8226; Diodes Incorporated is also C-TPAT certified. &# in Part I, Item 1A of this Annual Report for additional information. We sell product primarily through our operations in Asia, North America and Europe. The rate of booking of new orders can vary significantly from month to month. We may have a significant amount of debt with various financial institutions worldwide. Our business benefits from certain Chinese government incentives. There are risks associated with previous and future acquisitions. We were formed in 1959, and our early corporate records are incomplete. 12 - Certificate of Incorporation and Bylaw Provisions may deter a take-over attempt. 14 - The semiconductor industry in which we operate is highly competitive. Difficulties in the manufacturing process can lower yields. This qualification process may continue for six months or longer. In addition, we are focusing more on the automotive and industrial markets. New products often command higher prices and, as a result, higher profit margins. 17 - Part of our growth strategy involves identifying and acquiring companies. Any prior years that have already been approved are subject to audit requirements. Therefore, the plan was underfunded by approximately $27.4 million. In addition, the majority of our manufacturing facilities are located in China. 27 - We are subject to foreign currency risk as a result of our international operations.
