DIODES INC /DEL/ (DIOD)

Diodes Incorporated (Nasdaq: DIOD) is a global manufacturer and supplier of application-specific standard semiconductor products in the discrete, logic, analog and mixed-signal markets. The company is headquartered in Plano, Texas, and is a member of the S&P SmallCap 600 and Russell 3000 indices. Net sales grew from $1.2 billion in 2018 to $2.0 billion in 2022, and rose 10.8% in 2022. Its stated goal is $1.0 billion in gross profit on $2.5 billion in revenue, at a 40% gross margin, by 2025. The strategy centers on rapid new product introduction, expanding its addressable markets, close customer collaboration, low-cost and flexible manufacturing, and selective acquisitions.

For financial reporting, Diodes operates as a single segment, standard semiconductor products. Its line of more than 28,000 products includes diodes, rectifiers, transistors, MOSFETs, glass-passivated (GPP) bridges and rectifiers, protection devices, and function-specific arrays. It also offers single gate logic, amplifiers and comparators, Hall-effect and temperature sensors, and power management devices such as LED drivers, AC-DC and DC-DC converters, voltage regulators and references, USB and load switches, and motor controllers. Mixed-signal products include high-speed mux/demux, switches, redrivers, level shifters, clock ICs and packet switches, and the company also makes timing, connectivity and signal integrity solutions. Other offerings include multichip and co-packaged products in miniature packages, silicon and epitaxial wafers, and frequency control products such as crystals and oscillators. About 50 billion units shipped in 2022. Acquisitions include Greenock, Scotland (GFAB) from Texas Instruments in 2019, Lite-On Semiconductor in 2020, and onsemi's South Portland, Maine wafer fab in June 2022.

Diodes serves the industrial, automotive, computing, communications and consumer markets. Applications range from embedded systems, ADAS, electrification and powertrain, to servers and data centers, 5G networks and smartphones, wearables and home automation. Automotive grew 40% in 2022 and reached 15% of product revenue, and automotive and industrial together made up 42%. The company serves over 50,000 customers worldwide, including direct customers, electronic manufacturing services providers and distributors. Most are served through distribution, and direct and EMS customers made up 30% of 2022 net sales. Many customers are in Asia, and products shipped to China totaled $941.3 million in 2022. Products are sold through direct sales staff in the U.S., Europe and Asia, about 17 independent sales representative firms, and distributors in the U.S., Asia and Europe. Orders are generally cancelable on short notice, and the standard warranty runs one year.

Diodes uses a hybrid manufacturing model that combines internal and externally sourced production. Wafer fabrication facilities are in Oldham, England; Greenock, Scotland; Shanghai and Wuxi, China; Keelung and Hsinchu, Taiwan; and South Portland, Maine. Assembly and test facilities are in China, Taiwan and Neuhaus, Germany. Design, marketing and engineering centers are in the U.S., Taiwan, China, England and Germany, and Americas sales offices are in Milpitas, California. Its manufacturing facilities hold ISO 9001:2015 and ISO 14001:2015 certifications, along with IATF 16949:2016 for automotive products, and the company is C-TPAT certified. Cash capital expenditures were about $211.7 million in 2022. The company describes the discrete, logic, analog and mixed-signal marketplace as highly fragmented and competitive, but names no specific competitors in this text.