Sandisk

“All of our flash-based memory is obtained from our joint ventures with Kioxia, which provide us with leading-edge, high-quality flash memory wafers.”

Annual report 2026A · The company itself

“(“Sandisk Technologies”), SanDisk LLC, SanDisk Ireland and SanDisk Cayman, under which Sandisk Technologies will make certain payments directly to Kioxia totaling $1.2 billion over the years 2026 through 2029 in consideration of Kioxia’s manufacturing services and the continued availability of supply, from execution through December 31, 2034.”

Annual report 2026A · The company itself

“All of our flash memory wafers are currently obtained from Flash Ventures.”

Annual report 2026A · The company itself

“For example, many of our enterprise-grade SSD products incorporate DRAM, which is a commodity component that has experienced supply constraints and may remain in short supply for extended periods.”

Annual report 2026A · The company itself

“The terms of our agreements with Kioxia with respect to Flash Ventures require that substantially all of our flash-based memory be obtained from Flash Ventures, which limits our ability to respond to market demand and supply changes and makes our financial results particularly susceptible to variations from our forecasts and expectations. For example, we are contractually obligated to pay for 50% of the fixed costs of Flash Ventures regardless of whether we order any flash-based memory, and our orders placed with Flash Ventures on a rolling basis are binding.”

Annual report 2026A · The company itself

“All of our flash-based memory wafers are manufactured by the Flash Ventures in purpose-built wafer fabrication facilities that the Flash Ventures lease, located in Yokkaichi and Kitakami, Japan.”

Annual report 2026A · The company itself

“We and Kioxia currently operate three business ventures, Flash Partners Ltd., Flash Alliance Ltd. and Flash Forward Ltd., (collectively, “Flash Ventures”) across eight flash-based manufacturing facilities in Japan, six of which are located in Yokkaichi, Japan and two of which are located in Kitakami, Japan. Through Flash Ventures, we and Kioxia collaborate in the development and manufacture of flash-based memory wafers using semiconductor manufacturing equipment owned or leased by each of the Flash Ventures entities.”

Annual report 2026A · The company itself

“Some of our competitors offer products that we do not offer (including DRAM), which may allow them to win sales from us or to more efficiently maintain product availability, pricing, and margins on products that incorporate DRAM, such as enterprise-grade SSDs.”

Annual report 2026A · The company itself

“Our solutions include a broad range of solid-state drives (“SSDs”), embedded products, removable cards, universal serial bus drives and wafers and components.”

Annual report 2026A · The company itself

“Industry We operate in the semiconductor memory chip and data storage industries. The ability to access, store and share data from anywhere on any device is increasingly important to our customers and end users.”

Annual report 2026A · The company itself

“Segment Reporting The Company develops, manufactures, markets, and sells data storage devices and solutions based on NAND flash technology in the U.S. and in foreign countries through its sales personnel, dealers, distributors, retailers, and subsidiaries.”

Annual report 2026A · The company itself

“The increase in computing complexity and advancements in AI, along with growth in cloud computing applications, connected mobile devices and Internet-connected products, and edge devices are driving substantial growth in the volume of digital content to be stored and used.”

Annual report 2026A · The company itself

“•We may be adversely affected by risks and challenges associated with the use of artificial intelligence (“AI”).”

Annual report 2026A · The company itself

“Our increasing use of AI, including generative AI, agentic AI and AI-enabled automation technologies, may elevate the risk of cybersecurity incidents, whether through our authorized use of such technologies to perform business or operational tasks with limited human oversight or through malicious use by threat actors to automate, scale or adapt attacks against our systems, products, employees, customers, suppliers or partners. These technologies may be leveraged by threat actors to generate more convincing phishing or social engineering content, identify and exploit vulnerabilities more efficiently, create malicious code that is more difficult to detect, or automate, scale, adapt or obscure cyberattacks. In addition, AI systems may inadvertently expose sensitive information if not properly secured, governed, configured, monitored, or connected to systems or data containing confidential information.”

Annual report 2026A · The company itself

“In addition, the use of AI in the development of our products could potentially lead to ambiguities in intellectual property ownership, infringement or misappropriation risks, which could impact our competitive position and expose us to litigation, monetary penalties, or operational disruptions.”

Annual report 2026A · The company itself

“Rapid technological changes have reduced, and may reduce in the future, the volume and profitability of sales of existing products and increase the risk of inventory obsolescence and write-downs.”

Annual report 2026A · The company itself

“In particular, demand for our products depends increasingly on the use of NAND flash memory in AI infrastructure, and new or alternative technologies could emerge that perform these functions more efficiently or reduce the storage required per unit of AI compute. If adopted at scale, such technologies could rapidly reduce or eliminate the importance of, and demand for, our technology in the AI infrastructure.”

Annual report 2026A · The company itself

“Additionally, demand for certain of our products is increasingly influenced by AI-related deployments and our customers’ and partners’ ability to timely build complex data center infrastructure. AI as a new demand driver is evolving rapidly, and the expected timing and magnitude of demand related to AI are difficult to predict.”

Annual report 2026A · The company itself

“Our success depends on our ability to attract, retain and develop highly skilled management and technical talent. The success of our business depends on our ability to attract, retain, and develop highly skilled management and technical talent capable of advancing NAND technology in an increasingly complex and competitive global environment. The rapid pace of innovation driven by AI, global research and development competition, evolving models of work, and intensifying customer demands for faster, more efficient solutions has significantly raised the bar for the technical expertise required to power current and next-generation technologies. As a result, acquiring and retaining such talent has become increasingly difficult.”

Annual report 2026A · The company itself

“We may be adversely affected by the risks, challenges, and evolving regulatory landscape associated with the use of AI in our operations, product development, and business practices. We are increasingly leveraging AI technologies, including generative AI applications and tools, to support and enhance our various operational processes. While AI may promote efficiency and offer analytical advantages, it is complex and rapidly-changing, and its implementation carries inherent risks.”

Annual report 2026A · The company itself

“Table of Contents Our reliance on intellectual property and other proprietary information subjects us to the risk that these key components of our business could be copied by competitors. Our success depends, in significant part, on the proprietary nature of our technology, including non-patentable intellectual property such as our process technology.”

Annual report 2026A · The company itself

“Additionally, demand for certain of our products is increasingly influenced by AI-related deployments and our customers’ and partners’ ability to timely build complex data center infrastructure. AI as a new demand driver is evolving rapidly, and the expected timing and magnitude of demand related to AI are difficult to predict.”

Annual report 2026A · The company itself

“The Datacenter end market is comprised primarily of products for datacenters, cloud service providers, and private cloud customers.”

Annual report 2026A · The company itself

“Datacenter represents a large and growing end market comprised primarily of products for public or private cloud environments and enterprise customers. We provide the Datacenter end market with an array of high-performance enterprise SSDs.”

Annual report 2026A · The company itself

“Fewer companies now hold greater market share for certain applications and services, such as cloud storage and computing platforms, mobile, social media, shopping and streaming media. As a result, the competitive landscape is changing, giving these companies increased leverage in negotiating prices and other terms of sale, which could negatively impact our profitability.”

Annual report 2026A · The company itself

“Through the Edge end market, we provide our original equipment manufacturer (“OEM”) and channel customers a broad array of high-performance flash solutions across personal computer, mobile, gaming, automotive, physical AI, at-home entertainment, and industrial spaces.”

Annual report 2026A · The company itself

“Through the Edge end market, we provide numerous data solutions that we incorporate into our client’s devices, which consist of SSDs for desktop and notebook PCs, gaming consoles and set top boxes, as well as flash-based embedded storage products for mobile phones, tablets, notebook PCs and other portable and wearable devices, automotive applications, Internet of Things, and industrial and connected home applications.”

Annual report 2026A · The company itself

“Sales and Distribution We sell our products to computer manufacturers and OEMs, cloud service providers, resellers, distributors and retailers throughout the world.”

Annual report 2026A · The company itself

“In addition, climate change and financial reform legislation is a significant topic of discussion and has generated and may continue to generate federal, international or other regulatory responses in the near future, which could substantially increase the complexity of our disclosure requirements and our compliance and operating costs.”

Annual report 2026A · The company itself

“Where matters, or aspects of a matter, are determined to be material, we may announce initiatives and goals to mitigate such risks from time to time, for example, our intentions regarding operational energy use and efficiency as reflected in Sandisk’s commitment to net zero emissions by 2040.”

Annual report 2026A · The company itself

“Through the Edge end market, we provide our original equipment manufacturer (“OEM”) and channel customers a broad array of high-performance flash solutions across personal computer, mobile, gaming, automotive, physical AI, at-home entertainment, and industrial spaces.”

Annual report 2026A · The company itself

“Through the Edge end market, we provide numerous data solutions that we incorporate into our client’s devices, which consist of SSDs for desktop and notebook PCs, gaming consoles and set top boxes, as well as flash-based embedded storage products for mobile phones, tablets, notebook PCs and other portable and wearable devices, automotive applications, Internet of Things, and industrial and connected home applications.”

Annual report 2026A · The company itself

“We serve the Consumer end market with a portfolio of SSDs and removable flash products, including cards and universal serial bus flash drives, through our retail and channel routes to market.”

Annual report 2026A · The company itself

“Sales and Distribution We sell our products to computer manufacturers and OEMs, cloud service providers, resellers, distributors and retailers throughout the world.”

Annual report 2026A · The company itself

“We may be adversely affected by the risks, challenges, and evolving regulatory landscape associated with the use of AI in our operations, product development, and business practices. We are increasingly leveraging AI technologies, including generative AI applications and tools, to support and enhance our various operational processes. While AI may promote efficiency and offer analytical advantages, it is complex and rapidly-changing, and its implementation carries inherent risks.”

Annual report 2026A · The company itself

“Through the Edge end market, we provide numerous data solutions that we incorporate into our client’s devices, which consist of SSDs for desktop and notebook PCs, gaming consoles and set top boxes, as well as flash-based embedded storage products for mobile phones, tablets, notebook PCs and other portable and wearable devices, automotive applications, Internet of Things, and industrial and connected home applications.”

Annual report 2026A · The company itself

“Fewer companies now hold greater market share for certain applications and services, such as cloud storage and computing platforms, mobile, social media, shopping and streaming media. As a result, the competitive landscape is changing, giving these companies increased leverage in negotiating prices and other terms of sale, which could negatively impact our profitability.”

Annual report 2026A · The company itself

“Fewer companies now hold greater market share for certain applications and services, such as cloud storage and computing platforms, mobile, social media, shopping and streaming media. As a result, the competitive landscape is changing, giving these companies increased leverage in negotiating prices and other terms of sale, which could negatively impact our profitability.”

Annual report 2026A · The company itself

“The Consumer end market is highlighted by our broad range of retail and other end-user products, which capitalize on the strength of our product brand recognition and vast presence around the world.”

Annual report 2026A · The company itself

“Some of our OEM customers have adopted a subcontractor model that requires us to contract directly with companies, such as original design manufacturers, that provide manufacturing and fulfillment services to our OEM customers. Because these subcontractors are generally not as well capitalized as our direct OEM customers, this subcontractor model exposes us to increased credit risks.”

Annual report 2026A · The company itself

“We have entered into long-term agreements with certain customers, which we also refer to as New Business Models or “NBMs”, that commit us to deliver, and our customers to purchase, a stated volume of products, mostly over multi-year periods. Our ability to fulfill our obligations under these agreements depends on a number of factors, including our manufacturing capacity, production yields, supply chain performance, and the availability of raw materials and other critical inputs.”

Annual report 2026A · The company itself

“A large portion of our revenue is derived from our international operations, and substantially all of our products are produced overseas. As a result, our business depends significantly on global and regional conditions.”

Annual report 2026A · The company itself

“Our suppliers have in the past been, and may in the future be, unable or unwilling to meet our requirements, including as a result of events outside of their control such as trade restrictions (including tariffs, quotas, sanctions, and embargoes), supply chain shortages, labor disputes, geopolitical conflicts, industrial accidents, cybersecurity incidents, public health emergencies or natural disasters. If we are unable to purchase sufficient quantities from our current suppliers or qualify and engage additional suppliers, or if we cannot purchase materials at a reasonable price, we may not be able to meet demand for our products.”

Annual report 2026A · The company itself

“While multi-year agreements with certain customers provide increased visibility into future demand and may reduce forecasting uncertainty for portions of our business, our ability, as well as our customers’ and suppliers’ ability, to accurately forecast demand, remains difficult due to volatility in global economic conditions, evolving end market dynamics, customer deployment schedules, and industry consolidation. Further, for many of our OEM customers utilizing just-in-time inventory, we do not generally require firm order commitments and instead receive a periodic forecast of requirements, which may prove to be inaccurate.”

Annual report 2026A · The company itself

“We are dependent on a limited number of qualified suppliers who provide critical services, materials or components, and a disruption in our supply chain or other inability to source our supply requirements, or an increase in the costs of materials or components, could negatively affect our business.”

Annual report 2026A · The company itself

“The increase in computing complexity and advancements in AI, along with growth in cloud computing applications, connected mobile devices and Internet-connected products, and edge devices are driving substantial growth in the volume of digital content to be stored and used.”

Annual report 2026A · The company itself

“Our operating results may fluctuate due to changes in demand, industry cycles and the timing of customer deployments, including AI-related data center investments, and our ability to accurately forecast demand as a result of these changing market conditions. Sales of certain of our products tend to be seasonal and subject to supply-demand cycles.”

Annual report 2026A · The company itself

“Additionally, as we attempt to expand our OEM and distribution channel sales into emerging economies, the customers with the most success in these regions may have relatively short operating histories, making it more difficult for us to accurately assess the associated credit risks. Our customers’ credit risk may also be exacerbated by an economic downturn or other adverse global or regional economic conditions.”

Annual report 2026A · The company itself

“Our increasing use of AI, including generative AI, agentic AI and AI-enabled automation technologies, may elevate the risk of cybersecurity incidents, whether through our authorized use of such technologies to perform business or operational tasks with limited human oversight or through malicious use by threat actors to automate, scale or adapt attacks against our systems, products, employees, customers, suppliers or partners. These technologies may be leveraged by threat actors to generate more convincing phishing or social engineering content, identify and exploit vulnerabilities more efficiently, create malicious code that is more difficult to detect, or automate, scale, adapt or obscure cyberattacks. In addition, AI systems may inadvertently expose sensitive information if not properly secured, governed, configured, monitored, or connected to systems or data containing confidential information.”

Annual report 2026A · The company itself

“Table of Contents Our products are also targets for malicious cybersecurity acts. While some of our products contain encryption or security algorithms to protect third-party content or user-generated data stored on our products, these products could still be hacked or the encryption schemes could be compromised, breached or circumvented by motivated and sophisticated attackers, which could harm our business by exposing us to litigation and indemnification claims and hurting our reputation.”

Annual report 2026A · The company itself

“LEGAL AND COMPLIANCE RISKS We are subject to laws, rules and regulations relating to the collection, use, transfer, sharing and security of data, including personal data, and our failure to comply with these laws, rules and regulations could subject us to proceedings by governmental entities or others and cause us to incur penalties, significant legal liability or loss of customers, loss of revenue and reputational harm. We are subject to privacy laws, rules and regulations relating to how we collect, use, transfer, and secure third-party data, including data that relates to or identifies an individual person.”

Annual report 2026A · The company itself

“As a result, a failure to accurately forecast supply and demand could cause us to over-invest or under-invest in inventory, technology transitions or the expansion of Flash Ventures’ capacity. Over-investment by us or our competitors can result in excess supply and lead to significant decreases in 18 Table of Contents our product prices, significant excess, obsolete inventory or inventory write-downs or underutilization charges, and the potential impairment of our investments in Flash Ventures.”

Annual report 2026A · The company itself

“If a customer were to breach its purchase obligations, or if we were to breach our obligations and a customer were to terminate or reduce its volume commitments, we may need to find alternative customers for any affected product volumes. Depending on market conditions at the time, we may be unable to resell those products at comparable prices, or at all, which could result in reduced revenue, lower margins, excess inventory, or manufacturing underutilization or asset impairment charges.”

Annual report 2026A · The company itself

“When we do have contractual commitments with suppliers in an effort to stabilize the supply of our components, those commitments may require us to buy a substantial number of components or make significant cash advances to the supplier and may not result in a satisfactory supply of our components.”

Annual report 2026A · The company itself

“Because we manufacture our products overseas and sell a large portion of our products abroad, fluctuations in foreign currency exchange rates affect our revenue, cost of revenue, margins, operating costs and cash flows. If the U.S. dollar experiences sustained weakness against certain foreign currencies, the U.S. dollar equivalents of unhedged manufacturing costs could increase because a significant portion of our production costs are foreign-currency denominated. Conversely, there would not be an offsetting impact to revenues since revenues are substantially U.S. dollar denominated.”

Annual report 2026A · The company itself

“Prices for our products are substantially U.S. dollar denominated, even when sold to customers that are located outside the U.S. Therefore, as a substantial portion of our sales are from countries outside the U.S., fluctuations in currency exchanges rates, most notably the strengthening of the U.S. dollar against other foreign currencies, contribute to variations in sales of products in impacted jurisdictions and could negatively impact demand and revenue growth.”

Annual report 2026A · The company itself

“In addition, currency variations may adversely affect margins on sales of our products in countries outside the U.S.”

Annual report 2026A · The company itself

“If a fire (including a climate change-related fire), flood, earthquake, tsunami or other natural disaster, condition or event such as power outage, contamination event, water scarcity, terrorist attack, cybersecurity incident, physical security breach, political instability, act of war, civil unrest, localized labor unrest, or a public health crisis or epidemic negatively affects any of these facilities or regions, it could significantly disrupt the supply of wafers, components, equipment or services; impair customer demand; significantly affect our ability to manufacture or sell our products; or otherwise materially adversely affect our business and financial results.”

Annual report 2026A · The company itself

“We maintain limited insurance coverage and, in some cases, no coverage at all, for natural disasters and damage to our facilities, as these types of insurance are sometimes not available or available only at a prohibitive cost. Climate change may reduce the availability or increase the cost of certain types of insurance by contributing to an increase in the incidence and severity of certain natural disasters.”

Annual report 2026A · The company itself

“Our suppliers have in the past been, and may in the future be, unable or unwilling to meet our requirements, including as a result of events outside of their control such as trade restrictions (including tariffs, quotas, sanctions, and embargoes), supply chain shortages, labor disputes, geopolitical conflicts, industrial accidents, cybersecurity incidents, public health emergencies or natural disasters. If we are unable to purchase sufficient quantities from our current suppliers or qualify and engage additional suppliers, or if we cannot purchase materials at a reasonable price, we may not be able to meet demand for our products.”

Annual report 2026A · The company itself

“If a fire (including a climate change-related fire), flood, earthquake, tsunami or other natural disaster, condition or event such as power outage, contamination event, water scarcity, terrorist attack, cybersecurity incident, physical security breach, political instability, act of war, civil unrest, localized labor unrest, or a public health crisis or epidemic negatively affects any of these facilities or regions, it could significantly disrupt the supply of wafers, components, equipment or services; impair customer demand; significantly affect our ability to manufacture or sell our products; or otherwise materially adversely affect our business and financial results.”

Annual report 2026A · The company itself

“Together with Kioxia, we have funded, and may continue to fund, a portion of the investments required for Flash Ventures through lease financings. Continued availability of lease financings for Flash Ventures is not guaranteed and could be limited by several factors, including investor capacity and risk allocation policies, our or Kioxia’s financial performance, changes to our or Kioxia’s financing strategy, business, ownership or corporate structure and the availability of tools and equipment eligible for lease financing.”

Annual report 2026A · The company itself

“We guarantee a significant amount of lease and other financial obligations of Flash Ventures owed to third parties. In particular, Flash Ventures sells to and leases back a portion of its equipment from a consortium of financial institutions. All of the lease obligations are guaranteed 50% by us and 50% by Kioxia.”

Annual report 2026A · The company itself

“Because we manufacture our products overseas and sell a large portion of our products abroad, fluctuations in foreign currency exchange rates affect our revenue, cost of revenue, margins, operating costs and cash flows. If the U.S. dollar experiences sustained weakness against certain foreign currencies, the U.S. dollar equivalents of unhedged manufacturing costs could increase because a significant portion of our production costs are foreign-currency denominated. Conversely, there would not be an offsetting impact to revenues since revenues are substantially U.S. dollar denominated.”

Annual report 2026A · The company itself

“In addition, our purchases of flash-based memory from Flash Ventures and our investment in Flash Ventures are denominated in Japanese yen. If the Japanese yen appreciates against the U.S. dollar, our cost of purchasing flash-based memory wafers and the cost to us of future capital funding of Flash Ventures would increase.”

Annual report 2026A · The company itself

“We do not have long-term contracts with some of our existing suppliers, nor do we always have guaranteed manufacturing capacity with many of our suppliers, so we cannot guarantee that they will devote sufficient resources or capacity to manufacturing our products. Any significant problems that occur at our suppliers could lead to product shortages or quality assurance problems.”

Annual report 2026A · The company itself

“Where we rely on a limited number of suppliers or a single supplier, the risk of supplier loss due to industry consolidation or a decline in financial performance is increased.”

Annual report 2026A · The company itself

“Our operating results may fluctuate due to changes in demand, industry cycles and the timing of customer deployments, including AI-related data center investments, and our ability to accurately forecast demand as a result of these changing market conditions. Sales of certain of our products tend to be seasonal and subject to supply-demand cycles.”

Annual report 2026A · The company itself

“Changes in tax laws in the United States, the European Union and around the globe have impacted and will continue to impact our effective worldwide tax rate, which may materially affect our financial position and results of operations. Further, the majority of countries in the G20 and Organization for Economic Cooperation and Development Inclusive Framework on Base Erosion and Profit Shifting have agreed to adopt a two-pillar approach to taxation, which includes the implementation of a global corporate minimum tax rate of 15%, which has become effective in certain jurisdictions and materially increase our tax obligations in these countries.”

Annual report 2026A · The company itself

“Our success depends on our ability to attract, retain and develop highly skilled management and technical talent. The success of our business depends on our ability to attract, retain, and develop highly skilled management and technical talent capable of advancing NAND technology in an increasingly complex and competitive global environment. The rapid pace of innovation driven by AI, global research and development competition, evolving models of work, and intensifying customer demands for faster, more efficient solutions has significantly raised the bar for the technical expertise required to power current and next-generation technologies. As a result, acquiring and retaining such talent has become increasingly difficult.”

Annual report 2026A · The company itself

“If a fire (including a climate change-related fire), flood, earthquake, tsunami or other natural disaster, condition or event such as power outage, contamination event, water scarcity, terrorist attack, cybersecurity incident, physical security breach, political instability, act of war, civil unrest, localized labor unrest, or a public health crisis or epidemic negatively affects any of these facilities or regions, it could significantly disrupt the supply of wafers, components, equipment or services; impair customer demand; significantly affect our ability to manufacture or sell our products; or otherwise materially adversely affect our business and financial results.”

Annual report 2026A · The company itself

“Finally, the semiconductor memory chip and data storage industries have experienced consolidation over the past several years, which could enhance the resources and lower the cost structure of some competitors.”

Annual report 2026A · The company itself

“Additionally, if there is consolidation among our customer base, our customers may be able to command increased leverage in negotiating prices and other terms of sale, which could negatively impact our profitability. Consolidation among our customer base may also lead to reduced demand for our products, increased customer pressure on our prices, replacement of our products by the combined entity with those of our competitors and cancellations of orders, each of which could harm our operating results.”

Annual report 2026A · The company itself

“Table of Contents In addition, our supply base has experienced industry consolidation. Our suppliers may be acquired by our competitors, decide to exit the industry or redirect their investments and increase costs to us.”

Annual report 2026A · The company itself

“Constraints on global talent mobility and hiring, including changes in immigration laws and policies, travel restrictions, work permits regulation and administration, government restrictions to contain the spread of infectious disease, and limitations on the ability of employees to enter, leave, or return to jurisdictions in which we operate, may also affect our ability to attract and retain the specialized skills needed to support our business and may disrupt our operations.”

Annual report 2026A · The company itself

“We are subject to, and may become subject to additional, U.S. state and federal, and international laws and regulations governing our environmental, labor, trade, financial transactions, health and safety practices and public-company reporting and disclosures requirements. These laws and regulations, particularly those applicable to our international operations, are or may be complex, extensive and subject to change. Implementing compliance with such laws and regulations may result in an increase in our operating costs, and failure to comply with such laws and regulations could also lead to significant liabilities.”

Annual report 2026A · The company itself

“We may also have difficulty effectively competing with manufacturers benefiting from governmental investments and may be subject to increased complexity and reduced efficiency in our supply chain as a result of governmental efforts to promote domestic semiconductor industries in various jurisdictions.”

Annual report 2026A · The company itself

“We may experience events such as the loss of a key customer, prohibition or restriction of sales to a key customer by law, regulation or other government action, reductions in sales to or orders by a key customer, reductions in customer demand due to technological changes, or customer requirements to reduce our prices before we are able to reduce costs or the acquisition of a key customer by one of our competitors.”

Annual report 2026A · The company itself

“In addition, some of our components have long lead-times, requiring us to place orders several months in advance of anticipated demand. Such long lead-times increase the risk of excess inventory, potentially resulting in inventory write-downs or loss of sales in the event our forecasts vary substantially from actual demand.”

Annual report 2026A · The company itself

“Together with Kioxia, we have funded, and may continue to fund, a portion of the investments required for Flash Ventures through lease financings. Continued availability of lease financings for Flash Ventures is not guaranteed and could be limited by several factors, including investor capacity and risk allocation policies, our or Kioxia’s financial performance, changes to our or Kioxia’s financing strategy, business, ownership or corporate structure and the availability of tools and equipment eligible for lease financing.”

Annual report 2026A · The company itself

“Further, our average selling prices and gross margins tend to decline when there is a meaningful shift in the mix of product sales to lower priced products. We have faced declining gross margins relating to our business in the past, and may face potential gross margin pressures in the future, resulting from our average selling prices declining more rapidly than our cost of revenue.”

Annual report 2026A · The company itself

“We maintain limited insurance coverage and, in some cases, no coverage at all, for natural disasters and damage to our facilities, as these types of insurance are sometimes not available or available only at a prohibitive cost. Climate change may reduce the availability or increase the cost of certain types of insurance by contributing to an increase in the incidence and severity of certain natural disasters.”

Annual report 2026A · The company itself

“We may also have difficulty effectively competing with manufacturers benefiting from governmental investments and may be subject to increased complexity and reduced efficiency in our supply chain as a result of governmental efforts to promote domestic semiconductor industries in various jurisdictions.”

Annual report 2026A · The company itself

“In addition, some of our components have long lead-times, requiring us to place orders several months in advance of anticipated demand. Such long lead-times increase the risk of excess inventory, potentially resulting in inventory write-downs or loss of sales in the event our forecasts vary substantially from actual demand.”

Annual report 2026A · The company itself

“Our international sales, which include sales to foreign subsidiaries of U.S. companies but do not include sales to U.S. subsidiaries of foreign companies, represented 82%, 80% and 86% of our net revenue for 2026, 2025 and 2024, respectively.”

Annual report 2026A · The company itself

“As of July 2026, our global team includes approximately 11,100 employees across 33 countries— 74% in Asia Pacific, 19% in the Americas, and 7% in Europe, the Middle East, and Africa.”

Annual report 2026A · The company itself

“We conduct our operations at large, high-volume, purpose-built facilities in Japan, Malaysia and other locations in Asia. The facilities of many of our customers, our suppliers and our customers’ suppliers are also concentrated in certain geographic locations throughout Asia and elsewhere.”

Annual report 2026A · The company itself

“Our international sales, which include sales to foreign subsidiaries of U.S. companies but do not include sales to U.S. subsidiaries of foreign companies, represented 82%, 80% and 86% of our net revenue for 2026, 2025 and 2024, respectively.”

Annual report 2026A · The company itself

“Segment Reporting The Company develops, manufactures, markets, and sells data storage devices and solutions based on NAND flash technology in the U.S. and in foreign countries through its sales personnel, dealers, distributors, retailers, and subsidiaries.”

Annual report 2026A · The company itself

“Our international sales, which include sales to foreign subsidiaries of U.S. companies but do not include sales to U.S. subsidiaries of foreign companies, represented 82%, 80% and 86% of our net revenue for 2026, 2025 and 2024, respectively.”

Annual report 2026A · The company itself

“Segment Reporting The Company develops, manufactures, markets, and sells data storage devices and solutions based on NAND flash technology in the U.S. and in foreign countries through its sales personnel, dealers, distributors, retailers, and subsidiaries.”

Annual report 2026A · The company itself

“The Unis Venture is 48% owned by the Company and 52% owned by Unis. The Unis Venture markets and sells the Company’s products in China.”

Annual report 2026A · The company itself