Date: 07/01/2013

Diodes Inc grows through acquisitions in China's discrete semiconductor market

Discrete and power IC chip maker Diodes Inc has acquired BCD Semiconductor Manufacturing Limited. Through this acquisition Diodes steps up its share in fast growing Chinese semiconductor market. Diodes says the aggregate consideration will be approximately $151 million. BCD product portfolio includes linear and switching power semiconductors, LED drivers, FAN drivers, sensors, TVS, and touch controller ICs.

Commenting on the transaction, Dr. Keh-Shew Lu, President and Chief Executive Officer of Diodes, stated, “This proposed acquisition underscores Diodes’ strategy to expand our market and growth opportunities through select strategic acquisitions. This transaction will
greatly enhance our analog product portfolio by expanding our standard linear and power management offerings, including AC/DC and DC/DC solutions for power adapters and chargers, as well as other electronics products. BCD’s established presence in Asia with a particularly strong local market position in China offers Diodes even greater penetration of the consumer, computing and communications markets. Likewise, Diodes can achieve increased market penetration for BCD’s products by leveraging our global customer base and sales channels. In addition, BCD has in-house manufacturing capabilities in China, as well as a cost-effective development team that can be deployed across multiple Diodes’ product families. We will also be able to apply Diodes’ packaging capabilities and expertise to BCD’s products in order to improve cost efficiencies, utilization as well as product mix.”

Dr. Lu concluded, “Diodes has a successful track record of combining businesses to achieve revenue expansion, cost reductions and improved profitability. BCD employees are a key asset, and we look forward to integrating them into the Diodes family as we work closely with our customers to familiarize them with our new expanded offerings, while continuing to provide exceptional service and support.”

Commenting on the proposed acquisition, Mr. Chieh Chang, Chief Executive Officer of BCD Semiconductor, said, “We are pleased to have reached this agreement because we believe that BCD Semiconductor becoming a part of Diodes represents a compelling opportunity for
our customers, employees and shareholders. This transaction provides liquidity at a significant premium for our shareholders and the combined company greatly strengthens the analog offerings and market opportunities for our customers."

In 2012 Diodes has also has acquired Power Analog Microelectronics, Inc. Power Analog’s product portfolio includes Class D audio amplifiers, DC-DC converters and LED backlighting drivers.
Author: Srinivasa Reddy N