On August 8, Diodes Incorporated announced the acquisition of Lite-On Semiconductor Corporation for a total price of approximately $428 million.
Lite-On Semiconductor is a Taiwan-based manufacturer of “green” power-related discrete and analog semiconductor device. The acquisition of Lite-On Semiconductor provides Diodes Inc. with cost-effective wafer fabrication and product assembly manufacturing capabilities for internal procurement flexibility. In addition, Diodes Inc.'s discrete and bipolar IC products can be expanded to provide a complementary product portfolio.
Currently, the board of directors of the two companies has approved the transaction, and the transaction still needs to be approved by LSC shareholders and other regulatory authorities. The transaction is expected to be completed in April 2020.
“In combination with our strong organic growth, this proposed acquisition underscores Diodes’ use of acquisitions to accelerate the attainment of our next strategic goal of $2.5 billion in annual revenue and $1.0 billion in annual gross profit by 2025. This transaction will expand our discrete business in Asia, complementing our existing product lines with offerings at additional price points, especially for cost-sensitive applications. LSC’s contact image sensor business also extends Diodes’ footprint, representing a new market where Diodes can participate,” said Dr. Keh-Shew Lu, President and CEO of Diodes.
In commenting on the acquisition, LSC President David Lee said: "We are pleased to reach this agreement because Diodes provides us with an important opportunity to leverage their extensive sales channels, manufacturing capabilities and extensive support infrastructure. We believe this transaction has outstanding value to our shareholders, customers and employees, and we look forward to being part of Diodes."