SemiLEDs Corp

Risk Management and Strategy

We have dedicated to advance our cybersecurity risk management and integrated it into our overall risk management program, which program manages cybersecurity, financial, operational and compliance risks. To access, identify and manage cybersecurity threats, we implemented a cybersecurity risk management program with oversight by our Board of Directors (“Board”). Our management, led by an experienced information security team, continually monitors cybersecurity risk incidents.

Our cybersecurity risk management program sets forth a framework provided by our information security team to identify and mitigate vulnerabilities and risks in our information systems. Elements of the program include, among the other things, penetration tests on our networks and engaging in annual employee cybersecurity training.

We have engaged a third-party service provider periodically to review and improve our cybersecurity risk management framework, including by identifying third-parties information systems that could cause cybersecurity incidents to our business.

Governance

Our information security team, including our system engineering department leader who manages our information technology, is responsible for accessing and managing cybersecurity operations and incident response, reports cybersecurity incidents to management and, if the incidents are material, our audit committee. The members of our information security team each have over 10 years of experience and extensive knowledge in managing cybersecurity programs.

Our Audit Committee assists the Board in overseeing cybersecurity risks, including discussing with management and the information security team if cybersecurity threats are identified, and recommends cybersecurity framework improvements to the Board.