Diodes Profile
Diodes Incorporated, together with its subsidiaries, operates as a global manufacturer and supplier of high-quality application-specific standard products within the broad discrete, logic, analog, and mixed-signal semiconductor markets. The company serves the industrial, automotive, computing, communications and consumer markets.
The company’s products include diodes; rectifiers; transistors; MOSFETs; Silicon Carbide (‘SiC’) diodes and MOSFETs; protection devices; logic; photocoupler; voltage translators; amplifiers and comparators; sensors; and power management devices, such as AC-DC converters, DC-DC switching, linear voltage regulators, voltage references, LED drivers, power switches, and voltage supervisors. The company also has timing and connectivity solutions, including clock ICs, crystal oscillators, PCIe packet switches, multi-protocol switches, interface products, and signal integrity solutions for high-speed signals.
The company’s market focus is on high-growth, end-user applications in the following areas:
Industrial: Embedded systems, precision controls, and Artificial Intelligence of Things (‘AIoT’);
Automotive: Connected driving, comfort/style/safety, and electrification/powertrain;
Computing: Cloud computing, including artificial intelligence servers, storage, and data center applications;
Communications: Smartphones, 5G networks, advanced protocols, and charging solutions; and
Consumer: IoT, wearables, home automation, and smart infrastructure.
The company’s product line includes over 28,000 products. The company shipped approximately 42 billion units in 2023.
The company operates in a single segment, standard semiconductor products, through the company’s various design, manufacturing, and distribution facilities. The company sells product primarily through its operations in Asia, the Americas, and Europe.
The company’s customers are consisted of leading direct sales customers, as well as major electronic manufacturing services (‘EMS’) providers. The company serves over 50,000 customers worldwide. The majority or the company’s customers are served through its distribution network and some are direct customers who purchase directly from the company.
The company conducts business with the following related parties: Keylink International (B.V.I.) Inc. and its subsidiaries and affiliates (‘Keylink’), Nuvoton Technology Corporation (‘Nuvoton’) and Jiyuan Crystal Photoelectric Frequency Technology Ltd. (‘JCP’).
Keylink is a 5% joint venture partner in the company’s Shanghai assembly and test facilities. The company sells products to, and purchase inventory from, companies owned by Keylink. In addition, the company’s subsidiaries in China lease their manufacturing facilities in Shanghai from, and subcontract a portion of the company’s manufacturing process (metal plating and environmental services) to, Keylink. The company also pays a consulting fee to Keylink.
The company purchases wafers from Nuvoton for use in its production process.
JCP is an FCP manufacturing company from which the company purchases material and in which the company has made an equity investment.
Atlas Magnetics (‘Atlas’) is an early stage privately held fabless wafer design company in which the company holds a majority equity interest. The company determined that Atlas is a variable interest entity (‘VIE’) and that Atlas is a related party.
The company considers its relationships with Keylink, Nuvoton, JCP and Atlas to be mutually beneficial and plans to continue these strategic alliances.
Strategy
The principal elements of the company’s strategy are to continue to rapidly introduce innovative discrete, logic, analog and mixed-signal semiconductor products; expand the company’s available market opportunities; maintain intense customer focus; enhance manufacturing flexibility; and pursue selective strategic acquisitions.
Products
The company’s market focus is on high-growth, end-user applications in the following areas:
Discrete semiconductor products, including MOSFETs (SiC MOSFETs); protection devices (data line protection, power line protection, thyristers, USB Type-C protection, and transient voltage suppressors); diodes (Schottky diodes, small signal switching diodes, Zener diodes, and SiC diodes); rectifiers (bridges, super barrier rectifiers, Schottky rectifiers, Schottky bridge rectifiers, and fast/ultra-fast rectifiers); and bipolar transistors (avalanche transistors, gate driver transistors, and pre-bias transistors).
Analog products, including power management devices, such as AC-DC and DC-DC converters, USB power switches, low dropout, photocoupler and linear voltage regulators; standard linear devices, such as operational amplifiers and comparators, current monitors, voltage references, and reset generators; LED lighting drivers; audio amplifiers; and sensor products, including Hall-effect sensors and motor drivers.
Mixed-signal products, including high speed mux/demux, digital switches, interface, redrivers, universal level shifters/voltage translators, clock ICs and packet switches.
Standard logic products, including low-voltage complementary metal-oxide-semiconductor (‘CMOS’) and advanced high-speed CMOS devices; ultra-low power CMOS logic; and analog switches.
Multichip products and co-packaged discrete, analog and mixed-signal silicon in miniature packages.
Silicon and silicon epitaxial wafers used in manufacturing these products.
Frequency Control Products (‘FCP’) used in many of advanced electronic systems. FCPs are electronic components that provide frequency references, such as crystals and crystal oscillators for automotive, industrial, computing, communication and consumer electronic products.
Contact Image Sensor (CIS) an input device widely applied on, among other things, high-speed copy machines, check scanners, banknote identification validators (ATM and banknote detectors) and industrial inspection equipment (AOI/AVI). The company offers integrated sensor IC, illumination, and rod lenses to form the CIS module.
Product Packaging
The company’s device packaging technology includes a wide variety of surface-mounted packages. The company’s focus on the development of smaller, more thermally efficient, and increasingly integrated packaging, is a critical component of the company’s product development. The company provides a comprehensive offering of miniature high power density packaging, enabling the company to fit its components into smaller and more efficient packages, while maintaining the same device functionality and power handling capabilities. Smaller packaging provides a reduction in the height, weight and board space required for the company’s components. The company’s products are well suited for broad applications in the industrial, automotive, computing, communications and consumer applications.
Customers
The company serves over 50,000 customers worldwide. The majority of the company’s customers are served through its distribution network and some are direct customers who purchase directly from the company. The company’s customers represent leading direct sales customers representing a broad range of industries, leading EMS providers and leading distributors. For the twelve months ended December 31, 2023, the company’s direct sales and EMS customers together accounted for 32% of the company’s net sales.
The company’s relationships with its customers have provided the company with deeper insight into its customers’ product needs. In addition to seeking to expand relationships with the company’s existing customers, the company’s strategy is to pursue new customers and diversify the company’s customer base by focusing on leading global consumer electronics companies and their EMS providers and distributors.
Sales and Marketing
The company markets and sells its products worldwide through a combination of direct sales and marketing personnel, independent sales representatives and distributors. The company has direct sales personnel in the U.S., the U.K., France, Germany, Italy, South Korea, Japan, Hong Kong, Taiwan, Turkey, and China. The company also has independent sales representatives in the U.S. and Europe. In addition, the company has distributors in the U.S., Asia, and Europe. The company has sales and marketing offices or representatives in Taipei, Taiwan; Shanghai, Shenzhen, Wuhan, Guangzhou, Jinan, and Qingdao, China; Seongnam-si, South Korea; Munich and Frankfurt, Germany; Oldham, England; Tokyo, Japan; Milpitas, California and Plano, Texas, the U.S.A. As of December 31, 2023, the company also had more than 15 independent sales representative firms marketing its products.
The company’s marketing group works with its sales and research and development teams to align the company’s product development roadmap. The company’s marketing group coordinates its efforts with its product development, operations and sales groups, as well as with the company’s customers, sales representatives and distributors. The company supports its customers through its global field application engineering and customer support organizations.
Competition
Some of the company’s larger competitors include Infineon Technologies A.G., Epson, Kyocera, Nexperia, NXP Semiconductors N.V., ON Semiconductor Corporation, Renesas Electronics Corporation, Texas Instruments, and Vishay Intertechnology, Inc.
Seasonality
Historically, the company’s net sales have been affected by the cyclical nature of the semiconductor industry, whereby typically the fourth quarter (year ended December 2023) is the quarter of the calendar year with the smallest revenue. In addition, the company’s net sales have been subject to some additional seasonal variation with weaker net sales in the first quarter.
History
Diodes Incorporated was incorporated in 1959 in California and reincorporated in Delaware in 1968.
