Diodes Inc. Signs Agreement to Acquire APD Semiconductor

October 25, 2006 by Jeff Shepard

Diodes Inc. announced that it has signed an agreement to purchase the assets of APD Semiconductor Inc., a privately held U.S.-based fabless discrete semiconductor company. The completion of the transaction is subject to the terms of the asset purchase agreement, the receipt of required approvals and other customary conditions. The asset acquisition includes an approximate $8 million payment for patents, technology, trademarks and net working capital, which is in addition to a potential earnout provision. APD revenue is forecasted to be approximately $2.0 million for 2006, and the transaction is expected to be accretive to Diodes Inc. in 2007.

"The APD acquisition is aligned with our strategy of strengthening Diodes' technology leadership in the discrete semiconductor market and expanding our product capabilities across important segments of our end-markets," said Dr. Keh-Shew Lu, President and CEO of Diodes. "With APD's wafer technology and Diodes' world-class packaging capabilities, we will be able to offer a far superior product to the discrete semiconductor market in respect to both cost and performance."

APD Semiconductor's main product focus is its patented and trademarked Super Barrier Rectifier™ ("SBR™") technology. Utilizing a low cost IC wafer process, the Super Barrier Rectifier technology uses a MOS cellular design to replace standard traditional Schottky or PN junction diodes. The SBR technology uses an innovative patented process technique that allows its key parameters to be easily tuned to optimize any customer applications. This adaptive and scalable technology allows for increased power saving with better efficiency and reliability at higher operating temperatures for end user applications like digital audio players, dc-dc converters, ac-dc power supplies, LCD monitors, Power-over-Ethernet (POE), Power Factor Correction (PFC) and TV/satellite set-top boxes. The SBR technology offers industry-leading products like the SBR20U100, which has the lowest forward voltage (VF) and the highest efficiency and power saving in its class.

"The Super Barrier Rectifier patented technology allows for growth into new high performance market opportunities and is a natural fit with Diodes' product technology platform," said Mark King, Diodes' Senior VP of Sales and Marketing. "This acquisition strengthens our leadership in high efficiency diodes, and we are very excited about the ways we can utilize these technologies to deliver next generation discrete devices across a number of high volume applications."

APD's Low VF 300V SBR product line offers a more cost effective solution to break into the higher voltage markets to compete against existing technologies like Silicon Carbide (SiC) and Gallium Arsenide (GaAs) diodes. APD also brings to Diodes intellectual property that includes several trademarks and patents.