Monolithic Power Systems (MPWR): what its 10-K says it depends on

Customers

Top three distributors

earns from · 54%, 61% and 55% of our revenuenamed as a risk

Specifically, our top three customers, all of which are distributors, accounted for an aggregate of 54%, 61% and 55% of our revenue in the years ended December 31, 2025, 2024 and 2023, respectively.Risk factors (Item 1A)

Enterprise data end market

earns from · 25.2%

Storage and computing was our largest end market in 2025, closely followed by enterprise data.Business (Item 1)

Storage and computing end market

earns from · 26.3%

Storage and computing was our largest end market in 2025, closely followed by enterprise data.Business (Item 1)

Suppliers

Wafer foundries

depends onnamed as a risk

This lack of capacity has at times constrained our product sales and revenue growth.Risk factors (Item 1A)

Assembly and test subcontractors

depends onnamed as a risk

We do not have direct control over product delivery schedules or product quality because all of our products are assembled by third-party subcontractors and a portion of our testing is currently performed by third-party subcontractors.Risk factors (Item 1A)

Competitors

Texas Instruments

competes with

We consider our primary competitors to include Analog Devices, Infineon Technologies, NXP Semiconductors, ON Semiconductor, Power Integrations, Renesas Electronics, ROHM Semiconductor, Semtech, STMicroelectronics and Texas Instruments.Business (Item 1)

Also named by RMBS

Infineon Technologies

competes with

We consider our primary competitors to include Analog Devices, Infineon Technologies, NXP Semiconductors, ON Semiconductor, Power Integrations, Renesas Electronics, ROHM Semiconductor, Semtech, STMicroelectronics and Texas Instruments.Business (Item 1)

Also named by LFUS

Analog Devices

competes with

We consider our primary competitors to include Analog Devices, Infineon Technologies, NXP Semiconductors, ON Semiconductor, Power Integrations, Renesas Electronics, ROHM Semiconductor, Semtech, STMicroelectronics and Texas Instruments.Business (Item 1)

Places

Asia

concentrated in · 92% of our total revenuenamed as a risk

For the year ended December 31, 2025, 92% of our total revenue was from customers in Asia.Risk factors (Item 1A)

Also named by AAPL, AYI, CART, CB, CDW, CHD, CLS, COHR and 31 more

China

depends onnamed as a risk

A significant portion of our manufacturing, testing, assembly and packaging capacity comes from key suppliers located in China.Risk factors (Item 1A)

Also named by A, AA, AAOI, AAP, AAPL, AB, ADI, AEHR and 261 more

Taiwan

operates innamed as a risk

We have significant business operations in Taiwan, and many of our manufacturing partners, suppliers and customers are located in Taiwan.Risk factors (Item 1A)

Also named by AAOI, AAPL, AB, ADI, AEHR, ALAB, AMAT, AMD and 50 more

Hong Kong

earns fromnamed as a risk

In addition, the Chinese government has promulgated various laws and regulations impacting economic and political stability within Hong Kong where many of our customers are located.Risk factors (Item 1A)

Also named by CG, DECK, EWBC, EXPD, LZB, MCO, MXL, NVDA and 1 more

Chengdu, China

operates innamed as a risk

changes in tax regulations in China that may impact our tax status in Chengdu, Hangzhou and other regions where we have significant operations;Risk factors (Item 1A)

Also named by CYRX

Hazards

Earthquakes

operates innamed as a risk

We do not maintain earthquake insurance and could be materially and adversely affected in the event of a major earthquake.Risk factors (Item 1A)

Also named by AAPL, AMKR, AN, ANET, APP, BRO, CDNS, CEG and 37 more

Commodities and inputs

Copper

exposed to its pricenamed as a risk

The price and availability of commodities used in our products, such as gold, copper and silicon, may adversely impact our ability to deliver our products in a timely and cost-effective manner, and may adversely affect our business and results of operations.Risk factors (Item 1A)

Also named by AAON, AGX, AMKR, APG, APH, APLD, BMI, BWA and 58 more

Gold

exposed to its pricenamed as a risk

The price and availability of commodities used in our products, such as gold, copper and silicon, may adversely impact our ability to deliver our products in a timely and cost-effective manner, and may adversely affect our business and results of operations.Risk factors (Item 1A)

Also named by AMKR, APH, BLK, CDE, DC, EZPW, FCFS, FCX and 10 more

Silicon

exposed to its pricenamed as a risk

The price and availability of commodities used in our products, such as gold, copper and silicon, may adversely impact our ability to deliver our products in a timely and cost-effective manner, and may adversely affect our business and results of operations.Risk factors (Item 1A)

Also named by ENPH

Renminbi

exposed to its pricenamed as a risk

If the value of the Renminbi rises against the U.S. Dollar, there could be an increase in our manufacturing costs relative to competitors who have manufacturing facilities located outside China, which could adversely affect our financial results and operations.Risk factors (Item 1A)

Regulators

Chinese government

subject tonamed as a risk

Any of these incentives could be reduced or eliminated by governmental authorities at any time, which could materially and adversely affect our business and operating results.Risk factors (Item 1A)

Also named by QCOM

Laws and programs

OECD Pillar Two global minimum tax

subject to · 15%named as a risk

The impact on our provision for income taxes, net income, and cash flows could be materially impacted by the global minimum tax of 15% in jurisdictions where we have significant business operations.Risk factors (Item 1A)

Also named by ABNB, ACN, ADI, ADM, ADSK, AKAM, ALB, AMAT and 70 more

Foreign subsidiary ten-year tax incentive

subject to · $1.1 billionnamed as a risk

A deferred tax benefit of $1.1 billion, net of $0.2 billion of deferred tax liability and $0.1 billion of valuation allowance, was recorded in the year ended December 31, 2024 to reflect the estimated future reductions in cash tax paid in that jurisdiction associated with the incentive.Risk factors (Item 1A)

U.S. Foreign Corrupt Practices Act (FCPA)

subject tonamed as a risk

We have significant operations in Asia, which place us in frequent contact with individuals who may be considered “foreign officials” under the FCPA or other anti-corruption laws, resulting in an elevated risk of potential violations.Risk factors (Item 1A)

Also named by A, ADBE, ADP, AIR, AJG, ALB, AME, AMZN and 112 more

U.S. Export Administration Regulations

subject tonamed as a risk

Our business is subject to various significant laws and other legal requirements imposed by the U.S. and other countries we conduct business in, including export control laws such as the Export Administration Act, the Export Administration Regulations and other laws, regulations and requirements governing international trade, investments and technology transfers.Risk factors (Item 1A)

Also named by ADI, ALAB, AMD, APP, ARW, AVGO, CARR, CDRE and 40 more

U.S. Uyghur Forced Labor Prevention Act

subject tonamed as a risk

We are also subject to increasing regulatory and compliance requirements related to labor and human rights within our supply chain, including the responsible sourcing of conflict minerals and the prohibition of conducting business with certain suppliers under the U.S. Uyghur Forced Labor Prevention Act.Risk factors (Item 1A)

Also named by AMRC, ANET, ASO, CROX, DDS, FND, FSLR, LULU and 7 more

CHIPS Act

named as a risk

Because we operate a fabless business model, we are not eligible for such investments.Risk factors (Item 1A)

Also named by INTC, MTSI, MU

U.S. tariffs on Chinese goods

subject tonamed as a risk

If these tariffs continue or additional tariffs are imposed in the future, they could have a negative impact on us as we have significant operations in China and the U.S.Risk factors (Item 1A)

U.S. Harmonized Tariff System

subject tonamed as a risk

Additionally, the imposition of tariffs is dependent upon the classification of goods under the U.S. Harmonized Tariff System (“HTS”) and the country of origin of the goods.Risk factors (Item 1A)

U.S. AI export restrictions

subject tonamed as a risk

Any of such regulatory restrictions could, in turn, impact the sales of our products supporting AI applications.Risk factors (Item 1A)