Qorvo, Inc.

Reputation and brand · Esg environmental social governance performance

Certain jurisdictions may require companies to disclose environmental and social policies, practices and metrics, on topics such as climate change, carbon emissions, water usage, waste management and human capital. If we do not adapt our strategy or execution quickly enough to meet the evolving expectations of our investors, customers and regulators, our business, financial condition, results of operations, brand and reputation could be adversely affected.

Reputation and brand · Corporate social responsibility

Many of our largest end customers require companies within their supply chain to comply with corporate social responsibility policies that exceed applicable legal requirements, and often include employment, human rights, health, safety, and environmental initiatives. Compliance with these policies increases our operating expenses, and non-compliance can adversely affect customer relationships.

Corporate governance · Internal controls and risk management

We design our computer systems and networks and implement various procedures to restrict unauthorized access to, or dissemination of, our proprietary information. We cannot, however, assure that such system improvements will be sufficient to prevent or limit the damage from any future cyber-attack or network disruptions.

International and currency · Foreign exchange and currency exposure

As a global company, our results are affected by movements in currency exchange rates. Our exposure may increase or decrease over time as our foreign business levels fluctuate in the countries where we have operations, and these changes could have a material impact on our financial results.

Market and investment · Asset valuation and impairment

We are subject to inventory risks and costs because we purchase materials and build our products based on forecasts provided by customers before receiving purchase orders for the products. Because demand for our products may not materialize, or may be lower than expected, purchasing materials and manufacturing based on forecasts subjects us to heightened risks of higher inventory carrying costs, increased obsolescence, and higher operating costs.

Credit and liquidity · Access to capital and financing

If our cash flows and capital resources are insufficient to fund our debt service obligations, we may face liquidity issues and be forced to reduce or delay investments and capital expenditures, or to sell assets, seek additional capital or restructure or refinance our debt.

Human capital and workforce · Key personnel dependence and succession

We must hire and retain qualified employees, continue to develop leaders for key business units and functions. Our future operating results and success depend on retaining and recruiting key R&D and technical personnel, as well as sales and marketing and administrative support.

Supply chain and procurement · Raw material availability and cost volatility

The availability of raw materials, the impact of the volatility of commodity pricing and tariffs imposed on raw materials, including substrates, gold, platinum and high-purity source materials such as gallium, aluminum, arsenic, indium, silicon, phosphorous and palladium affect our business and financial results.

Supply chain and procurement · Supplier operation and dependance

We depend heavily on third parties. We purchase numerous component parts, substrates and silicon-based products from external suppliers. We also utilize third parties for numerous services, including die processing, wafer bumping, assembly, test and tape and reel.

Supply chain and procurement · Supplier financial distress and capability

If a supplier experiences financial difficulties or goes into bankruptcy, it could be difficult or impossible, or may require substantial time and expense, for us to recover any or all of our fees and deposits made as part of any supply agreement.

Market position and competition · Competitive pressure and market share loss

We operate in a very competitive industry and must continue to innovate. We compete with companies primarily engaged in the business of designing, manufacturing and selling RF solutions, as well as suppliers of discrete ICs and modules. Increased competition from any source could adversely affect our operating results through lower prices for our products, reduced demand for our products, losses of existing design slots with key customers.

Innovation and product development · Intellectual property protection and infringement

We rely on our intellectual property portfolio and may not be able to successfully protect against the use of our intellectual property by third parties. We rely on a combination of patents, copyrights, trademarks, trade secret laws, confidentiality procedures and licensing arrangements to protect our IP rights.

Market position and competition · Disruptive competitors and new market entrants

In addition to our direct competitors, some of our largest end customers and leading platform partners also compete with us to some extent by designing and manufacturing their own products. The increasing use of machine learning and AI to meet evolving industry requirements comes with inherent risks, including timely adoption and incorporation of these technologies into our business strategy to stay competitive.

Strategic execution · Merger acquisition and divestiture risks

The consummation of the Mergers is contingent upon the satisfaction of a number of conditions that may be outside of our or Skyworks' control and that we and Skyworks may be unable to satisfy, or which may delay the consummation of the Mergers or result in the imposition of conditions that could reduce the anticipated benefits from the Mergers or cause the parties to abandon the Mergers.

Data and privacy · Consumer privacy and consent

We may be subject to theft, loss, or misuse of personal data by or about our employees, customers or other third parties, which could increase our expenses, damage our reputation, or result in legal or regulatory proceedings. The theft, loss, or misuse of personal data collected, used, stored, or transferred by us could result in damage to our reputation and significantly increased business and security costs.

Legal and litigation · Product liability and warranty claims

We are subject to warranty claims, product recalls and product liability. From time to time, we may be subject to warranty or product liability claims that could lead to significant expense. If one of our customers recalls a product containing one of our devices, we may incur significant costs and expenses, including replacement costs and direct and indirect product recall-related costs.

Economic and market conditions · Inflation and deflation pressures

Inflationary pressures, which vary across jurisdictions in which we do business, resulting in increased costs or reduced demand for our products due to increased prices of those products affect our operating results.

Natural and catastrophic events · Pandemic and public health crises

Pandemics and similar major health concerns, which could adversely affect our business and our customer order patterns are a risk to our operations. Public health issues (including pandemics) could disrupt our worldwide operations and business.

Digital transformation and innovation · Technology obsolescence and evolution

The use of AI and machine learning applications by our employees may also increase the risk of unintended or inadvertent disclosure of proprietary or sensitive information. Evolving AI capabilities could be used in new and significantly more sophisticated ways to identify vulnerabilities, craft targeted social engineering and fraud attempts, generate malicious code and launch phishing attempts or other cyber-attacks.

Cybersecurity and data protection · Data breaches and cyber attacks

Security breaches, failed system upgrades or regular maintenance and other disruptions to our IT systems, or other misappropriation of proprietary information could expose us to liability or disrupt our ability to operate critical business functions, which would cause our business and reputation to suffer. We face internal and external data security threats.