior to the Transaction. As a result of the Transaction and other factors, the Company no longer has a controlling financial interest in the JV Company and has determined that the JV Company was deconsolidated from the Company’s Consolidated Financial Statements effective as of the Closing Date.

On December 24, 2021, the Company entered into a share transfer agreement with another third-party investor, pursuant to which the Company sold to this investor 1.1% of outstanding equity interest held by the Company in the JV Company. In addition, the JV Company adopted an employee equity incentive plan and issued an equity interest equivalent to 3.99% of the JV Company in exchange to cash. As a result of these two transactions, the Company owned 45.8% of the equity interest in the JV Company as of December 31, 2021.

On January 26, 2022, the JV Company completed a financing transaction pursuant to a corporate investment agreement (the “Investment Agreement”) between the JV Company and certain third-party investors (the “New Investors”). Under the Investment Agreement, the New Investors purchased newly issued equity interest of the JV Company, representing approximately 7.82% of post-transaction outstanding equity interests of the JV Company, for a total purchase price of RMB 509 million (or approximately USD 80 million based on the currency exchange rate as of January 26, 2022) (the “Investment”). Following the closing of the Investment and as of June 30, 2022, the percentage of outstanding JV equity interest beneficially owned by the Company was reduced to 42.2%.

In February 2024, the JV Company repurchased certain shares that were previously issued to employees under the employee equity incentive plan for $5.4 million, which increased the Company’s percentage of equity ownership in the JV Company by 0.54%. As of March 31, 2024, the percentage of outstanding JV equity interest beneficially owned by the Company was 42.8%.

The Company accounts for its investment in the JV Company as an equity method investment and reports its equity in earnings or loss of the JV Company on a three-month lag due to an inability to timely obtain financial information of the JV Company. During the three and nine months ended March 31, 2024, the Company recorded a $0.7 million loss and $4.1 million loss of its equity share of the JV Company, respectively, using lag reporting. During the three and nine months ended March 31, 2023, the Company recorded $1.5 million in loss and a $1.5 million income of its equity in income of the JV Company, respectively, using lag reporting.

12

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3. Related Party Transactions

As of March 31, 2024, the Company owned a 42.8% equity interest in the JV Company, which, by definition, is a related party to the Company. The JV Company supplies 12-inch wafers and provides assembly and testing services to AOS. AOS previously sold 8-inch wafers to the JV Company for further assembly and testing services until January 1, 2023, when it changed to consign the 8-inch wafers to the JV Company. Due to the right of offset of receivables and payables with the JV Company, as of March 31, 2024, AOS recorded the net amount of $14.3 million as payable related to equity investee, net, in the Condensed Consolidated Balance Sheet. The purchases by AOS for the three and nine months ended March 31, 2024 were $22.4 million and $80.8 million, respectively, and the sales by AOS for the three and nine months ended March 31, 2024 were $2.6 million and $6.3 million, respectively. The purchases by AOS for the three and nine months ended March 31, 2023 were $20.2 million and $106.1 million, respectively, and the sales by AOS for the three and nine months ended March 31, 2023 were $4.0 million and $34.4 million, respectively.

13

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

4. Net Income (Loss) Per Common Share

The following table presents the calculation of basic and diluted net income (loss) per share attributable to common shareholders:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(in thousands, except per share data)
Numerator:
Net income (loss)	$	(11,212)	$	(18,907)	$	(8,349)	$	13,468
Denominator:
Basic:
Weighted average number of common shares used to compute basic net income (loss) per share	28,433		27,710		28,022		27,537
Diluted:
Weighted average number of common shares used to compute basic net income (loss) per share	28,433		27,710		28,022		27,537
Effect of potentially dilutive securities:
Stock options, RSUs and ESPP shares	—		—		—		2,039
Weighted average number of common shares used to compute diluted net income (loss) per share	28,433		27,710		28,022		29,576
Net income (loss) per share:
Basic	$	(0.39)	$	(0.68)	$	(0.30)	$	0.49
Diluted	$	(0.39)	$	(0.68)	$	(0.30)	$	0.46

The following potential dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive:

	Three Months Ended March 31,		Nine Months Ended March 31,
	2024	2023	2024	2023
	(in thousands)		(in thousands)
Employee stock options and RSUs	1,688	3,152	2,242	281
ESPP	1,008	767	1,046	279
Total potential dilutive securities	2,696	3,919	3,288	560

14

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

5. Concentration of Credit Risk and Significant Customers

The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application and review of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers.

Credit sales, which are mainly on credit terms of 30 to 60 days, are only made to customers who meet the Company's credit requirements, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its trade accounts receivable to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant bad debt write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, where available.

Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts:

	Three Months Ended March 31,				Nine Months Ended March 31,
Percentage of revenue	2024		2023		2024		2023
Customer A	25.0	%	21.0	%	26.1	%	21.7	%
Customer B	46.4	%	28.7	%	44.8	%	35.5	%
Customer D	*		17.9	%	*		14.1	%

	March 31, 2024		June 30, 2023
Percentage of accounts receivable
Customer A	*		15.3	%
Customer B	*		17.6	%
Customer C	23.9	%	13.3	%
Customer D	30.6	%	30.9	%

* Less than 10%

15

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

6. Balance Sheet Components

Accounts receivable, net:

	March 31, 2024		June 30, 2023
	(in thousands)
Accounts receivable	$	62,565	$	62,426
Less: Allowance for price adjustments	(49,281)		(39,976)
Less: Allowance for doubtful accounts	(30)		(30)
Accounts receivable, net	$	13,254	$	22,420

Inventories:

	March 31, 2024		June 30, 2023
	(in thousands)
Raw materials	$	83,535	$	86,620
Work-in-process	88,808		69,426
Finished goods	25,755		27,201
	$	198,098	$	183,247

Other current assets:

	March 31, 2024		June 30, 2023
	(in thousands)
Value-added tax receivable	$	280	$	275
Other prepaid expenses	2,911		3,863
Prepaid insurance	693		4,162
Prepaid maintenance	1,496		1,697
Prepayment to supplier	115		10,689
Prepaid income tax	2,326		707
Interest receivable	364		135
Other receivables	419		1,138
	$	8,604	$	22,666

16

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Property, plant and equipment, net:

	March 31, 2024		June 30, 2023
	(in thousands)
Land	$	4,877	$	4,877
Building and building improvements	26,970		26,478
Manufacturing machinery and equipment	415,598		398,757
Equipment and tooling	35,553		32,737
Computer equipment and software	51,870		49,890
Office furniture and equipment	3,264		3,087
Leasehold improvements	41,521		38,787
	579,653		554,613
Less: accumulated depreciation and amortization	(308,439)		(272,503)
	271,214		282,110
Equipment and construction in progress	68,301		75,721
Property, plant and equipment, net	$	339,515	$	357,831

Intangible assets, net:

	March 31, 2024		June 30, 2023
	(in thousands)
Patents and technology rights	$	18,037	$	18,037
Trade name	268		268
Customer relationships	1,150		1,150
	19,455		19,455
Less: accumulated amortization	(15,396)		(12,959)
	4,059		6,496
Goodwill	269		269
Intangible assets, net	$	4,328	$	6,765

Estimated future minimum amortization expense of intangible assets is as follows (in thousands):

Year ending June 30,
2024 (Remaining)	$	812
2025	3,247
	$	4,059

17

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Other long-term assets:

	March 31, 2024		June 30, 2023
	(in thousands)
Prepayments for property and equipment	$	3,229	$	1,717
Investment in a privately held company	100		100
Customs deposit	651		931
Deposit with supplier	23,342		12,290
Other long-term deposits	37		37
Office leases deposits	1,347		1,274
Other	2,785		3,354
	$	31,491	$	19,703

Accrued liabilities:

	March 31, 2024		June 30, 2023
	(in thousands)
Accrued compensation and benefits	$	15,407	$	15,627
Warranty accrual	2,282		1,674
Stock rotation accrual	4,678		5,588
Accrued professional fees	2,188		2,458
Accrued inventory	565		1,597
Accrued facilities related expenses	2,117		2,327
Accrued property, plant and equipment	5,756		6,402
Other accrued expenses	4,138		4,401
Customer deposits	33,085		38,082
ESPP payable	3,371		1,377
	$	73,587	$	79,533

Short-term customer deposits are payments received from customers for securing future product shipments. As of March 31, 2024, $10.0 million were from Customer A, $8.9 million were from Customer B, and $14.2 million were from other customers. As of June 30, 2023, $13.5 million were from Customer A, $9.2 million were from Customer B, and $15.4 million were from other customers.

The activities in the warranty accrual, included in accrued liabilities, are as follows:

	Nine Months Ended March 31,
	2024		2023
	(in thousands)
Beginning balance	$	1,674	$	2,650
Additions	773		2,915
Utilization	(165)		(1,750)
Ending balance	$	2,282	$	3,815

18

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The activities in the stock rotation accrual, included in accrued liabilities, are as follows:

	Nine Months Ended March 31,
	2024		2023
	(in thousands)
Beginning balance	$	5,588	$	4,798
Additions	7,849		9,187
Utilization	(8,759)		(9,904)
Ending balance	$	4,678	$	4,081

Other long-term liabilities:

	March 31, 2024		June 30, 2023
	(in thousands)
Customer deposits	$	22,361	$	46,393
Computer software liabilities	1,223		4,644
Other long-term liabilities	$	23,584	$	51,037

Customer deposits are payments received from customers for securing future product shipments. As of March 31, 2024, $12.0 million were from Customer A, $3.0 million were from Customer B, and $7.4 million were from other customers. As of June 30, 2023, $21.0 million were from Customer A, $11.7 million were from Customer B, and $13.7 million were from other customers.

19

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

7. Bank Borrowings

Short-term borrowings

In March 2024, one of the Company's subsidiaries in China entered into a line of credit facility with Bank of Communications Limited in China. The purpose of the credit facility is to provide working capital borrowings. The Company could borrow up to approximately RMB 140 million or $19.4 million based on currency exchange rate between RMB and U.S. Dollar on March 31, 2024 with a maturity date of March 15, 2025. As of March 31, 2024, there was no outstanding balance for this loan.

In December 2023, one of the Company's subsidiaries in China entered into a line of credit facility with Industrial and Commercial Bank of China. The purpose of the credit facility was to provide working capital borrowings. The Company could borrow up to approximately RMB 72.0 million, or $10.2 million based on currency exchange rate between RMB and U.S. Dollar on December 31, 2023, with a maturity date of December 31, 2024. As of March 31, 2024, there was no outstanding balance for this loan.

In September 2023, one of the Company's subsidiaries in China entered into a line of credit facility with China Construction Bank. The purpose of the credit facility is to provide working capital borrowings. The Company could borrow up to approximately RMB 50 million or $6.8 million based on currency exchange rate between RMB and U.S. Dollar on September 30, 2023 with a maturity date of September 8, 2025. As of March 31, 2024, there was no outstanding balance for this loan.

Accounts Receivable Factoring Agreement

On August 9, 2019, one of the Company's wholly-owned subsidiaries (the “Borrower”) entered into a factoring agreement with the Hongkong and Shanghai Banking Corporation Limited (“HSBC”), whereby the Borrower assigns certain of its accounts receivable with recourse. This factoring agreement allows the Borrower to borrow up to 70% of the net amount of its eligible accounts receivable of the Borrower with a maximum amount of $30.0 million. The interest rate is based on the Secured Overnight Financing Rate ("SOFR)", plus 2.01% per annum. The Company is the guarantor for this agreement. The Company is accounting for this transaction as a secured borrowing. In addition, any cash held in the restricted bank account controlled by HSBC has a legal right of offset against the borrowing. This agreement, with certain financial covenants required, has no expiration date. On August 11, 2021, the Borrower signed an agreement with HSBC to reduce the borrowing maximum amount to $8.0 million with certain financial covenants required. Other terms remain the same. As of March 31, 2024, the Borrower was in compliance with these covenants. As of March 31, 2024, there was no outstanding balance and the Company had unused credit of approximately $8.0 million.

Debt financing

In September 2021, Jireh Semiconductor Incorporated (“Jireh”), one of the wholly-owned subsidiaries, entered into a financing arrangement agreement with a company (“Lender”) for the lease and purchase of a machinery equipment manufactured by a supplier. This agreement has a 5 years term, after which Jireh has the option to purchase the equipment for $1. The implied interest rate was 4.75% per annum which was adjustable based on every five basis point increase in 60-month U.S. Treasury Notes, until the final installation and acceptance of the equipment. The total purchase price of this equipment was euro 12.0 million. In April 2021, Jireh made a down payment of euro 6.0 million, representing 50% of the total purchase price of the equipment, to the supplier. In June 2022, the equipment was delivered to Jireh after Lender paid 40% of the total purchase price, for euro 4.8 million, to the supplier on behalf of Jireh. In September 2022, Lender paid the remaining 10% payment for the total purchase price and reimbursed Jireh for the 50% down payment, after the installation and configuration of the equipment. The title of the equipment was transferred to Lender following such payment. The agreement was amended with fixed implied interest rate of 7.51% and monthly payment of principal and interest effective in October 2022. Other terms remain the same. In addition, Jireh purchased hardware for the machine under this financing arrangement. The purchase price of this hardware was $0.2 million. The financing arrangement is secured by this equipment and other equipment which had the net book value of $14.0 million as of March 31, 2024. As of March 31, 2024, the outstanding balance of this debt financing was $9.8 million.

Long-term bank borrowings

On August 18, 2021, Jireh entered into a term loan agreement with a financial institution (the "Bank") in an amount up to $45.0 million for the purpose of expanding and upgrading the Company’s fabrication facility located in Oregon. The obligation under the loan agreement is secured by substantially all assets of Jireh and guaranteed by the Company. The agreement has a

20

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

5.5 year term and matures on February 16, 2027. Jireh is required to make consecutive quarterly payments of principal and interest. The loan accrues interest based on adjusted SOFR plus the applicable margin based on the outstanding balance of the loan. This agreement contains customary restrictive covenants and includes certain financial covenants that the Company is required to maintain. Jireh drew down $45.0 million on February 16, 2022 with the first payment of principal beginning in October 2022. As of March 31, 2024, Jireh was in compliance with these covenants and the outstanding balance of this loan was $31.5 million.

Maturities of short-term debt and long-term debt were as follows (in thousands):

Year ending June 30,
2024 (Remaining)					$	2,885
2025					11,664
2026					11,871
2027					14,344
2028					536
Total principal					41,300
Less: debt issuance costs					(63)
Total principal, less debt issuance costs					$	41,237
	Short-term Debt		Long-term Debt		Total
Principal amount	$	11,614	$	29,686	$	41,300
Less: debt issuance costs	(30)		(33)		(63)
Total debt, less debt issuance costs	$	11,584	$	29,653	$	41,237

8. Leases

The Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities and operating lease liabilities - long-term on the Company's Condensed Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the Condensed Consolidated Balance Sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the $5.1 million of a machinery lease financing with a vendor. In September 2022, the lease was amended to make a monthly payment of principal and interest as a fixed amount effective in October 2022. Other terms remain the same. The amendment was accounted for as a debt modification and no gain or loss was recognized. The Company does not record leases on the Condensed Consolidated Balance Sheets with a term of one year or less.

The components of the Company’s operating and finance lease expenses are as follows for the periods presented (in thousands):

21

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
Operating leases:
Fixed rent expense	$	1,356	$	1,385	$	4,399	$	4,298
Variable rent expense	307		279		819		757
Finance lease:
Amortization of equipment	128		128		385		393
Interest	67		83		214		227
Short-term leases
Short-term lease expenses	41		133		128		300
Total lease expenses	$	1,899	$	2,008	$	5,945	$	5,975

Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate):

	March 31, 2024			June 30, 2023
Operating Leases:
ROU assets associated with operating leases	$	24,421		$	24,349
Finance Lease:
Property, plant and equipment, gross	$	5,133		$	5,133
Accumulated depreciation	(1,042)			(657)
Property, plant and equipment, net	$	4,091		$	4,476
Weighted average remaining lease term (in years)
Operating leases	5.67			6.57
Finance lease	3.50			4.25
Weighted average discount rate
Operating leases	4.91		%	4.67		%
Finance lease	7.51		%	7.51		%

Supplemental cash flow information related to the Company’s operating and finance leases is as follows (in thousands):

	Nine Months Ended March 31,
	2024		2023
Cash paid from amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,804	$	4,418
Operating cash flows from finance lease	$	214	$	227
Financing cash flows from finance lease	$	644	$	603
Non-cash investing and financing information:
Operating lease right-of-use assets obtained in exchange for lease obligations	$	3,954	$	2,859

Future minimum lease payments are as follows as of March 31, 2024 (in thousands):

22

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Year ending June 30,	Operating Leases		Finance Leases
The remainder of fiscal 2024	$	1,532	$	286
2025	5,954		1,144
2026	5,109		1,144
2027	4,188		1,145
2028	3,691		191
Thereafter	8,322		—
Total minimum lease payments	28,796		3,910
Less amount representing interest	(3,788)		(471)
Total lease liabilities	$	25,008	$	3,439

23

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

9. Shareholders' Equity and Share-based Compensation

Share Repurchase

In September 2017, the Board of Directors approved a repurchase program (the “Repurchase Program”) that allowed the Company to repurchase its common shares from the open market pursuant to a pre-established Rule 10b5-1 trading plan or through privately negotiated transactions up to an aggregate of $30.0 million. The amount and timing of any repurchases under the Repurchase Program depend on a number of factors, including but not limited to, the trading price, volume and availability of the Company’s common shares. Shares repurchased under this program are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction of shareholders' equity. From time to time, treasury shares may be reissued as part of the Company’s share-based compensation programs. Gains on re-issuance of treasury stock are credited to additional paid-in capital; losses are charged to additional paid-in capital to offset the net gains, if any, from previous sales or re-issuance of treasury stock. Any remaining balance of the losses is charged to retained earnings. As of March 31, 2024, no remaining amount was available under the share repurchase program.

Time-based Restricted Stock Units (“TRSU”)

The following table summarizes the Company's TRSU activities for the nine months ended March 31, 2024:

	Number of Restricted Stock Units	Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Nonvested at June 30, 2023	1,385,065	$	32.48	1.73	$	45,430,132
Granted	641,493	$	22.96
Vested	(475,023)	$	30.31
Forfeited	(32,876)	$	32.35
Nonvested at March 31, 2024	1,518,659	$	29.14	1.85	$	33,471,244

Market-based Restricted Stock Units (“MSU”)

In December 2021, the Company granted 1.0 million market-based restricted stock units ("MSUs") to certain personnel. The number of shares to be earned at the end of performance period was determined based on the Company’s achievement of specified stock prices and revenue thresholds during the performance period from January 1, 2022 to December 31, 2024 as well as the recipients remaining in continuous service with the Company through such period. The MSU vests in four equal annual installments after the end of performance period. The Company estimated the grant date fair values of its MSUs using a Monte-Carlo simulation model. On September 19, 2023, the Compensation Committee of the Board approved a modification of the terms of MSUs to extend the performance period through December 31, 2025, changed the commencement date for the four-year time-based service period January 1, 2025, and reduced the achievement of specified stock prices and revenue thresholds. The fair value of these MSUs was revalued to reflect the change using a Monte-Carlo simulation model with the following assumptions: risk-free interest rate of 4.94%, expected term of 2.28 years, expected volatility of 61.38% and dividend yield of 0%. The Company recognizes the total compensation cost of the modified MSUs beginning on the modification date over the remaining requisite service periods. The Company recorded $1.1 million of expenses for the three months ended March 31, 2024, and a negative $4.0 million of expenses for the nine months ended March 31, 2024 due to a $6.4 million of reversal of the prior recognized expenses. The Company recorded $2.1 million and $6.2 million of expenses for the three and nine months ended March 31, 2023, respectively.

During the quarter ended September 30, 2018, the Company granted 1.3 million MSUs to certain personnel. The number of shares to be earned at the end of performance period is determined based on the Company’s achievement of specified stock prices and revenue thresholds during the performance period from January 1, 2019 to December 31, 2021 as well as the recipients remaining in continuous service with the Company through such period. The MSUs vest in four equal annual installments after the end of the performance period. The Company estimated the grant date fair values of its MSUs using a Monte-Carlo simulation model. On August 31, 2020, the Compensation Committee of the Board approved a modification of the terms of MSU to (i) extend the performance period through December 31, 2022 and (ii) change the commencement date for the four-year time-based service period to January 1, 2023. The fair value of these MSUs was recalculated to reflect the change as of August 31, 2020 and the unrecognized compensation amount was adjusted to reflect the increase in fair value. The Company recorded $0.2 million and $0.8 million of expenses for MSUs during the three and nine months ended March 31, 2024, respectively, and $0.3 million and $3.6 million of expenses for MSUs during the three and nine months ended March 31, 2023.

24

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table summarizes the Company's MSUs activities for the nine months ended March 31, 2024:

	Number of Performance-based Restricted Stock Units	Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Nonvested at June 30, 2023	2,108,000	$	25.86	2.96	$	69,142,400
Granted	—	$	—
Vested	(275,000)	$	5.17
Forfeited	(10,000)	$	48.44
Nonvested at March 31, 2024	1,823,000	$	28.86	3.12	$	40,178,920

Performance-based Restricted Stock Units (“PRSUs”)

In March each year since year 2017, the Company granted PRSUs to certain personnel. The number of shares to be earned under the PRSUs is determined based on the level of attainment of predetermined financial goals. The PRSUs vest in four equal annual installments from the first anniversary date after the grant date if certain predetermined financial goals were met. The Company recorded approximately $0.8 million and $2.0 million of expense for these PRSUs during the three and nine months ended March 31, 2024, respectively, and $1.4 million and $4.1 million and for the three and nine months ended March 31, 2023, respectively.

The following table summarizes the Company’s PRSUs activities for the nine months ended March 31, 2024:

	Number of Performance-based Restricted Stock Units	Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Nonvested at June 30, 2023	526,714	$	32.19	1.78	$	17,276,219
Granted	209,250	$	21.55
Vested	(123,632)	$	30.50
Forfeited	(258,957)	$	26.41
Nonvested at March 31, 2024	353,375	$	30.71	1.98	$	7,788,385

Stock Options

The Company did not grant any stock options during the nine months ended March 31, 2024 and 2023. The following table summarizes the Company's stock option activities for the nine months ended March 31, 2024:

				Weighted
		Weighted		Average
		Average		Remaining
	Number of	Exercise Price		Contractual	Aggregate
	Shares	Per Share		Term (in years)	Intrinsic Value
Outstanding at June 30, 2023	319,375	$	7.53	0.72	$	8,071,631
Exercised	(299,375)	$	7.44		$	5,406,850
Outstanding at March 31, 2024	20,000	$	8.86	0.30	$	263,600
Options vested and expected to vest	20,000	$	8.86	0.30	$	263,600
Exercisable at March 31, 2024	20,000	$	8.86	0.30	$	263,600

25

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Employee Share Purchase Plan (“ESPP”)

The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows:

	Nine Months Ended March 31,
	2024
Volatility rate	64.0%
Risk-free interest rate	5.2%
Expected term	1.3 years
Dividend yield	0%

Share-based Compensation Expense

The total share-based compensation expense recognized in the Condensed Consolidated Statements of Income for the periods presented was as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(in thousands)				(in thousands)
Cost of goods sold	$	1,424	$	1,723	$	3,140	$	5,259
Research and development	2,163		2,987		4,586		8,808
Selling, general and administrative	4,878		5,722		10,348		20,052
	$	8,465	$	10,432	$	18,074	$	34,119

As of March 31, 2024, total unrecognized compensation cost under the Company's equity plans was $55.0 million, which is expected to be recognized over a weighted-average period of 2.5 years.

10. Income Taxes

The Company recognized income tax expense of approximately $0.6 million and $2.5 million for the three months ended March 31, 2024 and 2023, respectively. The income tax expense of $0.6 million for the three months ended March 31, 2024 included a $0.1 million discrete tax expense. The income tax expense of $2.5 million for the three months ended March 31, 2023 included a $0.03 million discrete tax expense. Excluding the discrete income tax items, the income tax expense for the three months ended March 31, 2024 and 2023 was $0.6 million and $2.5 million, respectively, and the effective tax rate for the three months ended March 31, 2024 and 2023 was (5.3)% and (15.2)%, respectively. The changes in the tax expense and effective tax rate between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current year and the same period of last year as well as from reporting pretax book loss of $10.6 million for the three months ended March 31, 2024 as compared to $16.4 million of pretax book loss for the three months ended March 31, 2023.

The Company recognized income tax expense of approximately $2.6 million and $5.6 million for the nine months ended March 31, 2024 and 2023, respectively. The income tax expense of $2.6 million for the nine months ended March 31, 2024 included a $0.2 million discrete tax expense. The income tax expense of $5.6 million for the nine months ended March 31, 2023 included a $0.1 million discrete tax expense. Excluding the discrete income tax items, income tax expense for the nine months ended March 31, 2024 and 2023 was $2.5 million and $5.4 million, respectively, and the effective tax rate for the nine months ended March 31, 2024 and 2023 was (43.4)% and 28.4%, respectively. The changes in the tax expense and effective tax rate between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current year and the same period of last year as well as from reporting pretax book loss of $5.7 million for the the nine months ended March 31, 2024 as compared to $19.0 million of pretax book income for the nine months ended March 31, 2023.

The Company files its income tax returns in the United States and in various foreign jurisdictions. The tax years 2001 to 2023 remain open to examination by U.S. federal and state tax authorities. The tax years 2017 to 2023 remain open to examination by foreign tax authorities.

26

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The Company's income tax returns are subject to examinations by the Internal Revenue Service and other tax authorities in various jurisdictions. In accordance with the guidance on the accounting for uncertainty in income taxes, the Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of March 31, 2024, the gross amount of unrecognized tax benefits was approximately $9.5 million, of which $6.4 million, if recognized, would reduce the effective income tax rate in future periods. If the Company's estimate of income tax liabilities proves to be less than the ultimate assessment, then a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. The Company does not anticipate any material changes to its uncertain tax positions during the next twelve months.

"U.S. Tax Cuts and Jobs Act", Enacted December 22, 2017

On December 22, 2017, the United States enacted tax reform legislation through the Tax Cuts and Jobs Act (“the Tax Act”), which significantly changes the existing U.S. tax laws, including, but not limited to, (1) a reduction in the corporate tax rate from 35% to 21%, (2) a shift from a worldwide tax system to a territorial system, (3) eliminating the corporate alternative minimum tax (AMT) and changing how existing AMT credits can be realized, (4) bonus depreciation that will allow for full expensing of qualified property, (5) creating a new limitation on deductible interest expense and (6) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017.

The Company is not currently subject to the Base Erosion and Anti-Abuse (BEAT) tax, which is a tax imposed on certain entities who make payments to their non U.S. affiliates, where such payments reduce the U.S. tax base. The BEAT tax is imposed at a rate of 10% on Adjusted Taxable Income, excluding certain payments to foreign related entities. It is an incremental tax over and above the corporate income tax and is recorded as a period cost. It is possible that this tax could be applicable in future periods, which would cause an increase to the effective tax rate and cash taxes.

“The Chip and Science Act of 2022”, Enacted August 2, 2022

In August 2022 the U.S. enacted the Chip and Science Act of 2022 (the Chips Act). The Chips Act provides incentives to semiconductor chip manufacturers in the United States, including providing a 25% manufacturing investment credits for investments in semiconductor manufacturing property placed in service after December 31, 2022, for which construction begins before January 1, 2027. Property investments qualify for the 25% credit if, among other requirements, the property is integral to the operation of an advanced manufacturing facility, defined as having a primary purpose of manufacturing semiconductors or semiconductor manufacturing equipment. Currently, we are evaluating the impact of the Chips Act to us.

“The Inflation Reduction Act”, Enacted August 16, 2022

In August 2022 the United States enacted tax legislation through the Inflation Reduction Act (IRA). The IRA introduces a 15% corporate alternative minimum tax (CAMT) for corporations whose average annual adjusted financial statement income (AFSI) for any consecutive three-tax-year period preceding the applicable tax year exceeds $1 billion. The CAMT is effective for tax years beginning after December 31, 2022. The CAMT is currently not applicable to the Company.

Bermuda Corporate Income Tax for Tax Years Beginning in 2025

The Company is subject to income tax expense or benefit based upon pre-tax income or loss reported in the consolidated statements of income (loss) and the provisions of currently enacted tax laws. The parent company is incorporated under the laws of Bermuda and is subject to Bermuda law with respect to taxation. Under current Bermuda law, the Company is not subject to any income or capital gains taxes in Bermuda. As we have previously disclosed, the Government of Bermuda announced in December 2023 that it enacted the Corporate Income Tax Act 2023, potentially imposing a 15% corporate income tax (CIT) on Bermuda companies that are within the scope of the CIT, that will be effective for tax years beginning on or after January 1, 2025. In particular, the CIT applies to multinational companies with annual revenue of 750 million euros or more in the consolidated financial statements of the ultimate parent entity for at least two of the four fiscal years immediately preceding the fiscal year when the CIT may apply.

The Company is not in a position to determine whether the annual revenues may meet and/or cross the 750 million Euro threshold for at least two of the four fiscal years immediately preceding the fiscal year when CIT may apply. The Company continues to monitor and assess if and when it may be within the scope of the CIT. If we become subject to the Bermuda CIT, we may be subject to additional income taxes, which may adversely affect our financial position, results of operations and our overall business.

27

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

11. Segment and Geographic Information

The Company is organized as, and operates in, one operating segment: the design, development and supply of power semiconductor products for computing, consumer electronics, communication and industrial applications. The chief operating decision-makers are the Executive Chairman and the Chief Executive Officer. The financial information presented to the Company’s Executive Chairman and Chief Executive Officer is on a consolidated basis, accompanied by information about revenue by customer and geographic region, for purposes of evaluating financial performance and allocating resources. The Company has one business segment, and there are no segment managers who are held accountable for operations, operating results and plans for products or components below the consolidated unit level. Accordingly, the Company reports as a single operating segment.

The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. Because the Company’s distributors sell their products to end customers which may have a global presence, revenue by geographical location is not necessarily representative of the geographical distribution of sales to end user markets.

In February 2023, the Company entered into a license agreement with a customer to license the Company’s proprietary SiC technology and to provide 24-month engineering and development services for a total fee of $45 million.

The revenue by geographical location in the following tables is based on the country or region in which the products were shipped to:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(in thousands)				(in thousands)
Hong Kong	$	123,731	$	106,940	$	389,018	$	438,537
China	19,108		14,360		76,270		58,104
South Korea	326		1,083		9,670		7,622
United States	1,728		4,245		4,128		16,701
Other countries	5,167		5,932		16,892		8,832
	$	150,060	$	132,560	$	495,978	$	529,796

The following is a summary of revenue by product type:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(in thousands)				(in thousands)
Power discrete	$	93,815	$	80,962	$	324,093	$	363,117
Power IC	49,990		47,416		153,032		159,708
Packaging and testing services and other	1,204		552		2,694		3,341
License and development services	5,051		3,630		16,159		3,630
	$	150,060	$	132,560	$	495,978	$	529,796

28

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Long-lived assets, net consisting of property, plant and equipment and operating lease right-of-use assets, net by geographical area are as follows:

	March 31, 2024		June 30, 2023
	(in thousands)
China	$	109,296	$	114,822
United States	251,049		263,083
Other countries	3,591		4,275
	$	363,936	$	382,180

29

ALPHA AND OMEGA SEMICONDUCTOR LIMITED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

12. Commitments and Contingencies

Purchase Commitments

As of March 31, 2024 and June 30, 2023, the Company had approximately $101.2 million and $127.5 million, respectively, of outstanding purchase commitments primarily for purchases of semiconductor raw materials, wafers, spare parts, packaging and testing services and others.

As of March 31, 2024 and June 30, 2023, the Company had approximately $10.5 million and $9.7 million, respectively, of capital commitments for the purchase of property and equipment.

Other Commitments

        See Note 7 and Note 8 of the Notes to the Condensed Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for descriptions of commitments including bank borrowings and leases.

Contingencies and Indemnities

The Company has in the past, and may from time to time in the future, become involved in legal proceedings arising from the normal course of business activities.  The semiconductor industry is characterized by frequent claims and litigation, including claims regarding patent and other intellectual property rights as well as improper hiring practices. Irrespective of the validity of such claims, the Company could incur significant costs in the defense of such claims and suffer adverse effects on its operations.

In December 2019, the U.S. Department of Justice (“DOJ”) commenced an investigation into the Company's compliance with export control regulations relating to its business transactions with Huawei and its affiliates (“Huawei”), which were added to the “Entity List” maintained by the Department of Commerce (“DOC”) on May 16, 2019.  The Company cooperated fully with federal authorities in the investigation, including responding to requests for documents, information and interviews from DOJ in connection with the investigation. In connection with this investigation, DOC requested the Company to suspend shipments of its products to Huawei, and the Company complied with such request. The Company has not shipped any product to Huawei after December 31, 2019.  On January 19, 2024, DOJ informed the Company that it has closed such investigation without any charges. The Company continues to cooperate with the DOC in the ongoing civil investigation. DOC has not informed the Company of any specific timeline or schedule under which DOC will complete its review.

The Company is a party to a variety of agreements contracted with various third parties. Pursuant to these agreements, the Company may be obligated to indemnify another party to such an agreement with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold, certain intellectual property rights, specified environmental matters and certain income taxes. In these circumstances, payment by the Company is customarily conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party's claim. Further, the Company's obligations under these agreements may be limited in time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. The Company has not historically paid or recorded any material indemnifications, and no accrual was made at March 31, 2024 and June 30, 2023.

The Company has agreed to indemnify its directors and certain employees as permitted by law and pursuant to its Bye-laws, and has entered into indemnification agreements with its directors and executive officers. The Company has not recorded a liability associated with these indemnification arrangements, as it historically has not incurred any material costs associated with such indemnification obligations. Costs associated with such indemnification obligations may be mitigated by insurance coverage that the Company maintains. However, such insurance may not cover any, or may cover only a portion of, the amounts the Company may be required to pay. In addition, the Company may not be able to maintain such insurance coverage at a reasonable cost.

30

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Except for the historical information contained herein, the matters addressed in this Item 2 constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward looking statements include, but are not limited to, statements regarding future financial performance of the Company; the expected ramp up timeline of the 12-inch fab at the JV Company; and other statements and information set forth under the heading “Factors Affecting Our Performance”. Such forward-looking statements are subject to a variety of risks and uncertainties, including those discussed below under the heading “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q, that could cause actual results to differ materially from those anticipated by the Company’s management. The Private Securities Litigation Reform Act of 1995 (the “Act”) provides certain “safe harbor” provisions for forward-looking statements. All forward-looking statements made in this Quarterly Report on Form 10-Q are made pursuant to the Act. The Company undertakes no obligation to publicly release the results of any revisions to its forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected events. Unless the context otherwise requires, the words “AOS,” the “Company,” “we,” “us” and “our” refer to Alpha and Omega Semiconductor Limited and its subsidiaries.

Management’s discussion should be read in conjunction with management’s discussion included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023, filed with the Securities and Exchange Commission on August 29, 2023.

Overview

We are a designer, developer and global supplier of a broad portfolio of power semiconductors. Our portfolio of power semiconductors includes approximately 2,600 products, and has grown significantly with the introduction of over 60 new products in the fiscal year ended June 30, 2023, and over 130 and 160 new products in the fiscal years ended June 30, 2022 and 2021, respectively. During the nine months ended March 31, 2024, we introduced an additional 80 new products. Our teams of scientists and engineers have developed extensive intellectual property and technical knowledge that encompass major aspects of power semiconductors, which we believe enables us to introduce and develop innovative products to address the increasingly complex power requirements of advanced electronics. We have an extensive patent portfolio that consists of 931 patents and 43 patent applications in the United States as of March 31, 2024. We also have a total of 1,009 foreign patents, which were based primarily on our research and development efforts through March 31, 2024. We differentiate ourselves by integrating our expertise in technology, design and advanced manufacturing and packaging to optimize product performance and cost. Our portfolio of products targets high-volume applications, including personal computers, graphic cards, game consoles, flat panel TVs, home appliances, power tools, smart phones, battery packs, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment.

Our business model leverages global resources, including research and development and manufacturing in the United States and Asia. Our sales and technical support teams are localized in several growing markets. We operate an 8-inch wafer fabrication facility located in Hillsboro, Oregon, or the Oregon Fab, which is critical for us to accelerate proprietary technology development, new product introduction and improve our financial performance. To meet the market demand for the more mature high volume products, we also utilize the wafer manufacturing capacity of selected third party foundries. For assembly and test, we primarily rely upon our in-house facilities in China. In addition, we utilize subcontracting partners for industry standard packages. We believe our in-house packaging and testing capability provides us with a competitive advantage in proprietary packaging technology, product quality, cost and sales cycle time.

During the fiscal quarter ended March 31, 2024, we continued our product diversification program by developing new silicon and packaging platforms to expand our serviceable available market, or SAM and offer higher performance products. Our metal-oxide-semiconductor field-effect transistors, or MOSFET, and power IC product portfolio also expanded.

On March 29, 2016, we formed a joint venture (the “JV Company”) with two investment funds owned by the Municipality of Chongqing (the “Chongqing Funds”), for the purpose of constructing and operating a power semiconductor packaging, testing and 12-inch wafer fabrication facility (“Fab”) in the LiangJiang New Area of Chongqing, China. As of December 1, 2021, we owned 50.9%, and the Chongqing Funds owned 49.1% of the equity interest in the JV Company. The Joint Venture was accounted under the provisions of the consolidation guidance since we had controlling financial interests until December 1, 2021.

On December 1, 2021 (the “Effective Date”), Alpha & Omega Semiconductor (Shanghai) Ltd. (“AOS SH”) and Agape Package Manufacturing (Shanghai) Limited (“APM SH” and, together with AOS SH, the “Sellers”), each a wholly-owned subsidiary of the Company, entered into a share transfer agreement ("STA") with a third-party investor to sell a portion of the Company's equity interest in the JV Company which consists of a power semiconductor packaging, testing and 12-inch wafer

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fabrication facility in Chongqing, China (the “Transaction”). The Transaction closed on December 2, 2021 (the “Closing Date”), which reduced the Company’s equity interest in the JV Company from 50.9% to 48.8%. Also, the Company’s right to designate directors on the board of JV Company was reduced to three (3) out of seven (7) directors, from four (4) directors prior to the Transaction. As a result of the Transaction and other factors, the Company no longer has a controlling financial interest in the JV Company. The JV Company was deconsolidated from the Company’s Consolidated Financial Statements effective as of the Closing Date.

On December 24, 2021, the Company entered into a share transfer agreement with another third-party investor, pursuant to which the Company sold to this investor 1.1% of outstanding equity interest held by the Company in the JV Company. In addition, the JV Company adopted an employee equity incentive plan and issued an equity interest equivalent to 3.99% of the JV Company in exchange for cash. As a result of these two transactions, the Company owned 45.8% of the equity interest in the JV Company as of December 31, 2021.

On January 26, 2022, the JV Company completed a financing transaction pursuant to a corporate investment agreement (the “Investment Agreement”) between the JV Company and certain third-party investors (the “New Investors”). Under the Investment Agreement, the New Investors purchased newly issued equity interest of the JV Company, representing approximately 7.82% of post-transaction outstanding equity interests of the JV Company, for a total purchase price of RMB 509 million (or approximately USD 80 million based on the currency exchange rate as of January 26, 2022) (the “Investment”). Following the closing of the January 26, 2022 Investment, the percentage of outstanding JV equity interest beneficially owned by the Company was reduced to 42.2% at June 30, 2022.

In February 2024, the JV Company repurchased certain shares that were previously issued to employees under the employee equity incentive plan for $5.4 million, which increased the Company’s percentage of equity ownership in the JV Company by 0.54%. As of March 31, 2024, the percentage of outstanding JV equity interest beneficially owned by the Company was 42.8%.

We reduced our ownership of the JV Company to below 50% to increase the flexibility of the JV Company to raise capital to fund its future expansion. The JV Company is also contemplating an eventual listing on the Science and Technology Innovation Board, or STAR Market, of the Shanghai Stock Exchange. The reduction of our ownership assists the JV Company in meeting certain regulatory listing requirements. A potential STAR Market listing may take several years to consummate and there is no guarantee that such listing by the JV Company will be successful or will be completed in a timely manner, or at all. In addition, the JV Company will continue to provide us with significant level of foundry capacity to enable us to develop and manufacture our products. On July 12, 2022, the current shareholders of the JV Company entered into a shareholders contract, pursuant to which the JV Company provided us with a monthly wafer production capacity guarantee, subject to future increase when the JV Company’s production capacity reaches certain specified level.

Other Factors affecting our Performance

The global, regional economic and PC market conditions: Because our products primarily serve consumer electronic applications, any significant changes in global and regional economic conditions could materially affect our revenue and results of operations. A significant amount of our revenue is derived from sales of products in the PC markets, such as notebooks, motherboards and notebook battery packs. Therefore, a substantial decline in the PC market could have a material adverse effect on our revenue and results of operations. The PC markets have experienced a modest global decline in recent years due to continued growth of demand in tablets and smart phones, worldwide economic conditions and the industry inventory correction which had and may continue to have a material impact on the demand for our products.

A decline of the PC market may have a negative impact on our revenue, factory utilization, gross margin, our ability to resell excess inventory, and other performance measures. We have executed and continue to execute strategies to diversify our product portfolio, penetrate other market segments, including the consumer, communications and industrial markets, and improve gross margins and profit by implementing cost control measures. While making efforts to reduce our reliance on the computing market, we continue to support our computing business and capitalize on the opportunities in this market with a more focused and competitive PC product strategy to gain market share.

Manufacturing costs and capacity availability: Our gross margin is affected by a number of factors including our manufacturing costs, utilization of our manufacturing facilities, the product mixes of our sales, pricing of wafers from third party foundries and pricing of semiconductor raw materials. Capacity utilization affects our gross margin because we have certain fixed costs at our Shanghai facilities and our Oregon Fab. If we are unable to utilize our manufacturing facilities at a desired level, our gross margin may be adversely affected. In addition, from time to time, we may experience wafer capacity constraints, particularly at third party foundries, that may prevent us from meeting fully the demand of our customers. For example, the recent global shortage of semiconductor manufacturing capacity has provided us with both challenges and opportunities in the market, and highlighted the importance of maintaining sufficient and independent in-house manufacturing

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capabilities to meet increasing customer demands. While we can mitigate these constraints by increasing and re-allocating capacity at our own fab, we may not be able to do so quickly or at sufficient level, which could adversely affect our financial conditions and results of operations. In addition, we enhanced the manufacturing capability and capacity of our Oregon Fab by investing in new equipment and expanding our factory facilities, which we expect will have a positive impact on our future new product development and revenue, particularly during the period of global shortage of capacity. We also rely substantially on the JV Company to provide foundry capacity to manufacture our products, therefore it is critical that we maintain continuous access to such capacity, which may not be available at sufficient level or at a pricing terms favorable to us because of lack of control over the JV Company’s operation. We continue to maintain a business relationship with the JV Company to ensure uninterrupted supply of manufacturing capacity. On July 12, 2022, we entered into an agreement with the JV Company, pursuant to which the JV Company agrees to provide us with a monthly wafer production capacity guarantee, subject to future increase when the JV Company’s production capacity reaches certain specified level. Because we continue to rely on the JV Company to provide us with manufacturing capacity, if the JV Company take actions or make decisions that prevents us from accessing required capacity, our operations may be adversely affected.

Erosion and fluctuation of average selling price: Erosion of average selling prices of established products is typical in our industry. Consistent with this historical trend, we expect our average selling prices of existing products to decline in the future. However, in the normal course of business, we seek to offset the effect of declining average selling price by introducing new and higher value products, expanding existing products for new applications and new customers and reducing the manufacturing cost of existing products. These strategies may cause the average selling price of our products to fluctuate significantly from time to time, thereby affecting our financial performance and profitability.

Product introductions and customers’ product requirements: Our success depends on our ability to introduce products on a timely basis that meet or are compatible with our customers' specifications and performance requirements. Both factors, timeliness of product introductions and conformance to customers' requirements, are equally important in securing design wins with our customers. As we accelerate the development of new technology platforms, we expect to increase the pace at which we introduce new products and seek and acquire design wins. If we were to fail to introduce new products on a timely basis that meet customers’ specifications and performance requirements, particularly those products with major OEM customers, and continue to expand our serviceable markets, then we would lose market share and our financial performance would be adversely affected.

Distributor ordering patterns, customer demand and seasonality: Our distributors place purchase orders with us based on their forecasts of end customer demand, and this demand may vary significantly depending on the sales outlook and market and economic conditions of end customers. Because these forecasts may not be accurate, channel inventory held at our distributors may fluctuate significantly, which in turn may prompt distributors to make significant adjustments to their purchase orders placed with us. As a result, our revenue and operating results may fluctuate significantly from quarter to quarter. In addition, because our products are used in consumer electronics products, our revenue is subject to seasonality. Our sales seasonality is affected by numerous factors, including global and regional economic conditions as well as the PC market conditions, revenue generated from new products, changes in distributor ordering patterns in response to channel inventory adjustments and end customer demand for our products and fluctuations in consumer purchase patterns prior to major holiday seasons. In recent periods, broad fluctuations in the semiconductor markets and the global and regional economic conditions, in particular the decline of the PC market conditions, have had a more significant impact on our results of operations than seasonality. Furthermore, our revenue may be impacted by the level of demand from our major customers due to factors outside of our control. If these major customers experience significant decline in the demand of their products, encounter difficulties or defects in their products, or otherwise fail to execute their sales and marketing strategies successfully, it may adversely affect our revenue and results of operations.

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Principal line items of condensed consolidated statements of income

The following describes the principal line items set forth in our Condensed Consolidated Statements of Income.

Revenue

We generate revenue primarily from the sale of power semiconductors, consisting of power discretes and power ICs. Historically, a majority of our revenue has been derived from power discrete products. Because our products typically have three-year to five-year life cycles, the rate of new product introduction is an important driver of revenue growth over time. We believe that expanding the breadth of our product portfolio is important to our business prospects, because it provides us with an opportunity to increase our total bill-of-materials within an electronic system and to address the power requirements of additional electronic systems. In addition, a small percentage of our total revenue is generated by providing packaging and testing services to third parties through one of our subsidiaries.

Our product revenue is reported net of the effect of the estimated stock rotation returns and price adjustments that we expect to provide to our distributors. Stock rotation returns are governed by contract and are limited to a specified percentage of the monetary value of products purchased by the distributor during a specified period. At our discretion or upon our direct negotiations with the original design manufacturers (“ODMs”) or original equipment manufacturers (“OEMs”), we may elect to grant special pricing that is below the prices at which we sold our products to the distributors. In these situations, we will grant price adjustments to the distributors reflecting such special pricing. We estimate the price adjustments for inventory at the distributors based on factors such as distributor inventory levels, pre-approved future distributor selling prices, distributor margins and demand for our products.

In February 2023, we entered into a license agreement with a customer to license our proprietary SiC technology and to provide 24-months of engineering and development services for a total fee of $45.0 million, consisting of fees of $18.0 million, $6.8 million and $9.0 million paid to us in the March 2023, July 2023 and February 2024, respectively, with the remaining amount to be paid upon the achievement of specified engineering services and product milestones. The license and development fee is determined to be one performance obligation and is recognized over the 24 months during which we perform the engineering and development services. We use the input method to measure progression of the transfer of services. During the three and nine months ended March 31, 2024, we recorded $5.1 million and $16.2 million of license and development revenue, respectively. During the three and nine months ended March 31, 2023, the Company recorded $3.6 million of license and development revenue. As of March 31, 2024, we had recorded a total of $26.1 million of license and development revenue. We also entered an accompanying supply agreement to provide limited wafer supply to the customer.

Cost of goods sold

Our cost of goods sold primarily consists of costs associated with semiconductor wafers, packaging and testing, personnel, including share-based compensation expense, overhead attributable to manufacturing, operations and procurement, and costs associated with yield improvements, capacity utilization, warranty and valuation of inventories. As the volume of sales increases, we expect cost of goods sold to increase. While our utilization rates cannot be immune to the market conditions, our goal is to make them less vulnerable to market fluctuations. We believe our market diversification strategy and product growth will drive higher volume of manufacturing which will improve our factory utilization rates and gross margin in the long run.

Operating expenses

Our operating expenses consist of research and development, and selling, general and administrative expenses. We expect our operating expenses as a percentage of revenue to fluctuate from period to period as we continue to exercise cost control measures in response to the declining PC market as well as align our operating expenses to the revenue level.

Research and development expenses. Our research and development expenses consist primarily of salaries, bonuses, benefits, share-based compensation expense, expenses associated with new product prototypes, travel expenses, fees for engineering services provided by outside contractors and consultants, amortization of software and design tools, depreciation of equipment and overhead costs. We continue to invest in developing new technologies and products utilizing our own fabrication and packaging facilities as it is critical to our long-term success. We also evaluate appropriate investment levels and stay focused on new product introductions to improve our competitiveness. We expect that our research and development expenses will fluctuate from time to time.

Selling, general and administrative expenses. Our selling, general and administrative expenses consist primarily of salaries, bonuses, benefits, share-based compensation expense, product promotion costs, occupancy costs, travel expenses,

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expenses related to sales and marketing activities, amortization of software, depreciation of equipment, maintenance costs and other expenses for general and administrative functions as well as costs for outside professional services, including legal, audit and accounting services. We expect our selling, general and administrative expenses to fluctuate in the near future as we continue to exercise cost control measures.

Income tax expense

We are subject to income taxes in various jurisdictions. Significant judgment and estimates are required in determining our worldwide income tax expense. The calculation of tax liabilities involves dealing with uncertainties in the application of complex tax regulations of different jurisdictions globally. We establish accruals for potential liabilities and contingencies based on a more likely than not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, the applicable accounting guidance permits us to recognize a tax benefit measured at the largest amount of tax benefit that is more likely than not to be realized upon settlement with a taxing authority. If the actual tax outcome of such exposures is different from the amounts that were initially recorded, the differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Changes in the location of taxable income (loss) could result in significant changes in our income tax expense.

We record a valuation allowance against deferred tax assets if it is more likely than not that a portion of the deferred tax assets will not be realized, based on historical profitability and our estimate of future taxable income in a particular jurisdiction. Our judgments regarding future taxable income may change due to changes in market conditions, changes in tax laws, tax planning strategies or other factors. If our assumptions and consequently our estimates change in the future, the deferred tax assets may increase or decrease, resulting in corresponding changes in income tax expense. Our effective tax rate is highly dependent upon the geographic distribution of our worldwide profits or losses, the tax laws and regulations in each geographical region where we have operations, the availability of tax credits and carry-forwards and the effectiveness of our tax planning strategies.

"U.S. Tax Cuts and Jobs Act", Enacted December 22, 2017

On December 22, 2017, the United States enacted tax reform legislation through the Tax Cuts and Jobs Act (“the Tax Act”), which significantly changes the existing U.S. tax laws, including, but not limited to, (1) a reduction in the corporate tax rate from 35% to 21%, (2) a shift from a worldwide tax system to a territorial system, (3) eliminating the corporate alternative minimum tax (AMT) and changing how existing AMT credits can be realized, (4) bonus depreciation that will allow for full expensing of qualified property, (5) creating a new limitation on deductible interest expense and (6) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017.

The Company is not currently subject to the Base Erosion and Anti-Abuse (BEAT) tax, which is a tax imposed on certain entities who make payments to their non U.S. affiliates, where such payments reduce the U.S. tax base. The BEAT tax is imposed at a rate of 10% on Adjusted Taxable Income, excluding certain payments to foreign related entities. It is an incremental tax over and above the corporate income tax and is recorded as a period cost. It is possible that this tax could be applicable in future periods, which would cause an increase to the effective tax rate and cash taxes.

“The Chip and Science Act of 2022”, Enacted August 2, 2022

In August 2022 the U.S. enacted the Chip and Science Act of 2022 (the Chips Act). The Chips Act provides incentives to semiconductor chip manufacturers in the United States, including providing manufacturing investment credits of 25% for investments in semiconductor manufacturing property placed in service after December 31, 2022, for which construction begins before January 1, 2027. Property investments qualify for the 25% credit if, among other requirements, the property is integral to the operation of an advanced manufacturing facility, defined as having a primary purpose of manufacturing semiconductors or semiconductor manufacturing equipment. Currently, we are evaluating the impact of the Chips Act to us.

“The Inflation Reduction Act”, Enacted August 16, 2022

In August 2022 the United States enacted tax legislation through the Inflation Reduction Act (IRA). The IRA introduces a 15% corporate alternative minimum tax (CAMT) for corporations whose average annual adjusted financial statement income (AFSI) for any consecutive three-tax-year period preceding the applicable tax year exceeds $1 billion. The CAMT is effective for tax years beginning after 31 December 2022. The CAMT is currently not applicable to the Company.

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Bermuda Corporate Income Tax for Tax Years Beginning in 2025

The Company is subject to income tax expense or benefit based upon pre-tax income or loss reported in the consolidated statements of income (loss) and the provisions of currently enacted tax laws. The parent company is incorporated under the laws of Bermuda and is subject to Bermuda law with respect to taxation. Under current Bermuda law, the Company is not subject to any income or capital gains taxes in Bermuda. As we have previously disclosed, the Government of Bermuda announced in December 2023 that it enacted the Corporate Income Tax Act 2023, potentially imposing a 15% corporate income tax (CIT) on Bermuda companies that are within the scope of the CIT, that will be effective for tax years beginning on or after January 1, 2025. In particular, the CIT applies to multinational companies with annual revenue of 750 million euros or more in the consolidated financial statements of the ultimate parent entity for at least two of the four fiscal years immediately preceding the fiscal year when the CIT may apply.

The Company is not in a position to determine whether the annual revenues may meet and/or cross the 750 million Euro threshold for at least two of the four fiscal years immediately preceding the fiscal year when CIT may apply. The Company continues to monitor and assess if and when it may be within the scope of the CIT. If we become subject to the Bermuda CIT, we may be subject to additional income taxes, which may adversely affect our financial position, results of operations and our overall business.

Equity method investment income/loss from equity investee

We use the equity method of accounting when we have the ability to exercise significant influence, but we do not have control, as determined in accordance with generally accepted accounting principles, over the operating and financial policies of the company. Effective December 2, 2021, we reduced our equity interest in the JV Company below 50% of outstanding equity ownership and experienced a loss of control of the JV Company. As a result, we record our investment under equity method of accounting. Since we are unable to obtain accurate financial information from the JV Company in a timely manner, we record our share of earnings or losses of such affiliate on a one quarter lag.

We record our interest in the net earnings of the equity method investee, along with adjustments for unrealized profits or losses on intra-entity transactions and amortization of basis differences, within earnings or loss from equity interests in the Condensed Consolidated Statements of Income. Profits or losses related to intra-entity sales with the equity method investee are eliminated until realized by the investor or investee. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are generally amortized over the lives of the related assets that gave rise to them. Equity method goodwill is not amortized or tested for impairment. Instead the total equity method investment balance, including equity method goodwill, is tested for impairment. We review for impairment whenever factors indicate that the carrying amount of the investment might not be recoverable. In such a case, the decrease in value is recognized in the period the impairment occurs in the Consolidated Statement of Income.

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Results of Operations

The following tables set forth statements of income, also expressed as a percentage of revenue, for the three and nine months ended March 31, 2024 and 2023. Our historical results of operations are not necessarily indicative of the results for any future period.

	Three Months Ended March 31,								Nine Months Ended March 31,
	2024		2023		2024		2023		2024		2023		2024		2023
	(in thousands)				(% of revenue)				(in thousands)				(% of revenue)
Revenue	$	150,060	$	132,560	100.0	%	100.0	%	$	495,978	$	529,796	100.0	%	100.0	%
Cost of goods sold	114,505		101,774		76.3	%	76.8	%	365,497		374,841		73.7	%	70.8	%
Gross profit	35,555		30,786		23.7	%	23.2	%	130,481		154,955		26.3	%	29.2	%
Operating expenses
Research and development	23,095		22,578		15.4	%	17.0	%	68,127		65,435		13.7	%	12.4	%
Selling, general and administrative	22,964		22,610		15.3	%	17.1	%	64,611		69,603		13.0	%	13.1	%
Total operating expenses	46,059		45,188		30.7	%	34.1	%	132,738		135,038		26.7	%	25.5	%
Operating income (loss)	(10,504)		(14,402)		(7.0)	%	(10.9)	%	(2,257)		19,917		(0.4)	%	3.7	%
Other income (loss), net	308		(513)		0.2	%	(0.4)	%	(138)		(1,432)		—	%	(0.3)	%
Interest income (expense), net	271		5		0.2	%	—	%	774		(1,000)		0.2	%	(0.2)	%
Net income (loss) before income taxes	(9,925)		(14,910)		(6.6)	%	(11.3)	%	(1,621)		17,485		(0.2)	%	3.2	%
Income tax expense	611		2,517		0.4	%	1.9	%	2,643		5,550		0.5	%	1.0	%
Net income (loss) before income (loss) from equity method investment	(10,536)		(17,427)		(7.0)	%	(13.2)	%	(4,264)		11,935		(0.7)	%	2.2	%
Equity method investment income (loss) from equity investee	(676)		(1,480)		(0.5)	%	(1.1)	%	(4,085)		1,533		(0.8)	%	0.3	%
Net income (loss)	$	(11,212)	$	(18,907)	(7.5)	%	(14.3)	%	$	(8,349)	$	13,468	(1.5)	%	2.5	%

Share-based compensation expense was recorded as follows:

	Three Months Ended March 31,								Nine Months Ended March 31,
	2024		2023		2024		2023		2024		2023		2024		2023
	(in thousands)				(% of revenue)				(in thousands)				(% of revenue)
Cost of goods sold	$	1,424	$	1,723	0.9	%	1.3	%	$	3,140	$	5,259	0.6	%	1.0	%
Research and development	2,163		2,987		1.4	%	2.3	%	4,586		8,808		0.9	%	1.7	%
Selling, general and administrative	4,878		5,722		3.3	%	4.3	%	10,348		20,052		2.1	%	3.8	%
Total	$	8,465	$	10,432	5.6	%	7.9	%	$	18,074	$	34,119	3.6	%	6.5	%

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Three and Nine Months Ended March 31, 2024 and 2023

Revenue

The following is a summary of revenue by product type:

	Three Months Ended March 31,								Nine Months Ended March 31,
	2024		2023		Change				2024		2023		Change
	(in thousands)				(in thousands)		(in percentage)		(in thousands)				(in thousands)		(in percentage)
Power discrete	$	93,815	$	80,962	$	12,853	15.9	%	$	324,093	$	363,117	$	(39,024)	(10.7)	%
Power IC	49,990		47,416		2,574		5.4	%	153,032		159,708		(6,676)		(4.2)	%
Packaging and testing services and other	1,204		552		652		118.1	%	2,694		3,341		(647)		(19.4)	%
License and development services	5,051		3,630		1,421		39.1	%	16,159		3,630		12,529		345.2	%
	$	150,060	$	132,560	$	17,500	13.2	%	$	495,978	$	529,796	$	(33,818)	(6.4)	%

The following is a summary of revenue by end market:

	Three Months Ended March 31,								Nine Months Ended March 31,
	2024		2023		2024		2023		2024		2023		2024		2023
	(in thousands)				(% of revenue)				(in thousands)				(% of revenue)
Computing	$	68,655	$	38,062	45.8	%	28.7	%	$	210,761	$	191,205	42.5	%	36.1	%
Consumer	23,571		44,568		15.7	%	33.6	%	78,153		137,017		15.8	%	25.9	%
Communication	26,820		19,273		17.9	%	14.5	%	86,811		86,002		17.5	%	16.2	%
Power Supply and Industrial	24,759		26,475		16.5	%	20.1	%	101,400		108,601		20.4	%	20.5	%
Packaging and testing services and other	1,204		552		0.7	%	0.4	%	2,694		3,341		0.5	%	0.6	%
License and development services	5,051		3,630		3.4	%	2.7	%	16,159		3,630		3.3	%	0.7	%
	$	150,060	$	132,560	100.0	%	100.0	%	$	495,978	$	529,796	100.0	%	100.0	%

Total revenue was $150.1 million for the three months ended March 31, 2024, an increase of $17.5 million, or 13.2%, as compared to $132.6 million for the same quarter last year. The increase was primarily due to an increase of $12.9 million and $2.6 million in sales of power discrete products and sales of power IC products, respectively, as well as an increase of $1.4 million in license and development services. The increase in power discrete and power IC product sales was primarily due to a 46.9% increase in unit shipments, partially offset by a 23.7% decrease in average selling prices compared to same quarter last year due to a shift in product mix. The increase in revenues was primarily driven by a significant increase in the computing markets, particularly in notebook and motherboard products, partially offset by decreased sales in the consumer market, particularly in gaming products. The revenue of packaging and testing services and other for the three months ended March 31, 2024, as compared to same quarter last year, remained flat. The increase in license and development services for the three months ended March 31, 2024 was related to the license agreement signed in February 2023 with a customer to license our proprietary SiC technology and to provide 24-month engineering and development services.

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Total revenue was $496.0 million for the nine months ended March 31, 2024, a decrease of $33.8 million, or 6.4%, as compared to $529.8 million for the same period last year. The decrease was primarily due to a decrease of $39.0 million and $6.7 million in sales of power discrete products and sales of power IC products, respectively, as well as a decrease of $0.6 million in revenue of packaging and testing services, offset by an increase of $12.5 million in license and development services. The decrease in power discrete and power IC product sales was primarily due to a 19.1% decrease in average selling prices compared to same period of last year due to a shift in product mix, partially offset by a 12.2% increase in unit shipments. The decrease in revenues was primarily driven by a decrease in the consumer markets, particularly in gaming products, partially offset by an increase in the computing market, particularly in notebook products. The decrease in revenue of packaging and testing services and other for the nine months ended March 31, 2024, as compared to same period last year, was primarily due to decreased demand. The increase in license and development services for the nine months ended March 31, 2024 was related to the license agreement, signed in February 2023, with a customer to license our proprietary SiC technology and to provide 24-month engineering and development services.

Cost of goods sold and gross profit

	Three Months Ended March 31,										Nine Months Ended March 31,
	2024			2023			Change				2024			2023			Change
	(in thousands)						(in thousands)		(in percentage)		(in thousands)						(in thousands)		(in percentage)
Cost of goods sold	$	114,505		$	101,774		$	12,731	12.5	%	$	365,497		$	374,841		$	(9,344)	(2.5)	%
Percentage of revenue	76.3		%	76.8		%					73.7		%	70.8		%
Gross profit	$	35,555		$	30,786		$	4,769	15.5	%	$	130,481		$	154,955		$	(24,474)	(15.8)	%
Percentage of revenue	23.7		%	23.2		%					26.3		%	29.2		%

Cost of goods sold was $114.5 million for the three months ended March 31, 2024, an increase of $12.7 million, or 12.5%, as compared to $101.8 million for the same quarter last year. The increase was primarily due to 13.2% increase in revenue. Gross margin increased by 0.5 percentage points to 23.7% for the three months ended March 31, 2024, as compared to 23.2% for the same quarter last year. The gross margin for the three months ended March 31, 2024, as compared to same quarter last year, remained flat.

Cost of goods sold was $365.5 million for the nine months ended March 31, 2024, a decrease of $9.3 million, or 2.5%, as compared to $374.8 million for the same period last year. The decrease was primarily due to 6.4% decrease in revenue. Gross margin decreased by 2.9 percentage points to 26.3% for the nine months ended March 31, 2024, as compared to 29.2% for the same period last year. The decrease in gross margin was primarily due to higher material costs and less favorable product mix during the periods.

39

Research and development expenses

	Three Months Ended March 31,								Nine Months Ended March 31,
	2024		2023		Change				2024		2023		Change
	(in thousands)				(in thousands)		(in percentage)		(in thousands)				(in thousands)		(in percentage)
Research and development expenses	$	23,095	$	22,578	$	517	2.3	%	$	68,127	$	65,435	$	2,692	4.1	%

Research and development expenses were $23.1 million for the three months ended March 31, 2024, an increase of $0.5 million, or 2.3%, as compared to $22.6 million for the same quarter last year. The increase was primarily attributable to a $0.9 million increase in employee compensation and benefit expense mainly due to increased headcount and higher business and medical insurance expenses as well as higher bonus expenses and a $0.8 million in allocation, partially offset by a $0.8 million decrease in share-based compensation expense as a result of a cancellation of performance-based restricted stock units and a modification of market-based restricted stock units in September 2023 quarter, as well as a $0.4 million decrease in consulting fees.

Research and development expenses were $68.1 million for the nine months ended March 31, 2024, an increase of $2.7 million, or 4.1%, as compared to $65.4 million for the same period last year. The increase was primarily attributable to a $3.1 million increase in employee compensation and benefit expense mainly due to increased headcount, higher business and medical insurance expenses as well as higher bonus expenses, a $0.7 million increase in depreciation expenses, a $0.9 million increase in product prototyping engineering expense as a result of increased engineering activities, and a $2.3 million in allocation, partially offset by a $4.2 million decrease in share-based compensation expense as a result of a cancellation of performance-based restricted stock units due to failure to meet performance objectives and a modification of market-based restricted stock units in current periods, as well as a $0.1 million decrease in recruiting fees

Selling, general and administrative expenses

	Three Months Ended March 31,								Nine Months Ended March 31,
	2024		2023		Change				2024		2023		Change
	(in thousands)				(in thousands)		(in percentage)		(in thousands)				(in thousands)		(in percentage)
Selling, general and administrative	$	22,964	$	22,610	$	354	1.6	%	$	64,611	$	69,603	$	(4,992)	(7.2)	%

Selling, general and administrative expenses were $23.0 million for the three months ended March 31, 2024, an increase of $0.4 million, or 1.6%, as compared to $22.6 million for the same quarter last year. The increase was primarily due to a $0.2 million increase in employee compensation and benefits expenses primarily due to increased headcount and higher bonus expense, offset by lower business insurance expenses, a $0.4 million increase in consulting fees and a $0.9 million increase in allocation, partially offset by a $0.8 million decrease in share-based compensation expense as a result of a cancellation of performance-based restricted stock units and a modification of market-based restricted stock units in September 2023 quarter and $0.4 million decrease in legal fees.

Selling, general and administrative expenses were $64.6 million for the nine months ended March 31, 2024, a decrease of $5.0 million, or 7.2%, as compared to $69.6 million for the same period last year. The decrease was primarily attributable to a $9.7 million decrease in share-based compensation expense as a result of a cancellation of performance-based restricted stock units due to failure to meet performance objectives and a modification of market-based restricted stock units in current periods, partially offset by a $0.5 million increase in employee compensation and benefit expense mainly due to increased headcount and higher bonus expenses, offset by lower business insurance expenses, a $0.9 million increase in consulting fees, $0.6 million increase in audit and tax consulting fees, a $0.3 million increase in depreciation expenses, a $0.5 million increase in facility expenses as a result of more rent expenses, and $1.9 million increase in allocation.

Other income (loss), net

40

	Three Months Ended March 31,								Nine Months Ended March 31,
	2024		2023		Change				2024		2023		Change
	(in thousands)				(in thousands)		(in percentage)		(in thousands)				(in thousands)		(in percentage)
Other income (loss), net	$	308	$	(513)	$	821	(160.0)	%	$	(138)	$	(1,432)	$	1,294	(90.4)	%

Other income (loss), net increased in the three and nine months ended March 31, 2024 as compared to the same periods last year primarily due to decrease in foreign currency exchange loss as a result of the appreciation of RMB against USD.

Interest income (expense), net

	Three Months Ended March 31,								Nine Months Ended March 31,
	2024		2023		Change				2024		2023		Change
	(in thousands)				(in thousands)		(in percentage)		(in thousands)				(in thousands)		(in percentage)
Interest income (expense), net	$	271	$	5	$	266	5,320.0	%	$	774	$	(1,000)	$	1,774	(177.4)	%

Interest income (expense), net increased by $0.3 million during the three months ended March 31, 2024 as compared to the same quarter last year primarily due to a $0.3 million decrease in interest expense as a result of less outstanding loan balance in current quarter.

Interest income (expense), net increased by $1.8 million during the nine months ended March 31, 2024 as compared to the same period last year was primarily due to a $1.3 million increase in interest income as a result of higher interest rate and a $0.5 million decrease in interest expense as a result of less outstanding loan balance in the current periods.

Income tax expense

	Three Months Ended March 31,								Nine Months Ended March 31,
	2024		2023		Change				2024		2023		Change
	(in thousands)				(in thousands)		(in percentage)		(in thousands)				(in thousands)		(in percentage)
Income tax expense	$	611	$	2,517	$	(1,906)	(75.7)	%	$	2,643	$	5,550	$	(2,907)	(52.4)	%

The Company recognized income tax expense of approximately $0.6 million and $2.5 million for the three months ended March 31, 2024 and 2023, respectively. The income tax expense of $0.6 million for the three months ended March 31, 2024 included a $0.1 million discrete tax expense. The income tax expense of $2.5 million for the three months ended March 31, 2023 included a $0.03 million discrete tax expense. Excluding the discrete income tax items, the income tax expense for the three months ended March 31, 2024 and 2023 was $0.6 million and $2.5 million, respectively, and the effective tax rate for the three months ended March 31, 2024 and 2023 was (5.3)% and (15.2)%, respectively. The changes in the tax expense and effective tax rate between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current year and the same period of last year as well as from reporting pretax book loss of $10.6 million for the three months ended March 31, 2024 as compared to $16.4 million of pretax book loss for the three months ended March 31, 2023.

The Company recognized income tax expense of approximately $2.6 million and $5.6 million for the nine months ended March 31, 2024 and 2023, respectively. The income tax expense of $2.6 million for the nine months ended March 31, 2024 included a $0.2 million discrete tax expense. The income tax expense of $5.6 million for the nine months ended March 31, 2023 included a $0.1 million discrete tax expense. Excluding the discrete income tax items, the income tax expense for the nine months ended March 31, 2024 and 2023 was $2.5 million and $5.4 million, respectively, and the effective tax rate for the nine months ended March 31, 2024 and 2023 was (43.4)% and 28.4%, respectively. The changes in the tax expense and effective tax rate between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current year and the same period of last year as well as from reporting pretax book loss of $5.7 million for the nine months ended March 31, 2024 as compared to $19.0 million of pretax book income for the nine months ended March 31, 2023.

The Company files its income tax returns in the United States and in various foreign jurisdictions. The tax years 2001 to 2023 remain open to examination by U.S. federal and state tax authorities. The tax years 2017 to 2023 remain open to examination by foreign tax authorities.

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The Company's income tax returns are subject to examinations by the Internal Revenue Service and other tax authorities in various jurisdictions. In accordance with the guidance on the accounting for uncertainty in income taxes, the Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of March 31, 2024, the gross amount of unrecognized tax benefits was approximately $9.5 million, of which $6.4 million, if recognized, would reduce the effective income tax rate in future periods. If the Company's estimate of income tax liabilities proves to be less than the ultimate assessment, then a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. The Company does not anticipate any material changes to its uncertain tax positions during the next twelve months.

Liquidity and Capital Resources

Our principal need for liquidity and capital resources is to maintain sufficient working capital to support our operations and to invest adequate capital expenditures to grow our business. To date, we finance our operations and capital expenditures primarily through funds generated from operations and borrowings under our term loans, financing lease and other debt agreements.

In March 2024, one of the Company's subsidiaries in China entered into a line of credit facility with Bank of Communications Limited in China. The purpose of the credit facility is to provide working capital borrowings. The Company could borrow up to approximately RMB 140 million or $19.4 million based on currency exchange rate between RMB and U.S. Dollar on March 31, 2024 with a maturity date of March 15, 2025. As of March 31, 2024, there was no outstanding balance for this loan.

On February 6, 2023, we entered into a license and engineering service agreement with a leading power semiconductor automotive supplier related to our Silicon Carbide (SiC) MOSFET and diode technology. Pursuant to the agreement, we license and provide 24-month engineering support for our proprietary SiC technology to the supplier for a total fee of $45.0 million, consisted of an upfront fees of $18.0 million, $6.8 million and $9.0 million paid to us in the March, July 2023 and February 2024, respectively, and the remaining amount to be paid upon our achievements of specified business and product milestones. In addition, we entered an accompanying supply agreement with the supplier to provide it with limited wafer supply.

In December 2023, one of the Company's subsidiaries in China entered into a line of credit facility with Industrial and Commercial Bank of China. The purpose of the credit facility was to provide working capital borrowings. The Company could borrow up to approximately RMB 72.0 million, or $10.2 million based on currency exchange rate between RMB and U.S. Dollar on December 31, 2023, with a maturity date of December 31, 2024. As of March 31, 2024, there was no outstanding balance for this loan.

In September 2023, one of the Company's subsidiaries in China entered into a line of credit facility with China Construction Bank. The purpose of the credit facility is to provide working capital borrowings. The Company could borrow up to approximately RMB 50 million or $6.8 million based on currency exchange rate between RMB and U.S. Dollar on September 30, 2023 with a maturity date of September 8, 2025. As of March 31, 2024, there was no outstanding balance for this loan.

In September 2021, Jireh Semiconductor Incorporated (“Jireh”), one of the wholly-owned subsidiaries, entered into a financing arrangement agreement with a company (“Lender”) for the lease and purchase of a machinery equipment manufactured by a supplier. This agreement has a 5 years term, after which Jireh has the option to purchase the equipment for $1. The implied interest rate was 4.75% per annum which was adjustable based on every five basis point increase in 60-month U.S. Treasury Notes, until the final installation and acceptance of the equipment. The total purchase price of this equipment was euro 12.0 million. In April 2021, Jireh made a down payment of euro 6.0 million, representing 50% of the total purchase price of the equipment, to the supplier. In June 2022, the equipment was delivered to Jireh after Lender paid 40% of the total purchase price, for euro 4.8 million, to the supplier on behalf of Jireh. In September 2022, Lender paid the remaining 10% payment for the total purchase price and reimbursed Jireh for the 50% down payment, after the installation and configuration of the equipment. The title of the equipment was transferred to Lender following such payment. The agreement was amended with fixed implied interest rate of 7.51% and monthly payment of principal and interest effective in October 2022. Other terms remain the same. In addition, Jireh purchased hardware for the machine under this financing arrangement. The purchase price of this hardware was $0.2 million. The financing arrangement is secured by this equipment and other equipment which had the

42

net book value of $14.0 million as of March 31, 2024. As of March 31, 2024, the outstanding balance of this debt financing was $9.8 million.

On August 18, 2021, Jireh entered into a term loan agreement with a financial institution (the "Bank") in an amount up to $45.0 million for the purpose of expanding and upgrading the Company’s fabrication facility located in Oregon. The obligation under the loan agreement is secured by substantially all assets of Jireh and guaranteed by the Company. The agreement has a 5.5 year term and matures on February 16, 2027. Jireh is required to make consecutive quarterly payments of principal and interest. The loan accrues interest based on adjusted Secured Overnight Financing Rate ("SOFR)" plus the applicable margin based on the outstanding balance of the loan. This agreement contains customary restrictive covenants and includes certain financial covenants that the Company is required to maintain. Jireh drew down $45.0 million on February 16, 2022 with the first payment of principal beginning in October 2022. As of March 31, 2024, Jireh was in compliance with these covenants and the outstanding balance of this loan was $31.5 million.

On August 9, 2019, one of the Company's wholly-owned subsidiaries (the “Borrower”) entered into a factoring agreement with the Hongkong and Shanghai Banking Corporation Limited (“HSBC”), whereby the Borrower assigns certain of its accounts receivable with recourse. This factoring agreement allows the Borrower to borrow up to 70% of the net amount of its eligible accounts receivable of the Borrower with a maximum amount of $30.0 million. The interest rate is based on the SOFR plus 2.01% per annum. The Company is the guarantor for this agreement. The Company is accounting for this transaction as a secured borrowing. In addition, any cash held in the restricted bank account controlled by HSBC has a legal right of offset against the borrowing. This agreement, with certain financial covenants required, has no expiration date. On August 11, 2021, the Borrower signed an agreement with HSBC to reduce the borrowing maximum amount to $8.0 million with certain financial covenants required. Other terms remain the same. As of March 31, 2024, the Borrower was in compliance with these covenants. As of March 31, 2024, there was no outstanding balance and the Company had unused credit of approximately $8.0 million.

We believe that our current cash and cash equivalents and cash flows from operations will be sufficient to meet our anticipated cash needs, including working capital and capital expenditures, for at least the next twelve months. In the long-term, we may require additional capital due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. If our cash is insufficient to meet our needs, we may seek to raise capital through equity or debt financing. The sale of additional equity securities could result in dilution to our shareholders. The incurrence of indebtedness would result in increased debt service obligations and may include operating and financial covenants that would restrict our operations. We cannot be certain that any financing will be available in the amounts we need or on terms acceptable to us, if at all.

Cash, cash equivalents and restricted cash

As of March 31, 2024 and June 30, 2023, we had $174.6 million and $195.6 million of cash, cash equivalents and restricted cash, respectively. Our cash, cash equivalents and restricted cash primarily consist of cash on hand, restricted cash, and short-term bank deposits with original maturities of three months or less. Of the $174.6 million and $195.6 million cash, cash equivalents and restricted cash, $89.2 million and $108.2 million, respectively, are deposited with financial institutions outside the United States.

The following table shows our cash flows from operating, investing and financing activities for the periods indicated:

	Nine Months Ended March 31,
	2024		2023
	(in thousands)
Net cash provided by operating activities	$	18,591	$	48,654
Net cash used in investing activities	(28,593)		(90,603)
Net cash used in financing activities	(10,923)		(6,417)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(83)		(121)
Net decrease in cash, cash equivalents and restricted cash	$	(21,008)	$	(48,487)

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Cash flows from operating activities

Net cash provided by operating activities of $18.6 million for the nine months ended March 31, 2024 resulted primarily from net loss of $8.3 million and non-cash expenses of $61.2 million, partially offset by net changes in assets and liabilities using cash of $34.2 million. The non-cash expenses of $61.2 million primarily included $18.1 million of share-based compensation expense, $39.8 million of depreciation and amortization expenses, $4.1 million of loss from equity investment and $0.9 million of deferred income taxes. The net changes in assets and liabilities of $34.2 million were primarily due to a $4.3 million decrease in accounts payable due to timing of payments, and $0.4 million decrease in deferred revenue, a $14.9 million increase in inventories as a result of our inventories built up for preparation of uncertainty of supply chains, a $0.9 million decrease in income taxes payable, and a $28.9 million decrease in accrued and other liabilities, partially offset by a $9.2 million decrease in accounts receivable as a result of timing of the shipments and payments collected, a $3.6 million decrease in other current and long-term assets due to decrease in advance payments to vendors, and a $2.3 million increase in net payable to equity investee.

Net cash provided by operating activities of $48.7 million for the nine months ended March 31, 2023 resulted primarily from net income of $13.5 million and non-cash expenses of $63.2 million, partially offset by net changes in assets and liabilities using cash of $28.0 million, The non-cash expenses of $63.2 million primarily included $34.1 million of share-based compensation expense, $31.2 million of depreciation and amortization expenses, $0.4 million of loss on disposal of property and equipment, $1.5 million of income from equity investment and $1.0 million of deferred income taxes. The net changes in assets and liabilities of $28.0 million were primarily due to a $10.6 million decrease in net payable to equity investee, a $21.6 million decrease in accounts payable due to timing of payments, a $21.7 million increase in inventories as a result of our inventories built up for preparation of uncertainty of supply chains, $7.8 million increase in other current and long-term assets due to increase in advance payments to vendors, and a $29.4 million decrease in accrued and other liabilities, partially offset by a $46.2 million decrease in accounts receivable as a result of timing of the shipments and payments collected, a $14.4 million increase in deferred revenue, and a $2.5 million increase in income taxes payable.

Cash flows from investing activities    

Net cash used in investing activities of $28.6 million for the nine months ended March 31, 2024 was primarily attributable to $29.8 million in purchases of property and equipment, partially offset by $0.8 million government grants related to fixed assets and $0.4 million of proceeds from the sale of property and equipment.

Net cash used in investing activities of $90.6 million for the nine months ended March 31, 2023 was primarily attributable to $91.3 million in purchases of property and equipment, partially offset by $0.6 million government grants related to fixed assets.

Cash flows from financing activities

Net cash used in financing activities of $10.9 million for the nine months ended March 31, 2024 was primarily attributable to $8.6 million in repayments of borrowings, $0.6 million in payment of finance lease obligations, and $7.3 million in common shares acquired to settle withholding tax related to vesting of restricted stock units, partially offset by $5.7 million of proceeds from exercise of stock options and ESPP.

Net cash used in financing activities of $6.4 million for the nine months ended March 31, 2023 was primarily attributable to $10.3 million in repayments of borrowings, $0.6 million in payment of finance lease obligations, $6.2 million in common shares acquired to settle withholding tax related to vesting of restricted stock units, and $2.7 million payment for repurchases of common shares, partially offset by $8.6 million proceeds from borrowings and $4.6 million of proceeds from exercise of stock options and ESPP.

Commitments

See Note 12 of the Notes to the Condensed Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for a description of commitments.

Off-Balance Sheet Arrangements

As of March 31, 2024, we had no off-balance sheet arrangements.

Contractual Obligations

44

There were no material changes outside of our ordinary course of business in our contractual obligations from those disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023.

Recent Accounting Pronouncements

See Note 1 of the Notes to the Condensed Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for a description of recent accounting pronouncements, including the expected dates of adoption and estimated effects on results of operations and financial condition, which is incorporated herein by reference.

45

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the market risks previously disclosed in Part II, Item 7A, "Quantitative and Qualitative Disclosures About Market Risk," of our Annual Report on Form 10-K for the year ended June 30, 2023, filed with the SEC on August 29, 2023.

ITEM 4. CONTROLS AND PROCEDURES

Management's Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”)), as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of March 31, 2024 have been designed and are functioning effectively to provide reasonable assurance that the information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

As previously disclosed in Item 9A of our Annual Report on Form 10-K for the fiscal year ended June 30, 2023, management identified a material weakness in our internal control over financial reporting due to the fact that we did not: (1) design and maintain effective information technology general controls in the areas of user access, and segregation of duties for one of the information technology systems that supports the Company’s financial reporting over inventory (work in process and finished goods) in costing; and (ii) identify and test control to ensure the reliability of the costing of inventory (work in process and finished goods). Our management is in the process of addressing the material weakness.

Remedial Measures

Our management, with oversight from our Audit Committee, has developed, designed and implemented remediation plans in response to the identified material weakness described above. We have adopted additional measures to further improve information technology general controls in the areas of user access, including implementation of automated control to test calculation of standard cost. We also modified our procedures to ensure segregation of duties for our system that supports financial reporting over inventory (work in process and finished goods) in costing, and to identify and test control to ensure reliability of costing of inventory (work in process and finished goods). These additional efforts are required to remediate the materiel weakness.

Our management is committed to maintaining a strong control environment throughout the Company. Although management believes that the above efforts have improved our internal control over financial reporting and is in the process of remediating the above identified material weakness, we intend to continue to implement new processes and controls when needed to continue strengthening our internal control over financial reporting.

Changes in Internal Control over Financial Reporting

Other than the remedial measures described above, there have not been any significant changes in our internal control over financial reporting during the quarter ended March 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitation on Effectiveness of Controls

While our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance that their respective objectives will be met, we do not expect that our disclosure controls and procedures or our internal control over financial reporting are or will be capable of preventing or detecting all errors and all fraud. Any control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met.

46

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

As previously disclosed, the DOJ commenced an investigation into the Company’s compliance with export control regulations relating to its business transactions with Huawei and its affiliates (“Huawei”), which were added to the “Entity List” by the DOC in May 2019. The Company has been cooperating fully with federal authorities in the investigation. In connection with this investigation, DOC previously requested the Company to suspend shipments of its products to Huawei. The Company complied with such request, and the Company has not shipped any product to Huawei after December 31, 2019. On January 19, 2024, DOJ informed the Company that it has closed such investigation without any charges. The Company continues to cooperate with the DOC in the ongoing civil investigation. DOC has not informed the Company of any specific timeline or schedule under which DOC will complete its review.

We have in the past, and may from time to time in the future, become involved in legal proceedings arising from the normal course of business activities. The semiconductor industry is characterized by frequent claims and litigation, including claims regarding patent and other intellectual property rights as well as improper hiring practices. Irrespective of the validity of such claims, we could incur significant costs in the defense thereof or could suffer adverse effects on its operations.

ITEM 1A. RISK FACTORS

Item 1A of Part I of our Annual Report on Form 10-K for the year ended June 30, 2023, filed with the SEC on August 29, 2023, contains risk factors identified by the Company. There have been no material changes to the risk factors we previously disclosed in our filings with the SEC. Our operations could also be affected by additional factors that are not presently known to us or by factors that we currently consider immaterial to our business.

47

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not applicable.

48

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None

49

ITEM 6. EXHIBITS

31.1	Certification of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation
101.DEF	Inline XBRL Taxonomy Extension Definition
101.LAB	Inline XBRL Taxonomy Extension Labels
101.PRE	Inline XBRL Taxonomy Extension Presentation
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

50

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

May 8, 2024

ALPHA AND OMEGA SEMICONDUCTOR LIMITED
By:	/s/  YIFAN LIANG
	Yifan Liang
	Chief Financial Officer and Corporate Secretary
	(Principal Financial Officer)

51

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14(a) and 15d-14(a), AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Stephen C. Chang, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Alpha and Omega Semiconductor Limited (the "registrant");

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 8, 2024

/s/    Stephen C. Chang   

Stephen C. Chang

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

SECURITIES EXCHANGE ACT RULES 13a-14(a) and 15d-14(a), AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Yifan Liang, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Alpha and Omega Semiconductor Limited (the "registrant");

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 8, 2024

/s/    Yifan Liang

Yifan Liang

Chief Financial Officer and Corporate Secretary

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Stephen C. Chang, chief executive officer of Alpha and Omega Semiconductor Limited (the "Company"), certify for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge,

a.the Quarterly Report of the Company on Form 10-Q for the fiscal quarter ended March 31, 2024 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

b.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 8, 2024

/s/    Stephen C. Chang    

Stephen C. Chang

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Yifan Liang, chief financial officer of Alpha and Omega Semiconductor Limited (the "Company"), certify for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge,

a.the Quarterly Report of the Company on Form 10-Q for the fiscal quarter ended March 31, 2024 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

b.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 8, 2024

/s/    Yifan Liang

Yifan Liang

Chief Financial Officer and Corporate Secretary

XML

Cover - shares	9 Months Ended
	Mar. 31, 2024	Apr. 30, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-34717
Entity Registrant Name	Alpha and Omega Semiconductor Limited
Entity Incorporation, State or Country Code	D0
Entity Tax Identification Number	77-0553536
Entity Address, Address Line One	Clarendon House
Entity Address, Address Line Two	2 Church Street
Entity Address, City or Town	Hamilton
Entity Address, Postal Zip Code	HM 11
Entity Address, Country	BM
City Area Code	408
Local Phone Number	830-9742
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Shares
Trading Symbol	AOSL
Security Exchange Name	NASDAQ
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		28,701,746
Entity Central Index Key	0001387467
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Current assets:
Cash and cash equivalents	$ 174,387	$ 195,188
Restricted cash	208	415
Accounts receivable, net	13,254	22,420
Inventories	198,098	183,247
Other current assets	8,604	22,666
Total current assets	394,551	423,936
Property, plant and equipment, net	339,515	357,831
Operating lease right-of-use assets	24,421	24,349
Intangible assets, net	4,328	6,765
Equity method investment	359,244	366,617
Deferred income tax assets	499	536
Other long-term assets	31,491	19,703
Total assets	1,154,049	1,199,737
Current liabilities:
Accrued liabilities	73,587	79,533
Income taxes payable	4,490	5,546
Short-term debt	11,584	11,434
Deferred revenue	7,664	8,073
Finance lease liabilities	917	867
Operating lease liabilities	4,909	4,383
Total current liabilities	159,939	172,561
Long-term debt	29,653	38,360
Income taxes payable - long-term	2,978	2,817
Deferred income tax liabilities	26,337	27,283
Finance lease liabilities - long-term	2,522	3,216
Operating lease liabilities - long-term	20,099	20,544
Other long-term liabilities	23,584	51,037
Total liabilities	265,112	315,818
Commitments and contingencies (Note 12)
Preferred shares, par value $0.002 per share:
Authorized: 10,000 shares; issued and outstanding: none at March 31, 2024 and June 30, 2023	0	0
Common shares, par value $0.002 per share:
Authorized: 100,000 shares; issued and outstanding: 35,836 shares and 28,697 shares, respectively at March 31, 2024 and 34,811 shares and 27,654 shares, respectively at June 30, 2023	72	70
Treasury shares at cost: 7,139 shares at March 31, 2024 and 7,157 shares at June 30, 2023	(79,220)	(79,365)
Additional paid-in capital	345,413	329,034
Accumulated other comprehensive loss	(11,125)	(8,111)
Retained earnings	633,797	642,291
Total Alpha and Omega Semiconductor Limited shareholder's equity	888,937	883,919
Total liabilities and shareholders' equity	1,154,049	1,199,737
Related Party
Current liabilities:
Accounts payable	14,275	11,950
Nonrelated Party
Current liabilities:
Accounts payable	$ 42,513	$ 50,775

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2024	Jun. 30, 2023
Preferred stock, par value (in dollars per share)	$ 0.002	$ 0.002
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common shares, par value (in dollars per share)	$ 0.002	$ 0.002
Common shares, authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	35,836,000	34,811,000
Common stock, shares outstanding (in shares)	28,697,000	27,654,000
Treasury shares (in shares)	7,139,000	7,157,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 150,060	$ 132,560	$ 495,978	$ 529,796
Cost of goods sold	114,505	101,774	365,497	374,841
Gross profit	35,555	30,786	130,481	154,955
Operating expenses
Research and development	23,095	22,578	68,127	65,435
Selling, general and administrative	22,964	22,610	64,611	69,603
Total operating expenses	46,059	45,188	132,738	135,038
Operating income (loss)	(10,504)	(14,402)	(2,257)	19,917
Other income (loss), net	308	(513)	(138)	(1,432)
Interest income (expense), net	271	5	774	(1,000)
Net income including noncontrolling interest	(9,925)	(14,910)	(1,621)	17,485
Income tax expense	611	2,517	2,643	5,550
Net income (loss) before income (loss) from equity method investment	(10,536)	(17,427)	(4,264)	11,935
Equity method investment income (loss) from equity investee	(676)	(1,480)	(4,085)	1,533
Net income (loss) including noncontrolling interest	$ (11,212)	$ (18,907)	$ (8,349)	$ 13,468
Net income (loss) per common share
Basic (in dollars per share)	$ (0.39)	$ (0.68)	$ (0.30)	$ 0.49
Diluted (in dollars per share)	$ (0.39)	$ (0.68)	$ (0.30)	$ 0.46
Weighted average number of common shares used to compute net income (loss) per share
Basic (in shares)	28,433	27,710	28,022	27,537
Diluted (in shares)	28,433	27,710	28,022	29,576

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss) including noncontrolling interest	$ (11,212)	$ (18,907)	$ (8,349)	$ 13,468
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	2,812	3,748	(3,014)	(10,236)
Comprehensive income (loss)	$ (8,400)	$ (15,159)	$ (11,363)	$ 3,232

XML

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Total AOS Shareholders' Equity	Common Shares	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning balance at Jun. 30, 2022		$ 854,093	$ 68	$ (66,000)	$ 288,951	$ 1,080	$ 629,994
Beginning balance ( in shares) at Jun. 30, 2022			33,988
Beginning balance (in shares) at Jun. 30, 2022				6,617
Increase (Decrease) in Stockholders' Equity
Exercise of common stock options and release of restricted stock units		551			550
Exercise of common stock options and release of restricted stock units (in shares)			683
Exercise of common stock options and release of restricted stock units (in shares)			1
Reissuance of treasury stock upon exercise of common stock options and release of RSUs				$ 60			(60)
Reissuance of treasury stock upon exercise of common stock options and release of RSUs (in shares)				7
Withholding tax on restricted stock units		(6,152)			(6,152)
Withholding tax on restricted stock units (in shares)			(233)
Issuance of shares under ESPP		4,080			4,080
Issuance of shares under ESPP (in shares)			137
Repurchase of common shares under shares repurchase program		(2,665)		$ (2,665)
Share-based compensation		34,119			34,119
Net loss	$ 13,468	13,468					13,468
Net income (loss) including noncontrolling interest	13,468
Cumulative translation adjustment		(10,236)				(10,236)
Foreign currency translation adjustment	(10,236)
Ending balance at Mar. 31, 2023		887,258	$ 69	$ (68,605)	321,548	(9,156)	643,402
Ending balance ( in shares) at Mar. 31, 2023			34,575
Ending balance (in shares) at Mar. 31, 2023				6,717
Increase (Decrease) in Stockholders' Equity
Treasury Stock, Shares, Acquired				(107)
Beginning balance at Dec. 31, 2022		899,674	$ 68	$ (65,990)	316,141	(12,904)	662,359
Beginning balance ( in shares) at Dec. 31, 2022			34,181	6,616
Increase (Decrease) in Stockholders' Equity
Exercise of common stock options and release of restricted stock units		532			531
Exercise of common stock options and release of restricted stock units (in shares)			611
Exercise of common stock options and release of restricted stock units (in shares)			1
Reissuance of treasury stock upon exercise of common stock options and release of RSUs				$ 50			(50)
Reissuance of treasury stock upon exercise of common stock options and release of RSUs (in shares)				6
Withholding tax on restricted stock units		(5,556)			(5,556)
Withholding tax on restricted stock units (in shares)			(217)
Repurchase of common shares under shares repurchase program		(2,665)		$ (2,665)
Share-based compensation		10,432			10,432
Net loss	(18,907)	(18,907)					(18,907)
Net income (loss) including noncontrolling interest	(18,907)
Cumulative translation adjustment		3,748				3,748
Foreign currency translation adjustment	3,748
Ending balance at Mar. 31, 2023		887,258	$ 69	$ (68,605)	321,548	(9,156)	643,402
Ending balance ( in shares) at Mar. 31, 2023			34,575
Ending balance (in shares) at Mar. 31, 2023				6,717
Increase (Decrease) in Stockholders' Equity
Treasury Stock, Shares, Acquired				(107)
Beginning balance at Jun. 30, 2023	$ 883,919	883,919	$ 70	$ (79,365)	329,034	(8,111)	642,291
Beginning balance ( in shares) at Jun. 30, 2023	34,811		34,811
Beginning balance (in shares) at Jun. 30, 2023	7,157			7,157
Increase (Decrease) in Stockholders' Equity
Exercise of common stock options and release of restricted stock units		2,227			2,225
Exercise of common stock options and release of restricted stock units (in shares)			1,156
Exercise of common stock options and release of restricted stock units (in shares)			2
Reissuance of treasury stock upon exercise of common stock options and release of RSUs				$ 145			(145)
Reissuance of treasury stock upon exercise of common stock options and release of RSUs (in shares)				18
Withholding tax on restricted stock units		(7,343)			(7,343)
Withholding tax on restricted stock units (in shares)			(308)
Issuance of shares under ESPP		3,423			3,423
Issuance of shares under ESPP (in shares)			177
Share-based compensation		18,074			18,074
Net loss	$ (8,349)	(8,349)					(8,349)
Net income (loss) including noncontrolling interest	(8,349)
Cumulative translation adjustment		(3,014)				(3,014)
Foreign currency translation adjustment	(3,014)
Ending balance at Mar. 31, 2024	$ 888,937	888,937	$ 72	$ (79,220)	345,413	(11,125)	633,797
Ending balance ( in shares) at Mar. 31, 2024	35,836		35,836
Ending balance (in shares) at Mar. 31, 2024	7,139			7,139
Beginning balance at Dec. 31, 2023		894,558	$ 70	$ (79,343)	342,636	(13,937)	645,132
Beginning balance ( in shares) at Dec. 31, 2023			35,205
Beginning balance (in shares) at Dec. 31, 2023				7,154
Increase (Decrease) in Stockholders' Equity
Exercise of common stock options and release of restricted stock units		1,055			1,053
Exercise of common stock options and release of restricted stock units (in shares)			918
Exercise of common stock options and release of restricted stock units (in shares)			2
Reissuance of treasury stock upon exercise of common stock options and release of RSUs				$ 123			(123)
Reissuance of treasury stock upon exercise of common stock options and release of RSUs (in shares)				15
Withholding tax on restricted stock units		(6,741)			(6,741)
Withholding tax on restricted stock units (in shares)			(287)
Share-based compensation		8,465			8,465
Net loss	$ (11,212)	(11,212)					(11,212)
Net income (loss) including noncontrolling interest	(11,212)
Cumulative translation adjustment		2,812				2,812
Foreign currency translation adjustment	2,812
Ending balance at Mar. 31, 2024	$ 888,937	$ 888,937	$ 72	$ (79,220)	$ 345,413	$ (11,125)	$ 633,797
Ending balance ( in shares) at Mar. 31, 2024	35,836		35,836
Ending balance (in shares) at Mar. 31, 2024	7,139			7,139

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net income (loss) including noncontrolling interest	$ (8,349)	$ 13,468
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	39,849	31,162
Equity method investment income (loss) from equity investee	4,085	(1,533)
Share-based compensation expense	18,074	34,119
Deferred income taxes, net	(910)	(962)
Loss on disposal of property and equipment	88	387
Changes in operating assets and liabilities
Accounts receivable	9,166	46,247
Inventories	(14,851)	(21,744)
Other current and long-term assets	3,637	(7,824)
Accounts payable	(4,303)	(21,581)
Net payable, equity investee	2,325	(10,595)
Income taxes payable	(895)	2,506
Increase (decrease) in deferred revenue	(409)	14,370
Accrued and other liabilities	(28,916)	(29,366)
Net cash provided by operating activities	18,591	48,654
Cash flows from investing activities
Purchases of property and equipment	(29,759)	(91,261)
Proceeds from sale of property and equipment	357	27
Government grant related to equipment	809	631
Net cash used in investing activities	(28,593)	(90,603)
Cash flows from financing activities
Withholding tax on restricted stock units	(7,343)	(6,152)
Proceeds from exercise of stock options and ESPP	5,650	4,631
Proceeds from borrowings	0	8,632
Payment for repurchases of common shares	0	(2,665)
Repayments of borrowings	(8,586)	(10,260)
Principal payments on finance leases	(644)	(603)
Net cash used in financing activities	(10,923)	(6,417)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(83)	(121)
Net decrease in cash, cash equivalents and restricted cash	(21,008)	(48,487)
Cash, cash equivalents and restricted cash at beginning of period	195,603	314,651
Cash, cash equivalents and restricted cash at end of period	174,595	266,164
Supplemental disclosures of non-cash investing and financing information:
Property and equipment purchased but not yet paid	3,906	17,298
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	174,387	265,946
Restricted cash	208	218
Total cash, cash equivalents, and restricted cash	$ 174,595	$ 266,164

XML

The Company and Significant Accounting Policies

Jan. 26, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Significant Accounting Policies

The Company and Significant Accounting Policies

The Company

Alpha and Omega Semiconductor Limited and its subsidiaries (the “Company”, “AOS”, “we” or “us”) design, develop and supply a broad range of power semiconductors. The Company's portfolio of products targets high-volume applications, including personal and portable computers, graphic cards, flat panel TVs, home appliances, smart phones, battery packs, quick chargers, home appliances, consumer and industrial motor controls and power supplies for TVs, computers, servers and telecommunications equipment. The Company conducts its operations primarily in the United States of America (“USA”), Hong Kong, China, and South Korea.

Basis of Preparation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission Regulation S-X, as amended. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included in the interim periods. Operating results for the nine months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2024 or any other interim period. The consolidated balance sheet at June 30, 2023 is derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023.

Joint Venture

On March 29, 2016, the Company entered into a joint venture contract (the “JV Agreement”) with two investment funds owned by the Municipality of Chongqing (the “Chongqing Funds”), pursuant to which the Company and the Chongqing Funds formed a joint venture, (the “JV Company”), for the purpose of constructing and operating a power semiconductor packaging, testing and 12-inch wafer fabrication facility in the Liangjiang New Area of Chongqing, China (the “JV Transaction”). Prior to December 1, 2021, the JV Company was accounted for under the provisions of the consolidation guidance since the Company had controlling financial interest. As of December 2, 2021, the Company ceased having control over the JV Company. Therefore, the Company deconsolidated the JV Company as of that date. Subsequently, the Company has accounted for its investment in the JV Company using the equity method of accounting. As of June 30, 2023, the percentage of outstanding JV equity interest beneficially owned by the Company was reduced to 42.2%. In February 2024, the JV Company repurchased certain shares that were previously issued to employees under the employee equity incentive plan for $5.4 million, which

increased the Company’s percentage of equity ownership in the JV Company by 0.54%. As of March 31, 2024, the percentage of outstanding JV equity interest beneficially owned by the Company was 42.8%.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. To the extent there are material differences between these estimates and actual results, the Company's consolidated financial statements will be affected. On an ongoing basis, the Company evaluates the estimates, judgments and assumptions including those related to stock rotation returns, price adjustments, allowance for doubtful accounts, inventory reserves, warranty accrual, income taxes, leases, share-based compensation, recoverability of and useful lives for property, plant and equipment and intangible assets.

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities and long-term operating lease liabilities on the Company's

consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and long-term finance leases liabilities on the consolidated balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company determined its incremental borrowing rate based on the information available at the lease commencement date. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Operating lease expense is generally recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the operating lease ROU asset and lease liability calculation. The Company does not record leases on the consolidated balance sheet with a term of one year or less. The Company elected to combine its lease and non-lease components as a single lease component for all asset classes.

Revenue recognition

The Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, a performance obligation is satisfied. The Company recognizes product revenue at a point in time when product is shipped to the customer, as determined by the agreed upon shipping terms, net of estimated stock rotation returns and price adjustments that it expects to provide to certain distributors. The Company presents revenue net of sales taxes and any similar assessments. Our standard payment terms range from 30 to 60 days.

The Company sells its products primarily to distributors, who in turn sell the products globally to various end customers. The Company allows stock rotation returns from certain distributors. Stock rotation returns are governed by contract and are limited to a specified percentage of the monetary value of products purchased by distributors during a specified period. The Company records an allowance for stock rotation returns based on historical returns, current expectations, and individual distributor agreements. The Company also provides special pricing to certain distributors, primarily based on volume, to encourage resale of the Company's products. Allowance for price adjustments is recorded against accounts receivable and the provision for stock rotation rights is included in accrued liabilities on the consolidated balance sheets.

The Company's performance obligations relate to contracts with a duration of less than one year. The Company elected to apply the practical expedient provided in ASC 606, “Revenue from Contracts with Customers”. Therefore, the Company is not required to disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period.

The Company recognizes the incremental direct costs of obtaining a contract, which consist of sales commissions, when control over the products they relate to transfers to the customer. Applying the practical expedient, the Company recognizes commissions as expense when incurred, as the amortization period of the commission asset the Company would have otherwise recognized is less than one year.

Packaging and testing services revenue is recognized at a point in time upon shipment of serviced products to the customer.

License and Development Revenue Recognition

In February 2023, the Company entered into a license agreement with a customer, pursuant to which the Company agreed to license its proprietary Silicon Carbide (SiC) technology to the customer and engineering and development services for 24 months for a total fee of $45.0 million, consisting of fees of $18.0 million, $6.8 million and $9.0 million paid to the Company in March 2023, July 2023 and February 2024, respectively, with the remaining amount to be paid upon the achievement of specified engineering services and product milestones. The license and development fee is determined to be one performance obligation and is recognized over the 24 months during which the Company performs the engineering and development services. The Company uses the input method to measure progress, which method represents a faithful depiction of the transfer of services. During the three and nine months ended March 31, 2024, the Company recorded license and development revenue of $5.1 million and $16.2 million, respectively. During the three and nine months ended March 31, 2023, the Company recorded $3.6 million of license and development revenue. The amount of contract liability is recorded as deferred revenue on the consolidated balance sheets. As of March 31, 2024, the Company had recorded a total of $26.1 million of license and development revenue. In addition, the Company also entered an accompanying supply agreement to provide limited wafer supply to the customer.

Share-based Compensation Expense

The Company maintains an equity-settled, share-based compensation plan to grant restricted share units and stock options. The Company recognizes expense related to share-based compensation awards that are ultimately expected to vest based on estimated fair values on the date of grant. The fair value of restricted share units is based on the fair value of the Company's common share on the date of grant. For restricted stock awards subject to market conditions, the fair value of each restricted stock award is estimated at the date of grant using the Monte-Carlo pricing model. The fair value of stock options is estimated on the date of grant using the Black-Scholes option valuation model. Share-based compensation expense is recognized on the accelerated attribution basis over the requisite service period of the award, which generally equals the vesting period. The Employee Share Purchase Plan (the “ESPP”) is accounted for at fair value on the date of grant using the Black-Scholes option valuation model.

Restricted Cash

The Company maintains restricted cash in connection with cash balances temporarily restricted for regular business operations. These balances have been excluded from the Company’s cash and cash equivalents balance and are classified as restricted cash in the Company’s Condensed Consolidated Balance Sheets. As of March 31, 2024 and June 30, 2023, the amount of restricted cash was $0.2 million and $0.4 million, respectively.

Equity method investment

The Company uses the equity method of accounting when it has the ability to exercise significant influence, but not control, as determined in accordance with generally accepted accounting principles, over the operating and financial policies of the investee. Effective December 1, 2021, the Company reduced its equity interest in the JV Company and no longer controls the JV Company. As a result, beginning December 2, 2021, the Company records its investment under the equity method of accounting. Since the Company is unable to obtain accurate financial information from the JV Company in a timely manner, the Company records its share of earnings or losses of such affiliate on a one quarter lag. The Company discloses and recognizes intervening events at the JV Company in the lag period that could materially affect its consolidated financial statements, if applicable.

The Company records its interest in the net earnings of the equity method investee, along with adjustments for unrealized profits or losses on intra-entity transactions and amortization of basis differences, within earnings or loss from equity interests in the Consolidated Statements of Income (loss). Profits or losses related to intra-entity sales with the equity method investee are eliminated until realized by the investor and investee. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are generally amortized over the lives of the related assets that gave rise to them. Equity method goodwill is not amortized or tested for impairment; instead the equity method investment is tested for impairment. The Company reviews for impairment whenever factors indicate that the carrying amount of the investment might not be recoverable. In such a case, the decrease in value is recognized in the period the impairment occurs in the Condensed Consolidated Statements of Income (loss).

Valuation of inventories

The Company carries inventories at the lower of cost (determined on a first-in, first-out basis) or net realizable value. Cost primarily consists of semiconductor wafers and raw materials, labor, depreciation expenses and other manufacturing expenses and overhead, and packaging and testing fees paid to third parties if subcontractors are used. Valuation of inventories is based on its periodic review of inventory quantities on hand as compared with its sales forecasts, historical usage, aging of inventories, production yield levels and current product selling prices. If actual market conditions are less favorable than those forecasted by the Company, additional future inventory write-downs may be required that could adversely affect its operating results. Adjustments to inventory, once established are not reversed until the related inventory has been sold or scrapped. If actual market conditions are more favorable than expected and the products that have previously been written down are sold, our gross margin would be favorably impacted.

Fair Value of Financial Instruments

The fair value of cash equivalents is categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short-term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts

receivable and accounts payable approximate their carrying values due to their short-term maturities. The carrying value of the Company's debt is considered a reasonable estimate of fair value which is estimated by considering the current rates available to the Company for debt of the same remaining maturities, structure, credit risk and terms of the debts.

Government Grants

The Company occasionally receives government grants that provide financial assistance for certain eligible expenditures in China. These grants include reimbursements on interest expense on bank borrowings, payroll tax credits, credit for property, plant and equipment in a particular geographical location, employment credits, as well as business expansion credits. Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attaching to it, and that the grant will be received. The Company records such grants either as a reduction of the related expense, a reduction of the cost of the related asset, or as other income depending upon the nature of the grant. As a result of such grants, during the three and nine months ended March 31, 2024, the Company reduced property, plant and equipment by $0.4 million and $0.8 million, respectively. During the three and nine months ended March 31, 2023, the Company reduced property, plant and equipment by nil and $0.6 million, and operating expenses by $0.0 million and $0.1 million, respectively.

Accounting for income taxes

Income tax expense or benefit is based on income or loss before income taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts.

The Company is subject to income taxes in a number of jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company establishes accruals for certain tax contingencies based on estimates of whether additional taxes may be due. While the final tax outcome of these matters may differ from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

The Company is subject to income tax expense or benefit based upon pre-tax income or loss reported in the consolidated statements of income (loss) and the provisions of currently enacted tax laws. The parent company is incorporated under the laws of Bermuda and is subject to Bermuda law with respect to taxation. Under current Bermuda law, the Company is not subject to any income or capital gains taxes in Bermuda. As we have previously disclosed, the Government of Bermuda announced in December 2023 that it enacted the Corporate Income Tax Act 2023, potentially imposing a 15% corporate income tax (CIT) on Bermuda companies that are within the scope of the CIT, that will be effective for tax years beginning on or after January 1, 2025. In particular, the CIT applies to multinational companies with annual revenue of 750 million euros or more in the consolidated financial statements of the ultimate parent entity for at least two of the four fiscal years immediately preceding the fiscal year when the CIT may apply.

The Company is not in a position to determine whether the annual revenues may meet and/or cross the 750 million Euro threshold for at least two of the four fiscal years immediately preceding the fiscal year when CIT may apply. The Company continues to monitor and assess if and when it may be within the scope of the CIT. If we become subject to the Bermuda CIT, we may be subject to additional income taxes, which may adversely affect our financial position, results of operations and our overall business.

Significant management judgment is also required in determining whether deferred tax assets will be realized in full or in part. When it is more likely than not that all or some portion of specific deferred tax assets such as net operating losses or research and development tax credit carryforwards will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that cannot be realized. The Company considers all available positive and negative evidence on a jurisdiction-by-jurisdiction basis when assessing whether it is more likely than not that deferred tax assets are recoverable. The Company considers evidence such as our past operating results, the existence of cumulative losses in recent years and our forecast of future taxable income.

The Financial Accounting Standards Board (FASB), issued guidance which clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the

applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely to be realized upon ultimate settlement. Although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model, the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management. If the ultimate resolution of tax uncertainties is different from what is currently estimated, a material impact on income tax expense could result.

The Company's provision for income taxes is subject to volatility and could be adversely impacted by changes in earnings or tax laws and regulations in various jurisdictions. The Company is subject to the continuous examination of our income tax returns by the Internal Revenue Service and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of changes to reserves, as well as the related net interest and penalties.

Long-lived Assets

The Company reviews all long-lived assets whenever events or changes in circumstance indicate that these assets may not be recoverable. When evaluating long-lived assets, if the Company concludes that the estimated undiscounted cash flows attributable to the assets are less than their carrying value, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values, which could adversely affect its results of operations.

Comprehensive Income

Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income consists of cumulative foreign currency translation adjustments. Total comprehensive income is presented in the Condensed Consolidated Statements of Comprehensive Income.

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

None

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Equity Method Investment in Equity Investee

9 Months Ended

Mar. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Equity Method Investment in Equity Investee

Equity Method Investment in Equity Investee

On December 1, 2021 (the “Effective Date”), Alpha & Omega Semiconductor (Shanghai) Ltd. (“AOS SH”) and Agape Package Manufacturing (Shanghai) Limited (“APM SH” and, together with AOS SH, the “Sellers”), each a wholly-owned subsidiary of the Company, entered into a share transfer agreement ("STA") with a third-party investor to sell a portion of the Company's equity interest in the JV Company which consists of a power semiconductor packaging, testing and 12-inch wafer fabrication facility in Chongqing, China (the “Transaction”). The Transaction closed on December 2, 2021 (the “Closing Date”), which reduced the Company’s equity interest in the JV Company from 50.9% to 48.8%. Also, the Company’s right to designate directors on the board of JV Company was reduced to three (3) out of seven (7) directors, from four (4) directors prior to the Transaction. As a result of the Transaction and other factors, the Company no longer has a controlling financial interest in the JV Company and has determined that the JV Company was deconsolidated from the Company’s Consolidated Financial Statements effective as of the Closing Date.

On December 24, 2021, the Company entered into a share transfer agreement with another third-party investor, pursuant to which the Company sold to this investor 1.1% of outstanding equity interest held by the Company in the JV Company. In addition, the JV Company adopted an employee equity incentive plan and issued an equity interest equivalent to 3.99% of the JV Company in exchange to cash. As a result of these two transactions, the Company owned 45.8% of the equity interest in the JV Company as of December 31, 2021.

On January 26, 2022, the JV Company completed a financing transaction pursuant to a corporate investment agreement (the “Investment Agreement”) between the JV Company and certain third-party investors (the “New Investors”). Under the Investment Agreement, the New Investors purchased newly issued equity interest of the JV Company, representing approximately 7.82% of post-transaction outstanding equity interests of the JV Company, for a total purchase price of RMB 509 million (or approximately USD 80 million based on the currency exchange rate as of January 26, 2022) (the “Investment”). Following the closing of the Investment and as of June 30, 2022, the percentage of outstanding JV equity interest beneficially owned by the Company was reduced to 42.2%.

In February 2024, the JV Company repurchased certain shares that were previously issued to employees under the employee equity incentive plan for $5.4 million, which increased the Company’s percentage of equity ownership in the JV Company by 0.54%. As of March 31, 2024, the percentage of outstanding JV equity interest beneficially owned by the Company was 42.8%.

The Company accounts for its investment in the JV Company as an equity method investment and reports its equity in earnings or loss of the JV Company on a three-month lag due to an inability to timely obtain financial information of the JV Company. During the three and nine months ended March 31, 2024, the Company recorded a $0.7 million loss and $4.1 million loss of its equity share of the JV Company, respectively, using lag reporting. During the three and nine months ended March 31, 2023, the Company recorded $1.5 million in loss and a $1.5 million income of its equity in income of the JV Company, respectively, using lag reporting.

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Related Party Transactions

9 Months Ended

Mar. 31, 2024

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

As of March 31, 2024, the Company owned a 42.8% equity interest in the JV Company, which, by definition, is a related party to the Company. The JV Company supplies 12-inch wafers and provides assembly and testing services to AOS. AOS previously sold 8-inch wafers to the JV Company for further assembly and testing services until January 1, 2023, when it changed to consign the 8-inch wafers to the JV Company. Due to the right of offset of receivables and payables with the JV Company, as of March 31, 2024, AOS recorded the net amount of $14.3 million as payable related to equity investee, net, in the Condensed Consolidated Balance Sheet. The purchases by AOS for the three and nine months ended March 31, 2024 were $22.4 million and $80.8 million, respectively, and the sales by AOS for the three and nine months ended March 31, 2024 were $2.6 million and $6.3 million, respectively. The purchases by AOS for the three and nine months ended March 31, 2023 were $20.2 million and $106.1 million, respectively, and the sales by AOS for the three and nine months ended March 31, 2023 were $4.0 million and $34.4 million, respectively.

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Net Income (Loss) Per Common Share Attributable to Alpha and Omega Semiconductor Limited

9 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share Attributable to Alpha and Omega Semiconductor Limited

Net Income (Loss) Per Common Share

The following table presents the calculation of basic and diluted net income (loss) per share attributable to common shareholders:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(in thousands, except per share data)
Numerator:
Net income (loss)	$	(11,212)	$	(18,907)	$	(8,349)	$	13,468
Denominator:
Basic:
Weighted average number of common shares used to compute basic net income (loss) per share	28,433		27,710		28,022		27,537
Diluted:
Weighted average number of common shares used to compute basic net income (loss) per share	28,433		27,710		28,022		27,537
Effect of potentially dilutive securities:
Stock options, RSUs and ESPP shares	—		—		—		2,039
Weighted average number of common shares used to compute diluted net income (loss) per share	28,433		27,710		28,022		29,576
Net income (loss) per share:
Basic	$	(0.39)	$	(0.68)	$	(0.30)	$	0.49
Diluted	$	(0.39)	$	(0.68)	$	(0.30)	$	0.46

The following potential dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive:

	Three Months Ended March 31,		Nine Months Ended March 31,
	2024	2023	2024	2023
	(in thousands)		(in thousands)
Employee stock options and RSUs	1,688	3,152	2,242	281
ESPP	1,008	767	1,046	279
Total potential dilutive securities	2,696	3,919	3,288	560

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Concentration of Credit Risk and Significant Customers

9 Months Ended

Mar. 31, 2024

Risks and Uncertainties [Abstract]

Concentration of Credit Risk and Significant Customers

Concentration of Credit Risk and Significant Customers

The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application and review of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers.

Credit sales, which are mainly on credit terms of 30 to 60 days, are only made to customers who meet the Company's credit requirements, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its trade accounts receivable to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant bad debt write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, where available.

Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts:

	Three Months Ended March 31,				Nine Months Ended March 31,
Percentage of revenue	2024		2023		2024		2023
Customer A	25.0	%	21.0	%	26.1	%	21.7	%
Customer B	46.4	%	28.7	%	44.8	%	35.5	%
Customer D	*		17.9	%	*		14.1	%

	March 31, 2024		June 30, 2023
Percentage of accounts receivable
Customer A	*		15.3	%
Customer B	*		17.6	%
Customer C	23.9	%	13.3	%
Customer D	30.6	%	30.9	%

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Balance Sheet Components

9 Months Ended

Mar. 31, 2024

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Balance Sheet Components

Accounts receivable, net:

	March 31, 2024		June 30, 2023
	(in thousands)
Accounts receivable	$	62,565	$	62,426
Less: Allowance for price adjustments	(49,281)		(39,976)
Less: Allowance for doubtful accounts	(30)		(30)
Accounts receivable, net	$	13,254	$	22,420

Inventories:

	March 31, 2024		June 30, 2023
	(in thousands)
Raw materials	$	83,535	$	86,620
Work-in-process	88,808		69,426
Finished goods	25,755		27,201
	$	198,098	$	183,247

Other current assets:

	March 31, 2024		June 30, 2023
	(in thousands)
Value-added tax receivable	$	280	$	275
Other prepaid expenses	2,911		3,863
Prepaid insurance	693		4,162
Prepaid maintenance	1,496		1,697
Prepayment to supplier	115		10,689
Prepaid income tax	2,326		707
Interest receivable	364		135
Other receivables	419		1,138
	$	8,604	$	22,666

Property, plant and equipment, net:

	March 31, 2024		June 30, 2023
	(in thousands)
Land	$	4,877	$	4,877
Building and building improvements	26,970		26,478
Manufacturing machinery and equipment	415,598		398,757
Equipment and tooling	35,553		32,737
Computer equipment and software	51,870		49,890
Office furniture and equipment	3,264		3,087
Leasehold improvements	41,521		38,787
	579,653		554,613
Less: accumulated depreciation and amortization	(308,439)		(272,503)
	271,214		282,110
Equipment and construction in progress	68,301		75,721
Property, plant and equipment, net	$	339,515	$	357,831

Intangible assets, net:

	March 31, 2024		June 30, 2023
	(in thousands)
Patents and technology rights	$	18,037	$	18,037
Trade name	268		268
Customer relationships	1,150		1,150
	19,455		19,455
Less: accumulated amortization	(15,396)		(12,959)
	4,059		6,496
Goodwill	269		269
Intangible assets, net	$	4,328	$	6,765

Estimated future minimum amortization expense of intangible assets is as follows (in thousands):

Year ending June 30,
2024 (Remaining)	$	812
2025	3,247
	$	4,059

Other long-term assets:

	March 31, 2024		June 30, 2023
	(in thousands)
Prepayments for property and equipment	$	3,229	$	1,717
Investment in a privately held company	100		100
Customs deposit	651		931
Deposit with supplier	23,342		12,290
Other long-term deposits	37		37
Office leases deposits	1,347		1,274
Other	2,785		3,354
	$	31,491	$	19,703

Accrued liabilities:

	March 31, 2024		June 30, 2023
	(in thousands)
Accrued compensation and benefits	$	15,407	$	15,627
Warranty accrual	2,282		1,674
Stock rotation accrual	4,678		5,588
Accrued professional fees	2,188		2,458
Accrued inventory	565		1,597
Accrued facilities related expenses	2,117		2,327
Accrued property, plant and equipment	5,756		6,402
Other accrued expenses	4,138		4,401
Customer deposits	33,085		38,082
ESPP payable	3,371		1,377
	$	73,587	$	79,533

Short-term customer deposits are payments received from customers for securing future product shipments. As of March 31, 2024, $10.0 million were from Customer A, $8.9 million were from Customer B, and $14.2 million were from other customers. As of June 30, 2023, $13.5 million were from Customer A, $9.2 million were from Customer B, and $15.4 million were from other customers.

The activities in the warranty accrual, included in accrued liabilities, are as follows:

	Nine Months Ended March 31,
	2024		2023
	(in thousands)
Beginning balance	$	1,674	$	2,650
Additions	773		2,915
Utilization	(165)		(1,750)
Ending balance	$	2,282	$	3,815

The activities in the stock rotation accrual, included in accrued liabilities, are as follows:

	Nine Months Ended March 31,
	2024		2023
	(in thousands)
Beginning balance	$	5,588	$	4,798
Additions	7,849		9,187
Utilization	(8,759)		(9,904)
Ending balance	$	4,678	$	4,081

Other long-term liabilities:

	March 31, 2024		June 30, 2023
	(in thousands)
Customer deposits	$	22,361	$	46,393
Computer software liabilities	1,223		4,644
Other long-term liabilities	$	23,584	$	51,037

Customer deposits are payments received from customers for securing future product shipments. As of March 31, 2024, $12.0 million were from Customer A, $3.0 million were from Customer B, and $7.4 million were from other customers. As of June 30, 2023, $21.0 million were from Customer A, $11.7 million were from Customer B, and $13.7 million were from other customers.

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Bank Borrowing Bank Borrowing

9 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Bank Borrowing

Bank Borrowings

Short-term borrowings

In March 2024, one of the Company's subsidiaries in China entered into a line of credit facility with Bank of Communications Limited in China. The purpose of the credit facility is to provide working capital borrowings. The Company could borrow up to approximately RMB 140 million or $19.4 million based on currency exchange rate between RMB and U.S. Dollar on March 31, 2024 with a maturity date of March 15, 2025. As of March 31, 2024, there was no outstanding balance for this loan.

In December 2023, one of the Company's subsidiaries in China entered into a line of credit facility with Industrial and Commercial Bank of China. The purpose of the credit facility was to provide working capital borrowings. The Company could borrow up to approximately RMB 72.0 million, or $10.2 million based on currency exchange rate between RMB and U.S. Dollar on December 31, 2023, with a maturity date of December 31, 2024. As of March 31, 2024, there was no outstanding balance for this loan.

In September 2023, one of the Company's subsidiaries in China entered into a line of credit facility with China Construction Bank. The purpose of the credit facility is to provide working capital borrowings. The Company could borrow up to approximately RMB 50 million or $6.8 million based on currency exchange rate between RMB and U.S. Dollar on September 30, 2023 with a maturity date of September 8, 2025. As of March 31, 2024, there was no outstanding balance for this loan.

Accounts Receivable Factoring Agreement

On August 9, 2019, one of the Company's wholly-owned subsidiaries (the “Borrower”) entered into a factoring agreement with the Hongkong and Shanghai Banking Corporation Limited (“HSBC”), whereby the Borrower assigns certain of its accounts receivable with recourse. This factoring agreement allows the Borrower to borrow up to 70% of the net amount of its eligible accounts receivable of the Borrower with a maximum amount of $30.0 million. The interest rate is based on the Secured Overnight Financing Rate ("SOFR)", plus 2.01% per annum. The Company is the guarantor for this agreement. The Company is accounting for this transaction as a secured borrowing. In addition, any cash held in the restricted bank account controlled by HSBC has a legal right of offset against the borrowing. This agreement, with certain financial covenants required, has no expiration date. On August 11, 2021, the Borrower signed an agreement with HSBC to reduce the borrowing maximum amount to $8.0 million with certain financial covenants required. Other terms remain the same. As of March 31, 2024, the Borrower was in compliance with these covenants. As of March 31, 2024, there was no outstanding balance and the Company had unused credit of approximately $8.0 million.

Debt financing

In September 2021, Jireh Semiconductor Incorporated (“Jireh”), one of the wholly-owned subsidiaries, entered into a financing arrangement agreement with a company (“Lender”) for the lease and purchase of a machinery equipment manufactured by a supplier. This agreement has a 5 years term, after which Jireh has the option to purchase the equipment for $1. The implied interest rate was 4.75% per annum which was adjustable based on every five basis point increase in 60-month U.S. Treasury Notes, until the final installation and acceptance of the equipment. The total purchase price of this equipment was euro 12.0 million. In April 2021, Jireh made a down payment of euro 6.0 million, representing 50% of the total purchase price of the equipment, to the supplier. In June 2022, the equipment was delivered to Jireh after Lender paid 40% of the total purchase price, for euro 4.8 million, to the supplier on behalf of Jireh. In September 2022, Lender paid the remaining 10% payment for the total purchase price and reimbursed Jireh for the 50% down payment, after the installation and configuration of the equipment. The title of the equipment was transferred to Lender following such payment. The agreement was amended with fixed implied interest rate of 7.51% and monthly payment of principal and interest effective in October 2022. Other terms remain the same. In addition, Jireh purchased hardware for the machine under this financing arrangement. The purchase price of this hardware was $0.2 million. The financing arrangement is secured by this equipment and other equipment which had the net book value of $14.0 million as of March 31, 2024. As of March 31, 2024, the outstanding balance of this debt financing was $9.8 million.

Long-term bank borrowings

On August 18, 2021, Jireh entered into a term loan agreement with a financial institution (the "Bank") in an amount up to $45.0 million for the purpose of expanding and upgrading the Company’s fabrication facility located in Oregon. The obligation under the loan agreement is secured by substantially all assets of Jireh and guaranteed by the Company. The agreement has a

5.5 year term and matures on February 16, 2027. Jireh is required to make consecutive quarterly payments of principal and interest. The loan accrues interest based on adjusted SOFR plus the applicable margin based on the outstanding balance of the loan. This agreement contains customary restrictive covenants and includes certain financial covenants that the Company is required to maintain. Jireh drew down $45.0 million on February 16, 2022 with the first payment of principal beginning in October 2022. As of March 31, 2024, Jireh was in compliance with these covenants and the outstanding balance of this loan was $31.5 million.

Maturities of short-term debt and long-term debt were as follows (in thousands):

Year ending June 30,
2024 (Remaining)					$	2,885
2025					11,664
2026					11,871
2027					14,344
2028					536
Total principal					41,300
Less: debt issuance costs					(63)
Total principal, less debt issuance costs					$	41,237
	Short-term Debt		Long-term Debt		Total
Principal amount	$	11,614	$	29,686	$	41,300
Less: debt issuance costs	(30)		(33)		(63)
Total debt, less debt issuance costs	$	11,584	$	29,653	$	41,237

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Leases

9 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

Leases

The Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities and operating lease liabilities - long-term on the Company's Condensed Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the Condensed Consolidated Balance Sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the $5.1 million of a machinery lease financing with a vendor. In September 2022, the lease was amended to make a monthly payment of principal and interest as a fixed amount effective in October 2022. Other terms remain the same. The amendment was accounted for as a debt modification and no gain or loss was recognized. The Company does not record leases on the Condensed Consolidated Balance Sheets with a term of one year or less.

The components of the Company’s operating and finance lease expenses are as follows for the periods presented (in thousands):

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
Operating leases:
Fixed rent expense	$	1,356	$	1,385	$	4,399	$	4,298
Variable rent expense	307		279		819		757
Finance lease:
Amortization of equipment	128		128		385		393
Interest	67		83		214		227
Short-term leases
Short-term lease expenses	41		133		128		300
Total lease expenses	$	1,899	$	2,008	$	5,945	$	5,975

Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate):

	March 31, 2024			June 30, 2023
Operating Leases:
ROU assets associated with operating leases	$	24,421		$	24,349
Finance Lease:
Property, plant and equipment, gross	$	5,133		$	5,133
Accumulated depreciation	(1,042)			(657)
Property, plant and equipment, net	$	4,091		$	4,476
Weighted average remaining lease term (in years)
Operating leases	5.67			6.57
Finance lease	3.50			4.25
Weighted average discount rate
Operating leases	4.91		%	4.67		%
Finance lease	7.51		%	7.51		%

Supplemental cash flow information related to the Company’s operating and finance leases is as follows (in thousands):

	Nine Months Ended March 31,
	2024		2023
Cash paid from amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,804	$	4,418
Operating cash flows from finance lease	$	214	$	227
Financing cash flows from finance lease	$	644	$	603
Non-cash investing and financing information:
Operating lease right-of-use assets obtained in exchange for lease obligations	$	3,954	$	2,859

Future minimum lease payments are as follows as of March 31, 2024 (in thousands):

Year ending June 30,	Operating Leases		Finance Leases
The remainder of fiscal 2024	$	1,532	$	286
2025	5,954		1,144
2026	5,109		1,144
2027	4,188		1,145
2028	3,691		191
Thereafter	8,322		—
Total minimum lease payments	28,796		3,910
Less amount representing interest	(3,788)		(471)
Total lease liabilities	$	25,008	$	3,439

Leases

Leases

The Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities and operating lease liabilities - long-term on the Company's Condensed Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the Condensed Consolidated Balance Sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the $5.1 million of a machinery lease financing with a vendor. In September 2022, the lease was amended to make a monthly payment of principal and interest as a fixed amount effective in October 2022. Other terms remain the same. The amendment was accounted for as a debt modification and no gain or loss was recognized. The Company does not record leases on the Condensed Consolidated Balance Sheets with a term of one year or less.

The components of the Company’s operating and finance lease expenses are as follows for the periods presented (in thousands):

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
Operating leases:
Fixed rent expense	$	1,356	$	1,385	$	4,399	$	4,298
Variable rent expense	307		279		819		757
Finance lease:
Amortization of equipment	128		128		385		393
Interest	67		83		214		227
Short-term leases
Short-term lease expenses	41		133		128		300
Total lease expenses	$	1,899	$	2,008	$	5,945	$	5,975

Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate):

	March 31, 2024			June 30, 2023
Operating Leases:
ROU assets associated with operating leases	$	24,421		$	24,349
Finance Lease:
Property, plant and equipment, gross	$	5,133		$	5,133
Accumulated depreciation	(1,042)			(657)
Property, plant and equipment, net	$	4,091		$	4,476
Weighted average remaining lease term (in years)
Operating leases	5.67			6.57
Finance lease	3.50			4.25
Weighted average discount rate
Operating leases	4.91		%	4.67		%
Finance lease	7.51		%	7.51		%

Supplemental cash flow information related to the Company’s operating and finance leases is as follows (in thousands):

	Nine Months Ended March 31,
	2024		2023
Cash paid from amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,804	$	4,418
Operating cash flows from finance lease	$	214	$	227
Financing cash flows from finance lease	$	644	$	603
Non-cash investing and financing information:
Operating lease right-of-use assets obtained in exchange for lease obligations	$	3,954	$	2,859

Future minimum lease payments are as follows as of March 31, 2024 (in thousands):

Year ending June 30,	Operating Leases		Finance Leases
The remainder of fiscal 2024	$	1,532	$	286
2025	5,954		1,144
2026	5,109		1,144
2027	4,188		1,145
2028	3,691		191
Thereafter	8,322		—
Total minimum lease payments	28,796		3,910
Less amount representing interest	(3,788)		(471)
Total lease liabilities	$	25,008	$	3,439

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Shareholders' Equity and Share-based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Shareholders' Equity and Share-based Compensation

Shareholders' Equity and Share-based Compensation

Share Repurchase

In September 2017, the Board of Directors approved a repurchase program (the “Repurchase Program”) that allowed the Company to repurchase its common shares from the open market pursuant to a pre-established Rule 10b5-1 trading plan or through privately negotiated transactions up to an aggregate of $30.0 million. The amount and timing of any repurchases under the Repurchase Program depend on a number of factors, including but not limited to, the trading price, volume and availability of the Company’s common shares. Shares repurchased under this program are accounted for as treasury shares and the total cost of shares repurchased is recorded as a reduction of shareholders' equity. From time to time, treasury shares may be reissued as part of the Company’s share-based compensation programs. Gains on re-issuance of treasury stock are credited to additional paid-in capital; losses are charged to additional paid-in capital to offset the net gains, if any, from previous sales or re-issuance of treasury stock. Any remaining balance of the losses is charged to retained earnings. As of March 31, 2024, no remaining amount was available under the share repurchase program.

Time-based Restricted Stock Units (“TRSU”)

The following table summarizes the Company's TRSU activities for the nine months ended March 31, 2024:

	Number of Restricted Stock Units	Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Nonvested at June 30, 2023	1,385,065	$	32.48	1.73	$	45,430,132
Granted	641,493	$	22.96
Vested	(475,023)	$	30.31
Forfeited	(32,876)	$	32.35
Nonvested at March 31, 2024	1,518,659	$	29.14	1.85	$	33,471,244

Market-based Restricted Stock Units (“MSU”)

In December 2021, the Company granted 1.0 million market-based restricted stock units ("MSUs") to certain personnel. The number of shares to be earned at the end of performance period was determined based on the Company’s achievement of specified stock prices and revenue thresholds during the performance period from January 1, 2022 to December 31, 2024 as well as the recipients remaining in continuous service with the Company through such period. The MSU vests in four equal annual installments after the end of performance period. The Company estimated the grant date fair values of its MSUs using a Monte-Carlo simulation model. On September 19, 2023, the Compensation Committee of the Board approved a modification of the terms of MSUs to extend the performance period through December 31, 2025, changed the commencement date for the four-year time-based service period January 1, 2025, and reduced the achievement of specified stock prices and revenue thresholds. The fair value of these MSUs was revalued to reflect the change using a Monte-Carlo simulation model with the following assumptions: risk-free interest rate of 4.94%, expected term of 2.28 years, expected volatility of 61.38% and dividend yield of 0%. The Company recognizes the total compensation cost of the modified MSUs beginning on the modification date over the remaining requisite service periods. The Company recorded $1.1 million of expenses for the three months ended March 31, 2024, and a negative $4.0 million of expenses for the nine months ended March 31, 2024 due to a $6.4 million of reversal of the prior recognized expenses. The Company recorded $2.1 million and $6.2 million of expenses for the three and nine months ended March 31, 2023, respectively.

During the quarter ended September 30, 2018, the Company granted 1.3 million MSUs to certain personnel. The number of shares to be earned at the end of performance period is determined based on the Company’s achievement of specified stock prices and revenue thresholds during the performance period from January 1, 2019 to December 31, 2021 as well as the recipients remaining in continuous service with the Company through such period. The MSUs vest in four equal annual installments after the end of the performance period. The Company estimated the grant date fair values of its MSUs using a Monte-Carlo simulation model. On August 31, 2020, the Compensation Committee of the Board approved a modification of the terms of MSU to (i) extend the performance period through December 31, 2022 and (ii) change the commencement date for the four-year time-based service period to January 1, 2023. The fair value of these MSUs was recalculated to reflect the change as of August 31, 2020 and the unrecognized compensation amount was adjusted to reflect the increase in fair value. The Company recorded $0.2 million and $0.8 million of expenses for MSUs during the three and nine months ended March 31, 2024, respectively, and $0.3 million and $3.6 million of expenses for MSUs during the three and nine months ended March 31, 2023.

The following table summarizes the Company's MSUs activities for the nine months ended March 31, 2024:

	Number of Performance-based Restricted Stock Units	Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Nonvested at June 30, 2023	2,108,000	$	25.86	2.96	$	69,142,400
Granted	—	$	—
Vested	(275,000)	$	5.17
Forfeited	(10,000)	$	48.44
Nonvested at March 31, 2024	1,823,000	$	28.86	3.12	$	40,178,920

Performance-based Restricted Stock Units (“PRSUs”)

In March each year since year 2017, the Company granted PRSUs to certain personnel. The number of shares to be earned under the PRSUs is determined based on the level of attainment of predetermined financial goals. The PRSUs vest in four equal annual installments from the first anniversary date after the grant date if certain predetermined financial goals were met. The Company recorded approximately $0.8 million and $2.0 million of expense for these PRSUs during the three and nine months ended March 31, 2024, respectively, and $1.4 million and $4.1 million and for the three and nine months ended March 31, 2023, respectively.

The following table summarizes the Company’s PRSUs activities for the nine months ended March 31, 2024:

	Number of Performance-based Restricted Stock Units	Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Nonvested at June 30, 2023	526,714	$	32.19	1.78	$	17,276,219
Granted	209,250	$	21.55
Vested	(123,632)	$	30.50
Forfeited	(258,957)	$	26.41
Nonvested at March 31, 2024	353,375	$	30.71	1.98	$	7,788,385

Stock Options

The Company did not grant any stock options during the nine months ended March 31, 2024 and 2023. The following table summarizes the Company's stock option activities for the nine months ended March 31, 2024:

				Weighted
		Weighted		Average
		Average		Remaining
	Number of	Exercise Price		Contractual	Aggregate
	Shares	Per Share		Term (in years)	Intrinsic Value
Outstanding at June 30, 2023	319,375	$	7.53	0.72	$	8,071,631
Exercised	(299,375)	$	7.44		$	5,406,850
Outstanding at March 31, 2024	20,000	$	8.86	0.30	$	263,600
Options vested and expected to vest	20,000	$	8.86	0.30	$	263,600
Exercisable at March 31, 2024	20,000	$	8.86	0.30	$	263,600

Employee Share Purchase Plan (“ESPP”)

The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows:

	Nine Months Ended March 31,
	2024
Volatility rate	64.0%
Risk-free interest rate	5.2%
Expected term	1.3 years
Dividend yield	0%

Share-based Compensation Expense

The total share-based compensation expense recognized in the Condensed Consolidated Statements of Income for the periods presented was as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(in thousands)				(in thousands)
Cost of goods sold	$	1,424	$	1,723	$	3,140	$	5,259
Research and development	2,163		2,987		4,586		8,808
Selling, general and administrative	4,878		5,722		10,348		20,052
	$	8,465	$	10,432	$	18,074	$	34,119

As of March 31, 2024, total unrecognized compensation cost under the Company's equity plans was $55.0 million, which is expected to be recognized over a weighted-average period of 2.5 years.

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Income Taxes

9 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company recognized income tax expense of approximately $0.6 million and $2.5 million for the three months ended March 31, 2024 and 2023, respectively. The income tax expense of $0.6 million for the three months ended March 31, 2024 included a $0.1 million discrete tax expense. The income tax expense of $2.5 million for the three months ended March 31, 2023 included a $0.03 million discrete tax expense. Excluding the discrete income tax items, the income tax expense for the three months ended March 31, 2024 and 2023 was $0.6 million and $2.5 million, respectively, and the effective tax rate for the three months ended March 31, 2024 and 2023 was (5.3)% and (15.2)%, respectively. The changes in the tax expense and effective tax rate between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current year and the same period of last year as well as from reporting pretax book loss of $10.6 million for the three months ended March 31, 2024 as compared to $16.4 million of pretax book loss for the three months ended March 31, 2023.

The Company recognized income tax expense of approximately $2.6 million and $5.6 million for the nine months ended March 31, 2024 and 2023, respectively. The income tax expense of $2.6 million for the nine months ended March 31, 2024 included a $0.2 million discrete tax expense. The income tax expense of $5.6 million for the nine months ended March 31, 2023 included a $0.1 million discrete tax expense. Excluding the discrete income tax items, income tax expense for the nine months ended March 31, 2024 and 2023 was $2.5 million and $5.4 million, respectively, and the effective tax rate for the nine months ended March 31, 2024 and 2023 was (43.4)% and 28.4%, respectively. The changes in the tax expense and effective tax rate between the periods resulted primarily from changes in the mix of earnings in various geographic jurisdictions between the current year and the same period of last year as well as from reporting pretax book loss of $5.7 million for the the nine months ended March 31, 2024 as compared to $19.0 million of pretax book income for the nine months ended March 31, 2023.

The Company files its income tax returns in the United States and in various foreign jurisdictions. The tax years 2001 to 2023 remain open to examination by U.S. federal and state tax authorities. The tax years 2017 to 2023 remain open to examination by foreign tax authorities.

The Company's income tax returns are subject to examinations by the Internal Revenue Service and other tax authorities in various jurisdictions. In accordance with the guidance on the accounting for uncertainty in income taxes, the Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of March 31, 2024, the gross amount of unrecognized tax benefits was approximately $9.5 million, of which $6.4 million, if recognized, would reduce the effective income tax rate in future periods. If the Company's estimate of income tax liabilities proves to be less than the ultimate assessment, then a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. The Company does not anticipate any material changes to its uncertain tax positions during the next twelve months.

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Segment and Geographic Information

9 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company is organized as, and operates in, one operating segment: the design, development and supply of power semiconductor products for computing, consumer electronics, communication and industrial applications. The chief operating decision-makers are the Executive Chairman and the Chief Executive Officer. The financial information presented to the Company’s Executive Chairman and Chief Executive Officer is on a consolidated basis, accompanied by information about revenue by customer and geographic region, for purposes of evaluating financial performance and allocating resources. The Company has one business segment, and there are no segment managers who are held accountable for operations, operating results and plans for products or components below the consolidated unit level. Accordingly, the Company reports as a single operating segment.

The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. Because the Company’s distributors sell their products to end customers which may have a global presence, revenue by geographical location is not necessarily representative of the geographical distribution of sales to end user markets.

In February 2023, the Company entered into a license agreement with a customer to license the Company’s proprietary SiC technology and to provide 24-month engineering and development services for a total fee of $45 million.

The revenue by geographical location in the following tables is based on the country or region in which the products were shipped to:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(in thousands)				(in thousands)
Hong Kong	$	123,731	$	106,940	$	389,018	$	438,537
China	19,108		14,360		76,270		58,104
South Korea	326		1,083		9,670		7,622
United States	1,728		4,245		4,128		16,701
Other countries	5,167		5,932		16,892		8,832
	$	150,060	$	132,560	$	495,978	$	529,796

The following is a summary of revenue by product type:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(in thousands)				(in thousands)
Power discrete	$	93,815	$	80,962	$	324,093	$	363,117
Power IC	49,990		47,416		153,032		159,708
Packaging and testing services and other	1,204		552		2,694		3,341
License and development services	5,051		3,630		16,159		3,630
	$	150,060	$	132,560	$	495,978	$	529,796

Long-lived assets, net consisting of property, plant and equipment and operating lease right-of-use assets, net by geographical area are as follows:

	March 31, 2024		June 30, 2023
	(in thousands)
China	$	109,296	$	114,822
United States	251,049		263,083
Other countries	3,591		4,275
	$	363,936	$	382,180

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Commitments and Contingencies

9 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Purchase Commitments

As of March 31, 2024 and June 30, 2023, the Company had approximately $101.2 million and $127.5 million, respectively, of outstanding purchase commitments primarily for purchases of semiconductor raw materials, wafers, spare parts, packaging and testing services and others.

As of March 31, 2024 and June 30, 2023, the Company had approximately $10.5 million and $9.7 million, respectively, of capital commitments for the purchase of property and equipment.

Other Commitments

        See Note 7 and Note 8 of the Notes to the Condensed Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q for descriptions of commitments including bank borrowings and leases.

Contingencies and Indemnities

The Company has in the past, and may from time to time in the future, become involved in legal proceedings arising from the normal course of business activities.  The semiconductor industry is characterized by frequent claims and litigation, including claims regarding patent and other intellectual property rights as well as improper hiring practices. Irrespective of the validity of such claims, the Company could incur significant costs in the defense of such claims and suffer adverse effects on its operations.

In December 2019, the U.S. Department of Justice (“DOJ”) commenced an investigation into the Company's compliance with export control regulations relating to its business transactions with Huawei and its affiliates (“Huawei”), which were added to the “Entity List” maintained by the Department of Commerce (“DOC”) on May 16, 2019.  The Company cooperated fully with federal authorities in the investigation, including responding to requests for documents, information and interviews from DOJ in connection with the investigation. In connection with this investigation, DOC requested the Company to suspend shipments of its products to Huawei, and the Company complied with such request. The Company has not shipped any product to Huawei after December 31, 2019.  On January 19, 2024, DOJ informed the Company that it has closed such investigation without any charges. The Company continues to cooperate with the DOC in the ongoing civil investigation. DOC has not informed the Company of any specific timeline or schedule under which DOC will complete its review.

The Company is a party to a variety of agreements contracted with various third parties. Pursuant to these agreements, the Company may be obligated to indemnify another party to such an agreement with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold, certain intellectual property rights, specified environmental matters and certain income taxes. In these circumstances, payment by the Company is customarily conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party's claim. Further, the Company's obligations under these agreements may be limited in time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. The Company has not historically paid or recorded any material indemnifications, and no accrual was made at March 31, 2024 and June 30, 2023.

The Company has agreed to indemnify its directors and certain employees as permitted by law and pursuant to its Bye-laws, and has entered into indemnification agreements with its directors and executive officers. The Company has not recorded a liability associated with these indemnification arrangements, as it historically has not incurred any material costs associated with such indemnification obligations. Costs associated with such indemnification obligations may be mitigated by insurance coverage that the Company maintains. However, such insurance may not cover any, or may cover only a portion of, the amounts the Company may be required to pay. In addition, the Company may not be able to maintain such insurance coverage at a reasonable cost.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net loss	$ (11,212)	$ (18,907)	$ (8,349)	$ 13,468

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Insider Trading Arrangements	9 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Material Terms of Trading Arrangement
Michael L. Pfeiffer [Member]
Trading Arrangements, by Individual
Arrangement Duration	365 days
Bing Xue [Member]
Trading Arrangements, by Individual
Arrangement Duration	150 days

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The Company and Significant Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Preparation

Basis of Preparation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Article 10 of Securities and Exchange Commission Regulation S-X, as amended. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included in the interim periods. Operating results for the nine months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2024 or any other interim period. The consolidated balance sheet at June 30, 2023 is derived from the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. To the extent there are material differences between these estimates and actual results, the Company's consolidated financial statements will be affected. On an ongoing basis, the Company evaluates the estimates, judgments and assumptions including those related to stock rotation returns, price adjustments, allowance for doubtful accounts, inventory reserves, warranty accrual, income taxes, leases, share-based compensation, recoverability of and useful lives for property, plant and equipment and intangible assets.

Leases

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities and long-term operating lease liabilities on the Company's

consolidated balance sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and long-term finance leases liabilities on the consolidated balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company determined its incremental borrowing rate based on the information available at the lease commencement date. The operating lease ROU assets also include any lease payments made and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Operating lease expense is generally recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the operating lease ROU asset and lease liability calculation. The Company does not record leases on the consolidated balance sheet with a term of one year or less. The Company elected to combine its lease and non-lease components as a single lease component for all asset classes.

Revenue recognition

Revenue recognition

The Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, a performance obligation is satisfied. The Company recognizes product revenue at a point in time when product is shipped to the customer, as determined by the agreed upon shipping terms, net of estimated stock rotation returns and price adjustments that it expects to provide to certain distributors. The Company presents revenue net of sales taxes and any similar assessments. Our standard payment terms range from 30 to 60 days.

The Company sells its products primarily to distributors, who in turn sell the products globally to various end customers. The Company allows stock rotation returns from certain distributors. Stock rotation returns are governed by contract and are limited to a specified percentage of the monetary value of products purchased by distributors during a specified period. The Company records an allowance for stock rotation returns based on historical returns, current expectations, and individual distributor agreements. The Company also provides special pricing to certain distributors, primarily based on volume, to encourage resale of the Company's products. Allowance for price adjustments is recorded against accounts receivable and the provision for stock rotation rights is included in accrued liabilities on the consolidated balance sheets.

The Company's performance obligations relate to contracts with a duration of less than one year. The Company elected to apply the practical expedient provided in ASC 606, “Revenue from Contracts with Customers”. Therefore, the Company is not required to disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period.

The Company recognizes the incremental direct costs of obtaining a contract, which consist of sales commissions, when control over the products they relate to transfers to the customer. Applying the practical expedient, the Company recognizes commissions as expense when incurred, as the amortization period of the commission asset the Company would have otherwise recognized is less than one year.

Packaging and testing services revenue is recognized at a point in time upon shipment of serviced products to the customer.

Share-based Compensation Expense

Share-based Compensation Expense

The Company maintains an equity-settled, share-based compensation plan to grant restricted share units and stock options. The Company recognizes expense related to share-based compensation awards that are ultimately expected to vest based on estimated fair values on the date of grant. The fair value of restricted share units is based on the fair value of the Company's common share on the date of grant. For restricted stock awards subject to market conditions, the fair value of each restricted stock award is estimated at the date of grant using the Monte-Carlo pricing model. The fair value of stock options is estimated on the date of grant using the Black-Scholes option valuation model. Share-based compensation expense is recognized on the accelerated attribution basis over the requisite service period of the award, which generally equals the vesting period. The Employee Share Purchase Plan (the “ESPP”) is accounted for at fair value on the date of grant using the Black-Scholes option valuation model.

Restricted Cash

Restricted Cash

The Company maintains restricted cash in connection with cash balances temporarily restricted for regular business operations. These balances have been excluded from the Company’s cash and cash equivalents balance and are classified as restricted cash in the Company’s Condensed Consolidated Balance Sheets.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The fair value of cash equivalents is categorized in Level 1 in the fair value hierarchy. Cash equivalents consist primarily of short-term bank deposits. The carrying values of financial instruments such as cash and cash equivalents, accounts

receivable and accounts payable approximate their carrying values due to their short-term maturities. The carrying value of the Company's debt is considered a reasonable estimate of fair value which is estimated by considering the current rates available to the Company for debt of the same remaining maturities, structure, credit risk and terms of the debts.

Government Grants

Government Grants

The Company occasionally receives government grants that provide financial assistance for certain eligible expenditures in China. These grants include reimbursements on interest expense on bank borrowings, payroll tax credits, credit for property, plant and equipment in a particular geographical location, employment credits, as well as business expansion credits. Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attaching to it, and that the grant will be received. The Company records such grants either as a reduction of the related expense, a reduction of the cost of the related asset, or as other income depending upon the nature of the grant.

Accounting for income taxes

Accounting for income taxes

Income tax expense or benefit is based on income or loss before income taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts.

The Company is subject to income taxes in a number of jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company establishes accruals for certain tax contingencies based on estimates of whether additional taxes may be due. While the final tax outcome of these matters may differ from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

The Company is subject to income tax expense or benefit based upon pre-tax income or loss reported in the consolidated statements of income (loss) and the provisions of currently enacted tax laws. The parent company is incorporated under the laws of Bermuda and is subject to Bermuda law with respect to taxation. Under current Bermuda law, the Company is not subject to any income or capital gains taxes in Bermuda. As we have previously disclosed, the Government of Bermuda announced in December 2023 that it enacted the Corporate Income Tax Act 2023, potentially imposing a 15% corporate income tax (CIT) on Bermuda companies that are within the scope of the CIT, that will be effective for tax years beginning on or after January 1, 2025. In particular, the CIT applies to multinational companies with annual revenue of 750 million euros or more in the consolidated financial statements of the ultimate parent entity for at least two of the four fiscal years immediately preceding the fiscal year when the CIT may apply.

The Company is not in a position to determine whether the annual revenues may meet and/or cross the 750 million Euro threshold for at least two of the four fiscal years immediately preceding the fiscal year when CIT may apply. The Company continues to monitor and assess if and when it may be within the scope of the CIT. If we become subject to the Bermuda CIT, we may be subject to additional income taxes, which may adversely affect our financial position, results of operations and our overall business.

Significant management judgment is also required in determining whether deferred tax assets will be realized in full or in part. When it is more likely than not that all or some portion of specific deferred tax assets such as net operating losses or research and development tax credit carryforwards will not be realized, a valuation allowance must be established for the amount of the deferred tax assets that cannot be realized. The Company considers all available positive and negative evidence on a jurisdiction-by-jurisdiction basis when assessing whether it is more likely than not that deferred tax assets are recoverable. The Company considers evidence such as our past operating results, the existence of cumulative losses in recent years and our forecast of future taxable income.

The Financial Accounting Standards Board (FASB), issued guidance which clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the

applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely to be realized upon ultimate settlement. Although the guidance on the accounting for uncertainty in income taxes prescribes the use of a recognition and measurement model, the determination of whether an uncertain tax position has met those thresholds will continue to require significant judgment by management. If the ultimate resolution of tax uncertainties is different from what is currently estimated, a material impact on income tax expense could result.

The Company's provision for income taxes is subject to volatility and could be adversely impacted by changes in earnings or tax laws and regulations in various jurisdictions. The Company is subject to the continuous examination of our income tax returns by the Internal Revenue Service and other tax authorities. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of changes to reserves, as well as the related net interest and penalties.

Long-lived Assets

Long-lived Assets

The Company reviews all long-lived assets whenever events or changes in circumstance indicate that these assets may not be recoverable. When evaluating long-lived assets, if the Company concludes that the estimated undiscounted cash flows attributable to the assets are less than their carrying value, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values, which could adversely affect its results of operations.

Comprehensive Income

Comprehensive Income

Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company's accumulated other comprehensive income consists of cumulative foreign currency translation adjustments. Total comprehensive income is presented in the Condensed Consolidated Statements of Comprehensive Income.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

None

Recently Issued Accounting Standards not yet adopted

In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures”, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU also expands disclosure requirements to enable users of financial statements to better understand the entity’s measurement and assessment of segment performance and resource allocation. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of the ASU on its disclosures within the Consolidated Financial Statements.

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures”, which enhances the transparency, effectiveness and comparability of income tax disclosures by requiring consistent categories and greater disaggregation of information related to income tax rate reconciliations and the jurisdictions in which income taxes are paid. This guidance is effective for annual periods beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impact of the ASU on its income tax disclosures within the Consolidated Financial Statements.

Concentration of Credit Risk

The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application and review of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers.

Credit sales, which are mainly on credit terms of 30 to 60 days, are only made to customers who meet the Company's credit requirements, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its trade accounts receivable to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant bad debt write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, where available.

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Net Income (Loss) Per Common Share Attributable to Alpha and Omega Semiconductor Limited - (Tables)

9 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table presents the calculation of basic and diluted net income (loss) per share attributable to common shareholders:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(in thousands, except per share data)
Numerator:
Net income (loss)	$	(11,212)	$	(18,907)	$	(8,349)	$	13,468
Denominator:
Basic:
Weighted average number of common shares used to compute basic net income (loss) per share	28,433		27,710		28,022		27,537
Diluted:
Weighted average number of common shares used to compute basic net income (loss) per share	28,433		27,710		28,022		27,537
Effect of potentially dilutive securities:
Stock options, RSUs and ESPP shares	—		—		—		2,039
Weighted average number of common shares used to compute diluted net income (loss) per share	28,433		27,710		28,022		29,576
Net income (loss) per share:
Basic	$	(0.39)	$	(0.68)	$	(0.30)	$	0.49
Diluted	$	(0.39)	$	(0.68)	$	(0.30)	$	0.46

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following potential dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive:

	Three Months Ended March 31,		Nine Months Ended March 31,
	2024	2023	2024	2023
	(in thousands)		(in thousands)
Employee stock options and RSUs	1,688	3,152	2,242	281
ESPP	1,008	767	1,046	279
Total potential dilutive securities	2,696	3,919	3,288	560

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Concentration of Credit Risk and Significant Customers (Tables)

9 Months Ended

Mar. 31, 2024

Risks and Uncertainties [Abstract]

Schedules of Concentration of Risk, by Risk Factor

Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts:

	Three Months Ended March 31,				Nine Months Ended March 31,
Percentage of revenue	2024		2023		2024		2023
Customer A	25.0	%	21.0	%	26.1	%	21.7	%
Customer B	46.4	%	28.7	%	44.8	%	35.5	%
Customer D	*		17.9	%	*		14.1	%

	March 31, 2024		June 30, 2023
Percentage of accounts receivable
Customer A	*		15.3	%
Customer B	*		17.6	%
Customer C	23.9	%	13.3	%
Customer D	30.6	%	30.9	%

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Balance Sheet Components (Tables)

9 Months Ended

Mar. 31, 2024

Balance Sheet Related Disclosures [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

Accounts receivable, net:

	March 31, 2024		June 30, 2023
	(in thousands)
Accounts receivable	$	62,565	$	62,426
Less: Allowance for price adjustments	(49,281)		(39,976)
Less: Allowance for doubtful accounts	(30)		(30)
Accounts receivable, net	$	13,254	$	22,420

Schedule of Inventory, Current

Inventories:

	March 31, 2024		June 30, 2023
	(in thousands)
Raw materials	$	83,535	$	86,620
Work-in-process	88,808		69,426
Finished goods	25,755		27,201
	$	198,098	$	183,247

Other Current Assets

Other current assets:

	March 31, 2024		June 30, 2023
	(in thousands)
Value-added tax receivable	$	280	$	275
Other prepaid expenses	2,911		3,863
Prepaid insurance	693		4,162
Prepaid maintenance	1,496		1,697
Prepayment to supplier	115		10,689
Prepaid income tax	2,326		707
Interest receivable	364		135
Other receivables	419		1,138
	$	8,604	$	22,666

Property, Plant and Equipment

Property, plant and equipment, net:

	March 31, 2024		June 30, 2023
	(in thousands)
Land	$	4,877	$	4,877
Building and building improvements	26,970		26,478
Manufacturing machinery and equipment	415,598		398,757
Equipment and tooling	35,553		32,737
Computer equipment and software	51,870		49,890
Office furniture and equipment	3,264		3,087
Leasehold improvements	41,521		38,787
	579,653		554,613
Less: accumulated depreciation and amortization	(308,439)		(272,503)
	271,214		282,110
Equipment and construction in progress	68,301		75,721
Property, plant and equipment, net	$	339,515	$	357,831

Intangible Assets Disclosure

Intangible assets, net:

	March 31, 2024		June 30, 2023
	(in thousands)
Patents and technology rights	$	18,037	$	18,037
Trade name	268		268
Customer relationships	1,150		1,150
	19,455		19,455
Less: accumulated amortization	(15,396)		(12,959)
	4,059		6,496
Goodwill	269		269
Intangible assets, net	$	4,328	$	6,765

Schedule Future Amortization Expense of Intangible Assets

Estimated future minimum amortization expense of intangible assets is as follows (in thousands):

Year ending June 30,
2024 (Remaining)	$	812
2025	3,247
	$	4,059

Schedule of Other Assets, Noncurrent

Other long-term assets:

	March 31, 2024		June 30, 2023
	(in thousands)
Prepayments for property and equipment	$	3,229	$	1,717
Investment in a privately held company	100		100
Customs deposit	651		931
Deposit with supplier	23,342		12,290
Other long-term deposits	37		37
Office leases deposits	1,347		1,274
Other	2,785		3,354
	$	31,491	$	19,703

Schedule of Accrued Liabilities

Accrued liabilities:

	March 31, 2024		June 30, 2023
	(in thousands)
Accrued compensation and benefits	$	15,407	$	15,627
Warranty accrual	2,282		1,674
Stock rotation accrual	4,678		5,588
Accrued professional fees	2,188		2,458
Accrued inventory	565		1,597
Accrued facilities related expenses	2,117		2,327
Accrued property, plant and equipment	5,756		6,402
Other accrued expenses	4,138		4,401
Customer deposits	33,085		38,082
ESPP payable	3,371		1,377
	$	73,587	$	79,533

Schedule of Product Warranty Liability

The activities in the warranty accrual, included in accrued liabilities, are as follows:

	Nine Months Ended March 31,
	2024		2023
	(in thousands)
Beginning balance	$	1,674	$	2,650
Additions	773		2,915
Utilization	(165)		(1,750)
Ending balance	$	2,282	$	3,815

Stock Rotation Accrual

The activities in the stock rotation accrual, included in accrued liabilities, are as follows:

	Nine Months Ended March 31,
	2024		2023
	(in thousands)
Beginning balance	$	5,588	$	4,798
Additions	7,849		9,187
Utilization	(8,759)		(9,904)
Ending balance	$	4,678	$	4,081

Other Long-Term Liabilities

Other long-term liabilities:

	March 31, 2024		June 30, 2023
	(in thousands)
Customer deposits	$	22,361	$	46,393
Computer software liabilities	1,223		4,644
Other long-term liabilities	$	23,584	$	51,037

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Bank Borrowing (Tables)

9 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Maturities

Maturities of short-term debt and long-term debt were as follows (in thousands):

Year ending June 30,
2024 (Remaining)					$	2,885
2025					11,664
2026					11,871
2027					14,344
2028					536
Total principal					41,300
Less: debt issuance costs					(63)
Total principal, less debt issuance costs					$	41,237
	Short-term Debt		Long-term Debt		Total
Principal amount	$	11,614	$	29,686	$	41,300
Less: debt issuance costs	(30)		(33)		(63)
Total debt, less debt issuance costs	$	11,584	$	29,653	$	41,237

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Leases - (Tables)

9 Months Ended

Mar. 31, 2024

Leases [Abstract]

Components of Operating and Finance Lease Costs

The components of the Company’s operating and finance lease expenses are as follows for the periods presented (in thousands):

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
Operating leases:
Fixed rent expense	$	1,356	$	1,385	$	4,399	$	4,298
Variable rent expense	307		279		819		757
Finance lease:
Amortization of equipment	128		128		385		393
Interest	67		83		214		227
Short-term leases
Short-term lease expenses	41		133		128		300
Total lease expenses	$	1,899	$	2,008	$	5,945	$	5,975

Supplemental cash flow information related to the Company’s operating and finance leases is as follows (in thousands):

	Nine Months Ended March 31,
	2024		2023
Cash paid from amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,804	$	4,418
Operating cash flows from finance lease	$	214	$	227
Financing cash flows from finance lease	$	644	$	603
Non-cash investing and financing information:
Operating lease right-of-use assets obtained in exchange for lease obligations	$	3,954	$	2,859

Schedule of Lease Assets and Liabilities

Supplemental balance sheet information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate):

	March 31, 2024			June 30, 2023
Operating Leases:
ROU assets associated with operating leases	$	24,421		$	24,349
Finance Lease:
Property, plant and equipment, gross	$	5,133		$	5,133
Accumulated depreciation	(1,042)			(657)
Property, plant and equipment, net	$	4,091		$	4,476
Weighted average remaining lease term (in years)
Operating leases	5.67			6.57
Finance lease	3.50			4.25
Weighted average discount rate
Operating leases	4.91		%	4.67		%
Finance lease	7.51		%	7.51		%

Schedule of Operating Lease Future Minimum Lease Payments (Topic 842)

Future minimum lease payments are as follows as of March 31, 2024 (in thousands):

Year ending June 30,	Operating Leases		Finance Leases
The remainder of fiscal 2024	$	1,532	$	286
2025	5,954		1,144
2026	5,109		1,144
2027	4,188		1,145
2028	3,691		191
Thereafter	8,322		—
Total minimum lease payments	28,796		3,910
Less amount representing interest	(3,788)		(471)
Total lease liabilities	$	25,008	$	3,439

Schedule of Finance Lease Future Minimum Lease Payments (Topic 842)

Future minimum lease payments are as follows as of March 31, 2024 (in thousands):

Year ending June 30,	Operating Leases		Finance Leases
The remainder of fiscal 2024	$	1,532	$	286
2025	5,954		1,144
2026	5,109		1,144
2027	4,188		1,145
2028	3,691		191
Thereafter	8,322		—
Total minimum lease payments	28,796		3,910
Less amount representing interest	(3,788)		(471)
Total lease liabilities	$	25,008	$	3,439

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Shareholders' Equity and Share-based Compensation (Tables)

9 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Restricted Stock Units Activity

Time-based Restricted Stock Units (“TRSU”)

The following table summarizes the Company's TRSU activities for the nine months ended March 31, 2024:

	Number of Restricted Stock Units	Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Nonvested at June 30, 2023	1,385,065	$	32.48	1.73	$	45,430,132
Granted	641,493	$	22.96
Vested	(475,023)	$	30.31
Forfeited	(32,876)	$	32.35
Nonvested at March 31, 2024	1,518,659	$	29.14	1.85	$	33,471,244

The following table summarizes the Company’s PRSUs activities for the nine months ended March 31, 2024:

	Number of Performance-based Restricted Stock Units	Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Nonvested at June 30, 2023	526,714	$	32.19	1.78	$	17,276,219
Granted	209,250	$	21.55
Vested	(123,632)	$	30.50
Forfeited	(258,957)	$	26.41
Nonvested at March 31, 2024	353,375	$	30.71	1.98	$	7,788,385

Summary of Stock Option Activities

The following table summarizes the Company's stock option activities for the nine months ended March 31, 2024:

				Weighted
		Weighted		Average
		Average		Remaining
	Number of	Exercise Price		Contractual	Aggregate
	Shares	Per Share		Term (in years)	Intrinsic Value
Outstanding at June 30, 2023	319,375	$	7.53	0.72	$	8,071,631
Exercised	(299,375)	$	7.44		$	5,406,850
Outstanding at March 31, 2024	20,000	$	8.86	0.30	$	263,600
Options vested and expected to vest	20,000	$	8.86	0.30	$	263,600
Exercisable at March 31, 2024	20,000	$	8.86	0.30	$	263,600

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The assumptions used to estimate the fair values of common shares issued under the ESPP were as follows:

	Nine Months Ended March 31,
	2024
Volatility rate	64.0%
Risk-free interest rate	5.2%
Expected term	1.3 years
Dividend yield	0%

Share-based Compensation, Allocation of Recognized Period Costs

Share-based Compensation Expense

The total share-based compensation expense recognized in the Condensed Consolidated Statements of Income for the periods presented was as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(in thousands)				(in thousands)
Cost of goods sold	$	1,424	$	1,723	$	3,140	$	5,259
Research and development	2,163		2,987		4,586		8,808
Selling, general and administrative	4,878		5,722		10,348		20,052
	$	8,465	$	10,432	$	18,074	$	34,119

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Segment and Geographic Information (Tables)

9 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Disaggregation of Revenue

The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. Because the Company’s distributors sell their products to end customers which may have a global presence, revenue by geographical location is not necessarily representative of the geographical distribution of sales to end user markets.

In February 2023, the Company entered into a license agreement with a customer to license the Company’s proprietary SiC technology and to provide 24-month engineering and development services for a total fee of $45 million.

The revenue by geographical location in the following tables is based on the country or region in which the products were shipped to:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(in thousands)				(in thousands)
Hong Kong	$	123,731	$	106,940	$	389,018	$	438,537
China	19,108		14,360		76,270		58,104
South Korea	326		1,083		9,670		7,622
United States	1,728		4,245		4,128		16,701
Other countries	5,167		5,932		16,892		8,832
	$	150,060	$	132,560	$	495,978	$	529,796

The following is a summary of revenue by product type:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(in thousands)				(in thousands)
Power discrete	$	93,815	$	80,962	$	324,093	$	363,117
Power IC	49,990		47,416		153,032		159,708
Packaging and testing services and other	1,204		552		2,694		3,341
License and development services	5,051		3,630		16,159		3,630
	$	150,060	$	132,560	$	495,978	$	529,796

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas

Long-lived assets, net consisting of property, plant and equipment and operating lease right-of-use assets, net by geographical area are as follows:

	March 31, 2024		June 30, 2023
	(in thousands)
China	$	109,296	$	114,822
United States	251,049		263,083
Other countries	3,591		4,275
	$	363,936	$	382,180

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The Company and Significant Accounting Policies - Joint Venture (Details) - USD ($) $ in Millions						1 Months Ended
	Mar. 31, 2024	Jun. 30, 2023	Dec. 31, 2021	Dec. 02, 2021	Nov. 30, 2021	Feb. 29, 2024	Jan. 26, 2022	Dec. 24, 2021
Ownership interest, percent	42.20%	42.20%
Joint Venture
Ownership interest, percent				48.80%	50.90%
Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | Joint Venture | Third Party Investor
Ownership interest							7.82%	1.10%
Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | Joint Venture | Employee Incentive Plan | Employee Incentive Plan
Ownership interest								3.99%
Third Party Investor | Joint Venture | Third Party Investor
Ownership interest	42.80%
Payments to acquire investment						$ 5.4
Increase in ownership percentage						0.54%
Chongqing Funds | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture')
Ownership interest, percent			45.80%

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The Company and Significant Accounting Policies - Revenue (Details) - USD ($) $ in Thousands		1 Months Ended			3 Months Ended		9 Months Ended
	Mar. 31, 2024	Feb. 29, 2024	Jul. 31, 2023	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Feb. 28, 2023
Revenues from External Customers and Long-Lived Assets
Remaining performance obligation									$ 45,000
Revenue					$ 150,060	$ 132,560	$ 495,978	$ 529,796
Proceeds from upfront fees		$ 9,000	$ 6,800	$ 18,000
License and development services
Revenues from External Customers and Long-Lived Assets
Revenue	$ 26,100				$ 5,051	$ 3,630	$ 16,159	$ 3,630

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The Company and Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Restricted cash	$ 0.2	$ 0.4

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The Company and Significant Accounting Policies - Government Grants (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Government Grants, Reduction Recorded To Property, Plant And Equipment and Operating Expenses	$ 0.4	$ 0.0	$ 0.8	$ 0.6
Government Grants, Reduction Recorded To Operating Expenses		$ 0.0		$ 0.1

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Equity Method Investment in Equity Investee - Narrative (Details) $ in Thousands, ¥ in Millions								3 Months Ended		9 Months Ended
	Mar. 31, 2024	Jun. 30, 2023	Jan. 26, 2022 USD ($)	Jan. 26, 2022 CNY (¥)	Dec. 31, 2021	Dec. 02, 2021 director	Nov. 30, 2021 director	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 24, 2021
Schedule of Equity Method Investments [Line Items]
Ownership interest, percent	42.20%	42.20%
Number of appointments to board of directors						3	4
Number of directors on Board						7
Equity method investment income (loss) from equity investee | $								$ (676)	$ (1,480)	$ (4,085)	$ 1,533
Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | Chongqing Funds
Schedule of Equity Method Investments [Line Items]
Ownership interest, percent					45.80%
Joint Venture
Schedule of Equity Method Investments [Line Items]
Ownership interest, percent						48.80%	50.90%
Third Party Investor | Joint Venture
Schedule of Equity Method Investments [Line Items]
Proceeds from sale of equity interest in the JV Company			$ 80,000	¥ 509
Third Party Investor | Joint Venture | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture')
Schedule of Equity Method Investments [Line Items]
Ownership interest			7.82%	7.82%								1.10%
Employee Incentive Plan | Joint Venture | Facility in Liangjiang New Area of Chongqing (the 'Joint Venture') | Employee Incentive Plan
Schedule of Equity Method Investments [Line Items]
Ownership interest												3.99%

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Related Party Transactions (Details) - USD ($) $ in Thousands					3 Months Ended		9 Months Ended
	Mar. 31, 2024	Jun. 30, 2023	Dec. 02, 2021	Nov. 30, 2021	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Related Party Transaction [Line Items]
Ownership interest, percent	42.20%	42.20%
Revenue					$ 150,060	$ 132,560	$ 495,978	$ 529,796
Joint Venture
Related Party Transaction [Line Items]
Ownership interest, percent			48.80%	50.90%
Purchases from related party					22,400	20,200	80,800	106,100
Revenue					$ 2,600	$ 4,000	$ 6,300	$ 34,400
Joint Venture | Third Party Investor | Third Party Investor
Related Party Transaction [Line Items]
Ownership interest	42.80%				42.80%		42.80%
Related Party
Related Party Transaction [Line Items]
Accounts payable	$ 14,275	$ 11,950			$ 14,275		$ 14,275

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Net Income (Loss) Per Common Share Attributable to Alpha and Omega Semiconductor Limited - Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income (loss)	$ (11,212)	$ (18,907)	$ (8,349)	$ 13,468
Basic:
Weighted average number of common shares used to compute basic net income (loss) per share	28,433	27,710	28,022	27,537
Effect of potentially dilutive securities:
Stock options, RSUs and ESPP shares	0	0	0	2,039
Weighted average number of common shares used to compute diluted net income (loss) per share	28,433	27,710	28,022	29,576
Net income (loss) per share:
Basic (in dollars per share)	$ (0.39)	$ (0.68)	$ (0.30)	$ 0.49
Diluted (in dollars per share)	$ (0.39)	$ (0.68)	$ (0.30)	$ 0.46

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Net Income (Loss) Per Common Share Attributable to Alpha and Omega Semiconductor Limited - Potential Dilutive Shares (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential dilutive securities (in shares)	2,696	3,919	3,288	560
Employee stock options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential dilutive securities (in shares)	1,688	3,152	2,242	281
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential dilutive securities (in shares)	1,008	767	1,046	279

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Concentration of Credit Risk and Significant Customers - (Details)		3 Months Ended		9 Months Ended
	Jun. 30, 2023	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Customer Concentration Risk | Customer A | Revenue
Concentration Risk
Customers greater than 10% of total		25.00%	21.00%	26.10%	21.70%
Customer Concentration Risk | Customer A | Accounts Receivable
Concentration Risk
Customers greater than 10% of total	15.30%
Customer Concentration Risk | Customer B | Revenue
Concentration Risk
Customers greater than 10% of total		46.40%	28.70%	44.80%	35.50%
Customer Concentration Risk | Customer B | Accounts Receivable
Concentration Risk
Customers greater than 10% of total	17.60%
Customer Concentration Risk | Customer C | Accounts Receivable
Concentration Risk
Customers greater than 10% of total	13.30%			23.90%
Customer Concentration Risk | Customer D | Revenue
Concentration Risk
Customers greater than 10% of total			17.90%		14.10%
Customer Concentration Risk | Customer D | Accounts Receivable
Concentration Risk
Customers greater than 10% of total	30.90%			30.60%
Minimum
Concentration Risk
Terms of credit sales, (in days)				30 days
Maximum
Concentration Risk
Terms of credit sales, (in days)				60 days

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Balance Sheet Components - Accounts receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Accounts receivable	$ 62,565	$ 62,426
Less: Allowance for price adjustments	(49,281)	(39,976)
Less: Allowance for doubtful accounts	(30)	(30)
Accounts receivable, net	$ 13,254	$ 22,420

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Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 83,535	$ 86,620
Work-in-process	88,808	69,426
Finished goods	25,755	27,201
Inventory, net	$ 198,098	$ 183,247

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Balance Sheet Components - Other current assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Value-added tax receivable	$ 280	$ 275
Other prepaid expenses	2,911	3,863
Prepaid insurance	693	4,162
Prepaid maintenance	1,496	1,697
Prepayment to supplier	115	10,689
Prepaid income tax	2,326	707
Interest Receivable, Current	364	135
Other receivables	419	1,138
Other Assets, Current	$ 8,604	$ 22,666

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Balance Sheet Components - Property, plant, and equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Property, Plant and Equipment
Property, plant, and equipment excluding equipment and construction In progress, gross	$ 579,653	$ 554,613
Less: accumulated depreciation and amortization	(308,439)	(272,503)
Property, plant and equipment excluding equipment and construction in progress, net	271,214	282,110
Equipment and construction in progress	68,301	75,721
Property, plant and equipment, net	339,515	357,831
Land
Property, Plant and Equipment
Property, plant, and equipment excluding equipment and construction In progress, gross	4,877	4,877
Building and building improvements
Property, Plant and Equipment
Property, plant, and equipment excluding equipment and construction In progress, gross	26,970	26,478
Manufacturing machinery and equipment
Property, Plant and Equipment
Property, plant, and equipment excluding equipment and construction In progress, gross	415,598	398,757
Equipment and tooling
Property, Plant and Equipment
Property, plant, and equipment excluding equipment and construction In progress, gross	35,553	32,737
Computer equipment and software
Property, Plant and Equipment
Property, plant, and equipment excluding equipment and construction In progress, gross	51,870	49,890
Office furniture and equipment
Property, Plant and Equipment
Property, plant, and equipment excluding equipment and construction In progress, gross	3,264	3,087
Leasehold improvements
Property, Plant and Equipment
Property, plant, and equipment excluding equipment and construction In progress, gross	$ 41,521	$ 38,787

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Balance Sheet Components - Intangible assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Schedule of Finite-lived Intangible Assets and Goodwill
Finite-Lived Intangible Assets, Gross	$ 19,455	$ 19,455
Less: accumulated amortization	(15,396)	(12,959)
Total intangible assets	4,059	6,496
Goodwill	269	269
Intangible assets, net	4,328	6,765
Patents and technology rights
Schedule of Finite-lived Intangible Assets and Goodwill
Finite-Lived Intangible Assets, Gross	18,037	18,037
Trade name
Schedule of Finite-lived Intangible Assets and Goodwill
Finite-Lived Intangible Assets, Gross	268	268
Customer relationships
Schedule of Finite-lived Intangible Assets and Goodwill
Finite-Lived Intangible Assets, Gross	$ 1,150	$ 1,150

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Balance Sheet Components - Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Balance Sheet Related Disclosures [Abstract]
2024 (Remaining)	$ 812
2024	3,247
Total intangible assets	$ 4,059	$ 6,496

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Balance Sheet Components - Other long term assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Prepayments for property and equipment	$ 3,229	$ 1,717
Investment in a privately held company	100	100
Customs deposit	651	931
Deposit with supplier	23,342	12,290
Other long-term deposits	37	37
Office leases deposits	1,347	1,274
Other	2,785	3,354
Other long-term assets	$ 31,491	$ 19,703

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Balance Sheet Components - Accrued liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022
Accrued Liabilities
Accrued compensation and benefits	$ 15,407	$ 15,627
Warranty accrual	2,282	1,674	$ 3,815	$ 2,650
Stock rotation accrual	4,678	5,588	$ 4,081	$ 4,798
Accrued professional fees	2,188	2,458
Accrued inventory	565	1,597
Accrued facilities related expenses	2,117	2,327
Accrued property, plant and equipment	5,756	6,402
Other accrued expenses	4,138	4,401
Customer deposits	33,085	38,082
ESPP payable	3,371	1,377
Accrued liabilities	73,587	79,533
Customer A
Accrued Liabilities
Customer deposits	10,000	13,500
Customer B
Accrued Liabilities
Customer deposits	8,900	9,200
Other Customer
Accrued Liabilities
Customer deposits	$ 14,200	$ 15,400

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Balance Sheet Components - Product Warranty Accrual (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease)
Beginning balance	$ 1,674	$ 2,650
Additions	773	2,915
Utilization	(165)	(1,750)
Ending balance	$ 2,282	$ 3,815

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Balance Sheet Components - Stock Rotation Accrual (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock Rotation Accrual Increase (Decrease)
Beginning balance	$ 5,588	$ 4,798
Additions	7,849	9,187
Utilization	(8,759)	(9,904)
Ending balance	$ 4,678	$ 4,081

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Balance Sheet Components - Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Concentration Risk
Customer deposits	$ 22,361	$ 46,393
Computer software liabilities	1,223	4,644
Other long-term liabilities	23,584	51,037
Customer A
Concentration Risk
Customer deposits	12,000	21,000
Customer B
Concentration Risk
Customer deposits	3,000	11,700
Other Customers
Concentration Risk
Customer deposits	$ 7,400	$ 13,700

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Bank Borrowing - Narrative (Details) € in Millions				1 Months Ended	9 Months Ended
	Feb. 16, 2022 USD ($)	Aug. 18, 2021 USD ($)	Aug. 09, 2019 USD ($)	Sep. 30, 2022 USD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2024 CNY (¥)	Mar. 31, 2024 EUR (€)	Dec. 31, 2023 USD ($)	Dec. 31, 2023 CNY (¥)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 CNY (¥)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Aug. 11, 2021 USD ($)	Apr. 30, 2021 EUR (€)
Debt Instrument [Line Items]
Lease completion buyout option, amount													$ 1
Long-term debt					$ 29,653,000							$ 38,360,000
Jireh Semiconductor Incorporated | Sales-Lease Back Transaction with Jireh Semiconductor Incorporated
Debt Instrument [Line Items]
Debt financing term (in years)					5 years
Implied interest rate				7.51%	4.75%
Historical cost | €							€ 12.0
Down payment amount | €																€ 6.0
Down payment percent				50.00%												50.00%
Delivery payment, percent														40.00%
Delivery payment, amount														$ 4,800,000
Purchase price financing, percent				10.00%
Payments for purchase of optional hardware				$ 200,000
Outstanding balance					$ 9,800,000
Jireh Semiconductor Incorporated | Sales-Lease Back Transaction with Jireh Semiconductor Incorporated | Manufacturing machinery and equipment
Debt Instrument [Line Items]
Collateral amount					14,000,000
Secured Debt | Accounts Receivable Factoring Agreement August 9 2019
Debt Instrument [Line Items]
Accounts Receivable Factoring Agreement, Reduction Of Maximum Borrowing Capacity															$ 8,000,000
Secured Debt | Jireh
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 45,000,000
Debt instrument, term		5 years 6 months
Amount outstanding					31,500,000
Proceeds from lines of credit	$ 45,000,000
Bank Of Communications Limited | Line of Credit | Line Of Credit Maturing December 1 2023
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					19,400,000	¥ 140,000,000
Amount outstanding					0
Long-Term Line of Credit					0
Hongkong And Shanghai Banking Corporation Limited | Secured Debt | Accounts Receivable Factoring Agreement August 9 2019
Debt Instrument [Line Items]
Accounts receivable factoring agreement, maximum borrowing capacity, percent of net accounts receivable			70.00%
Accounts receivable factoring agreement, maximum borrowing capacity			$ 30,000,000
Accounts receivable factoring agreement, remaining borrowing capacity					8,000,000
Accounts receivable factoring agreement, borrowed amount outstanding					0
Hongkong And Shanghai Banking Corporation Limited | Secured Debt | Accounts Receivable Factoring Agreement August 9 2019 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate			2.01%
Industrial And Commercial Bank of China | Foreign Line of Credit
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity								$ 10,200,000	¥ 72,000,000
Amount outstanding					$ 0
China Construction Bank | Line of Credit | Line Of Credit Maturing Septmeber 2025
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity										$ 6,800,000	¥ 50,000,000

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Bank Borrowing - Schedule of Debt Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Debt Disclosure [Abstract]
2023 (Remaining)	$ 2,885
2024	11,664
2025	11,871
2026	14,344
2027	536
Total principal, less debt issuance costs	41,300
Less: debt issuance costs	(63)
Debt, Long-Term And Short-Term, Combined Amount, Net	41,237
Short-term Debt [Abstract]
Principal amount	11,614
Less: debt issuance costs	(30)
Total debt, less debt issuance costs	11,584
Long-term Debt, Unclassified [Abstract]
Principal amount	29,686
Less: debt issuance costs	(33)
Total debt, less debt issuance costs	$ 29,653	$ 38,360

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Leases - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Debt Instrument [Line Items]
Operating lease liability	$ 25,008
ROU assets associated with operating leases	24,421	$ 24,349
Property, plant and equipment, gross	$ 5,133	$ 5,133

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Leases - Schedule of Operating and Finance Lease Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Operating leases:
Fixed rent expense	$ 1,356	$ 1,385	$ 4,399	$ 4,298
Variable rent expense	307	279	819	757
Finance lease:
Amortization of equipment	128	128	385	393
Interest	67	83	214	227
Short-term leases
Short-term lease expenses	41	133	128	300
Total lease expenses	$ 1,899	$ 2,008	$ 5,945	$ 5,975

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Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Operating Leases:
ROU assets associated with operating leases	$ 24,421	$ 24,349
Finance Lease:
Property, plant and equipment, gross	5,133	5,133
Accumulated depreciation	(1,042)	(657)
Property, plant and equipment, net	$ 4,091	$ 4,476
Weighted average remaining lease term (in years)
Operating leases	5 years 8 months 1 day	6 years 6 months 25 days
Finance lease	3 years 6 months	4 years 3 months
Weighted average discount rate
Operating leases	4.91%	4.67%
Finance lease	7.51%	7.51%

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Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash paid from amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 4,804	$ 4,418
Operating cash flows from finance lease	214	227
Financing cash flows from finance lease	644	603
Operating lease right-of-use assets obtained in exchange for lease obligations	$ 3,954	$ 2,859

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Leases - Future Minimum Lease Payments (Topic 842) (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Operating Leases
The remainder of fiscal 2024	$ 1,532
2024	5,954
2025	5,109
2026	4,188
2027	3,691
Thereafter	8,322
Total minimum lease payments	28,796
Less amount representing interest	(3,788)
Total Operating Lease Liability	25,008
Finance Leases
The remainder of fiscal 2024	286
2024	1,144
2025	1,144
2026	1,145
2027	191
Thereafter	0
Total minimum lease payments	3,910
Less amount representing interest	(471)
Total Finance Lease Liability	$ 3,439

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Shareholders' Equity and Share-based Compensation - Shares Repurchase (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2017
Class of Stock [Line Items]
Share repurchase program, authorized amount (USD in Millions)					$ 30,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0	0	0	0
Share-based compensation expense	$ 8,465	$ 10,432	$ 18,074	$ 34,119
2018 Market-based Restricted Stock Units (MSU)
Class of Stock [Line Items]
Share-based compensation expense	$ 200	$ 300	$ 800	$ 3,600

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Shareholders' Equity and Share-based Compensation - Time-based Restricted Stock Activity (Details)		9 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares	Mar. 31, 2024 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Weighted average remaining recognition period (in years)		2 years 6 months
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at beginning of period (in shares) | shares		1,385,065
Granted (in shares) | shares		641,493
Vested (in shares) | shares		(475,023)
Forfeited (in shares) | shares		(32,876)
Nonvested at end of period (in shares) | shares	1,385,065	1,518,659
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested at beginning of period (in dollars per share) | $ / shares		$ 32.48
Granted (in dollars per share) | $ / shares		22.96
Vested (in dollars per share) | $ / shares		30.31
Forfeited (in dollars per share) | $ / shares		32.35
Nonvested at end of period (in dollars per share | $ / shares	$ 32.48	$ 29.14
Weighted average remaining recognition period (in years)	1 year 8 months 23 days	1 year 10 months 6 days
Aggregate Intrinsic Value | $	$ 45,430,132	$ 33,471,244

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Shareholders' Equity and Share-based Compensation - Market-based Restricted Stock Units Narrative (Details) - USD ($)				1 Months Ended	3 Months Ended			9 Months Ended
	Mar. 31, 2024	Sep. 19, 2023	Jun. 30, 2023	Dec. 31, 2021	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2018	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense					$ 8,465,000	$ 10,432,000		$ 18,074,000	$ 34,119,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Weighted average remaining recognition period (in years)								2 years 6 months
Joint Venture
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Purchases from related party					22,400,000	20,200,000		$ 80,800,000	106,100,000
Revision of Prior Period, Adjustment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense								(6,400,000)
Scenario, Adjustment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense					(1,100,000)			(4,000,000)
2021 Market-based Restricted Stock Units (MSU)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense						2,100,000			6,200,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (in shares)				1,000,000
2018 Market-based Restricted Stock Units (MSU)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense					$ 200,000	$ 300,000		$ 800,000	$ 3,600,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (in shares)							1,300,000
Market-based Restricted Stock Units (MSU)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate		4.94%
Expected term		2 years 3 months 10 days
Dividend yield		0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at beginning of period (in shares)								2,108,000
Granted (in shares)								0
Vested (in shares)								(275,000)
Forfeited (in shares)								(10,000)
Nonvested at end of period (in shares)	1,823,000		2,108,000		1,823,000			1,823,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested at beginning of period (in dollars per share)								$ 25.86
Granted (in dollars per share)								0
Vested (in dollars per share)								5.17
Forfeited (in dollars per share)								48.44
Nonvested at end of period (in dollars per share	$ 28.86		$ 25.86		$ 28.86			$ 28.86
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate		61.38%
Weighted average remaining recognition period (in years)	3 years 1 month 13 days		2 years 11 months 15 days
Aggregate Intrinsic Value	$ 40,178,920		$ 69,142,400		$ 40,178,920			$ 40,178,920
Market-based Restricted Stock Units (MSU) | Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period		4 years

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Shareholders' Equity and Share-based Compensation - Performance-based Restricted Stock Units (Details) - USD ($)			3 Months Ended		9 Months Ended
	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense			$ 8,465,000	$ 10,432,000	$ 18,074,000	$ 34,119,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Weighted average remaining recognition period (in years)					2 years 6 months
Performance Based Restricted Stock Units (PRSUs) Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense			$ 800,000	$ 1,400,000	$ 2,000,000	$ 4,100,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at beginning of period (in shares)					526,714
Granted (in shares)					209,250
Vested (in shares)					(123,632)
Forfeited (in shares)					(258,957)
Nonvested at end of period (in shares)	353,375	526,714	353,375		353,375
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested at beginning of period (in dollars per share)					$ 32.19
Granted (in dollars per share)					21.55
Vested (in dollars per share)					30.50
Forfeited (in dollars per share)					26.41
Nonvested at end of period (in dollars per share	$ 30.71	$ 32.19	$ 30.71		$ 30.71
Weighted average remaining recognition period (in years)	1 year 11 months 23 days	1 year 9 months 10 days
Aggregate Intrinsic Value	$ 7,788,385	$ 17,276,219	$ 7,788,385		$ 7,788,385

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Shareholders' Equity and Share-based Compensation - Stock Options Outstanding and Exercisable (Details) - USD ($)		9 Months Ended
	Jun. 30, 2023	Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period (in shares)		319,375
Exercised (in shares)		(299,375)
Outstanding at end of period (In shares)	319,375	20,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value		$ 5,406,850
Options vested and expected to vest (in shares)		20,000
Exercisable at end of period (in shares)		20,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning of period (in dollars per share)		$ 7.53
Exercised (in dollars per share)		7.44
Outstanding at end of period (in dollars per share)	$ 7.53	8.86
Options vested and expected to vest (in dollars per share)		8.86
Exercisable at end of period (in dollars per share)		$ 8.86
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options outstanding, Weighted-Average Remaining Contractual Life (in years)	8 months 19 days	3 months 18 days
Options vested and expected to vest, Weighted Average Remaining Contractual Life (in years)		3 months 18 days
Exercisable at end of period, Weighted Average Remaining Contractual Life (in years)		3 months 18 days
Options outstanding, Aggregate Intrinsic Value	$ 8,071,631	$ 263,600
Options vested and expected to vest, Aggregate Intrinsic Value		263,600
Exercisable at end of period, Aggregate Intrinsic Value		$ 263,600

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Shareholders' Equity and Share-based Compensation - Employee Share Purchase Plan (Details) - ESPP	9 Months Ended
	Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility rate	64.00%
Risk-free interest rate	5.20%
Expected term	1 year 3 months 18 days
Dividend yield	0.00%

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Shareholders' Equity and Share-based Compensation - Share-based Compensation (Details) - USD ($)		3 Months Ended			9 Months Ended
	Jun. 30, 2023	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2018	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 8,465,000	$ 10,432,000		$ 18,074,000	$ 34,119,000
Options outstanding, Weighted-Average Remaining Contractual Life (in years)	8 months 19 days				3 months 18 days
Options vested and expected to vest (in shares)		20,000			20,000
Options vested and expected to vest (in dollars per share)		$ 8.86			$ 8.86
Options vested and expected to vest, Weighted Average Remaining Contractual Life (in years)					3 months 18 days
Options vested and expected to vest, Aggregate Intrinsic Value		$ 263,600			$ 263,600
Exercisable at end of period (in shares)		20,000			20,000
Exercisable at end of period (in dollars per share)		$ 8.86			$ 8.86
Exercisable at end of period, Weighted Average Remaining Contractual Life (in years)					3 months 18 days
Exercisable at end of period, Aggregate Intrinsic Value		$ 263,600			$ 263,600
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period (in shares)					319,375
Outstanding at end of period (In shares)	319,375	20,000			20,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning of period (in dollars per share)					$ 7.53
Outstanding at end of period (in dollars per share)	$ 7.53	$ 8.86			$ 8.86
Options outstanding, Aggregate Intrinsic Value	$ 8,071,631	$ 263,600			$ 263,600
2018 Market-based Restricted Stock Units (MSU)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		200,000	300,000		800,000	3,600,000
Granted (in shares)				1,300,000
Performance Based Restricted Stock Units (PRSUs) Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 800,000	$ 1,400,000		$ 2,000,000	$ 4,100,000
Granted (in shares)					209,250

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Shareholders' Equity and Share-based Compensation - Share-based Compensation Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 8,465	$ 10,432	$ 18,074	$ 34,119
Unrecognized compensation expense	55,000		$ 55,000
Recognition period of share-based compensation expense (in years)			2 years 6 months
Cost of goods sold
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	1,424	1,723	$ 3,140	5,259
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	2,163	2,987	4,586	8,808
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 4,878	$ 5,722	$ 10,348	$ 20,052

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Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 611	$ 2,517	$ 2,643	$ 5,550
Discrete income tax expense	100	30	200	100
Income tax expense net of discrete tax expense	$ 600	$ 2,500	$ 2,500	$ 5,400
Estimated effective income tax rate excluding discrete income tax expense	(5.30%)	(15.20%)	(43.40%)	28.40%
Unrecognized tax benefits	$ 9,500		$ 9,500
Unrecognized tax benefit that would impact effective tax rate	6,400		6,400
Pre Tax Income (Loss)	$ (10,600)	$ 16,400	$ 5,700	$ 19,000

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Segment and Geographic Information - Narratives (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 28, 2023 USD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2024 USD ($) Segment	Mar. 31, 2023 USD ($)
Segment Reporting [Abstract]
Number of operating segments | Segment				1
Number of reportable segments | Segment				1
Revenues from External Customers and Long-Lived Assets
Revenue | $		$ 150,060	$ 132,560	$ 495,978	$ 529,796
Service
Revenues from External Customers and Long-Lived Assets
Revenue | $	$ 45,000

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Segment and Geographic Information - Revenue by Location and Product Type (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Revenues from External Customers and Long-Lived Assets
Revenue		$ 150,060	$ 132,560	$ 495,978	$ 529,796
Power discrete
Revenues from External Customers and Long-Lived Assets
Revenue		93,815	80,962	324,093	363,117
Power IC
Revenues from External Customers and Long-Lived Assets
Revenue		49,990	47,416	153,032	159,708
Packaging and testing services and other
Revenues from External Customers and Long-Lived Assets
Revenue		1,204	552	2,694	3,341
License and development services
Revenues from External Customers and Long-Lived Assets
Revenue	$ 26,100	5,051	3,630	16,159	3,630
Hong Kong
Revenues from External Customers and Long-Lived Assets
Revenue		123,731	106,940	389,018	438,537
China
Revenues from External Customers and Long-Lived Assets
Revenue		19,108	14,360	76,270	58,104
South Korea
Revenues from External Customers and Long-Lived Assets
Revenue		326	1,083	9,670	7,622
United States
Revenues from External Customers and Long-Lived Assets
Revenue		1,728	4,245	4,128	16,701
Other countries
Revenues from External Customers and Long-Lived Assets
Revenue		$ 5,167	$ 5,932	$ 16,892	$ 8,832

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Segment and Geographic Information - Long-lived Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Revenues from External Customers and Long-Lived Assets
Property, plant and equipment, net and land use rights, net	$ 363,936	$ 382,180
China
Revenues from External Customers and Long-Lived Assets
Property, plant and equipment, net and land use rights, net	109,296	114,822
United States
Revenues from External Customers and Long-Lived Assets
Property, plant and equipment, net and land use rights, net	251,049	263,083
Other countries
Revenues from External Customers and Long-Lived Assets
Property, plant and equipment, net and land use rights, net	$ 3,591	$ 4,275

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Commitments and Contingencies - Purchase Commitments (Details) - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Raw materials, wafers, and packaging and testing services puchase commitments
Purchase Commitment, Excluding Long-term Committment [Line Items]
Purchase commitment, amount	$ 101.2	$ 127.5
Property and equipment purchase commitments
Purchase Commitment, Excluding Long-term Committment [Line Items]
Purchase commitment, amount	$ 10.5	$ 9.7

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Commitments and Contingencies - Contingencies and Indemnities (Details) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Indemnification Agreement
Loss Contingencies [Line Items]
Indemnifications accrual	$ 0	$ 0