Diodes Incorporated (DIOD): PESTLE Analysis [Nov-2025 Updated]

You're trying to figure out if Diodes Incorporated (DIOD) can sustain its growth trajectory amidst a tricky global market. My two decades in finance, including time at BlackRock, tell me this: DIOD is defintely riding a powerful wave in the automotive and industrial sectors, but that wave is shadowed by some serious geopolitical storms, especially around US-China trade policy, and a lingering inventory correction cycle that's slowing things down. While the company is still projected to hit a respectable revenue of approximately $2.0 billion in 2025, the real story is in how they navigate the shift to Silicon Carbide (SiC) and the constant pressure of regulatory compliance, which is why we need to map out the full PESTLE landscape before you make your next move.

Diodes Incorporated (DIOD) - PESTLE Analysis: Political factors

US-China trade tensions directly impact global supply chains and manufacturing location strategy.

You need to see the US-China trade tensions not just as tariffs, but as a permanent, structural separation of supply chains. For Diodes Incorporated, the risk is real but currently mitigated by their diversified manufacturing footprint and product focus. The latest Q3 2025 financial results show a massive reliance on the Asian market, with 78% of total sales coming from customers in Asia, compared to only 10% from North America. This concentration means any sudden, severe regulatory action by China could immediately impact nearly four-fifths of your revenue stream.

To be fair, Diodes Incorporated's management noted that their direct tariff exposure is 'relatively small' because they have manufacturing operations on both sides of the Pacific, including wafer fabrication facilities in Shanghai and Wuxi, China, and an assembly and test facility in Chengdu, China. Still, the November 2025 trade agreement, which saw the U.S. lower a tariff from 20% to 10% and China remove a 34% import surcharge for a temporary 10% tariff, shows the volatility is defintely near-term. This constant back-and-forth forces you to carry higher inventory and run dual-sourcing strategies, which adds cost.

• Diversify manufacturing away from single-country risk.
• Monitor Asia customer sales for early warning signs.
• Re-evaluate total-landed-cost models with new 10% tariff floor.

Subsidies from the US CHIPS and Science Act influence domestic fabrication and R&D investment.

The US CHIPS and Science Act (Creating Helpful Incentives to Produce Semiconductors for America Act) is a massive policy push, allocating over $52.7 billion to revitalize domestic chip manufacturing. For Diodes Incorporated, this is a clear opportunity, especially since their core business-discrete, logic, and analog chips-falls into the 'mature node' category that the Act specifically targets with around $2 billion in funding.

While industry giants like Intel and TSMC have secured multi-billion dollar grants, Diodes Incorporated has not publicly announced a large direct grant award as of late 2025. However, the company operates a U.S. wafer fabrication facility in South Portland, Maine. This facility makes the company eligible for the Act's most powerful financial incentive: a 25% Investment Tax Credit (ITC) on qualified manufacturing equipment. This credit is a direct, dollar-for-dollar reduction in taxes, making the economics of their U.S. fab expansion much more compelling. Here's the quick math: a $100 million equipment investment in South Portland could yield a $25 million tax saving.

Export control regulations on advanced technology limit market access in key regions.

The U.S. government's Bureau of Industry and Security (BIS) has continued to tighten export controls in 2025, particularly on advanced semiconductors and related technology used for artificial intelligence (AI) and supercomputing. While Diodes Incorporated's products typically use mature process nodes, the geopolitical environment means compliance risk is soaring. New due diligence requirements were unveiled in May 2025, forcing every company to vet the end-user (who is buying the chip) and the end-use (what the chip is being used for) more rigorously, especially for sales into China.

This creates an overhead cost for the entire sales and compliance team. Plus, even though Diodes Incorporated's products are not the cutting-edge chips targeted by the most severe restrictions, the general regulatory environment can still slow down or block shipments. Furthermore, in a minor but specific regulatory detail, Diodes Incorporated was allocated 1,409.7 MTEVe of Hydrofluorocarbon (HFC) production allowances in 2025 under the American Innovation and Manufacturing Act, showing the constant stream of new, complex environmental and trade regulations you must track.

Geopolitical stability in Taiwan affects the broader semiconductor foundry ecosystem.

Geopolitical stability in Taiwan is a critical, high-impact risk. Taiwan is the heart of the global semiconductor foundry ecosystem, and Diodes Incorporated has a direct operational presence there, including a wafer fabrication facility in Hsinchu, Taiwan, and an assembly and test facility in Chongli, Taiwan. Any military or political disruption would immediately halt production at these sites, impacting the entire global supply chain.

The concentration of Diodes Incorporated's operations in Asia, which accounts for 78% of Q3 2025 sales, means a Taiwan disruption would be catastrophic. The company's inclusion on Resilinc's 2025 "Top 30 Most Resilient Suppliers" list is a positive sign of their risk-mitigation efforts, but no amount of resilience planning can fully offset a major geopolitical event in a core manufacturing region. The current political climate forces a high-cost strategy of maintaining redundant capacity outside of the region, which is a drag on margins.

Diodes Incorporated (DIOD) - PESTLE Analysis: Economic factors

The economic landscape for Diodes Incorporated (DIOD) in 2025 is a study in contrasts, with strong secular growth drivers like automotive and AI-related computing battling persistent cyclical headwinds from inventory correction and cost pressures. The direct takeaway is that while the company is successfully pivoting to higher-value markets, near-term profitability remains under pressure from a less favorable product mix and manufacturing underutilization.

Global interest rate hikes slow industrial and consumer electronics demand, impacting order volumes.

You can defintely see the ripple effect of global central bank policies in our order books. Higher interest rates, a tool to fight inflation, have a direct impact on capital expenditures and consumer spending, which in turn slows demand for industrial and consumer electronics. For Diodes Incorporated, this means the industrial segment, which accounted for 22% of Q3 2025 revenue, is recovering slower than anticipated, even as it remains a strategic focus. While the broader semiconductor market is beginning to see some normalization, the lag in these core segments still dampens near-term order volumes.

Inflationary pressures increase manufacturing costs, squeezing gross margins.

Inflation is not just a headline; it's a direct hit to the bottom line. While rising input costs-from raw materials to energy-are a factor, the primary squeeze on Diodes Incorporated's gross margin is a combination of product mix and factory utilization. In Q3 2025, the GAAP gross margin fell to 30.7%, a notable drop from 33.7% in the same quarter of 2024. This decline is largely due to a temporary shift toward lower-margin computing and consumer products, plus the cost of running manufacturing facilities at less than full capacity (underloading costs) as channel inventory is worked down. Here's the quick math on the margin trend:

Inventory correction cycle in the broader electronics market continues to dampen near-term revenue growth.

The semiconductor industry's inventory correction cycle is the elephant in the room, and Diodes Incorporated is not immune. The process of channel partners depleting their excess stock means lower immediate demand for new components from us. This depletion continues to limit the loading at Diodes Incorporated's manufacturing facilities, which directly contributes to the gross margin headwind. The company's inventory days stood at 193 in Q4 2024, with total inventory dollars at $475 million, underscoring the scale of stock that needs to be normalized before a full recovery. The good news is that management anticipates margin expansion as this inventory normalization completes.

Strong growth in the automotive sector offsets weakness in consumer electronics.

The automotive sector is the clear bright spot, acting as a crucial offset to the cyclical weakness elsewhere. This segment's growth is fueled by the surging adoption of electric vehicles (EVs) and advanced driver-assistance systems (ADAS), both of which require significantly more semiconductor content per vehicle.

• Automotive revenue for Diodes Incorporated grew 8.5% sequentially in Q3 2025.
• Year-over-year, the automotive segment saw a strong increase of 18.5% in Q3 2025.
• Automotive accounted for 19% of total revenue in Q3 2025, with industrial at 22% and computing at 28%.

This strategic focus on automotive and industrial-which together made up 42% of product revenue in Q4 2024-is what anchors the company's long-term stability and growth narrative.

Diodes Incorporated's projected 2025 revenue is estimated to reach approximately $1.47 billion, showing modest growth.

Based on the actual financial results for the first three quarters of 2025 and the midpoint of the Q4 2025 guidance, Diodes Incorporated's full-year 2025 revenue is projected to be approximately $1.47 billion. This represents a modest year-over-year growth of about 13% from the 2024 full-year revenue of $1.3 billion. This growth is significant because it marks a return to year-over-year growth for five consecutive quarters, a clear sign the company is moving past the market slowdown.

Diodes Incorporated (DIOD) - PESTLE Analysis: Social factors

Social factors are creating a powerful tailwind for Diodes Incorporated, specifically by driving demand for the power and analog components you specialize in. You need to see this not just as a sales opportunity, but as a mandate to address supply chain ethics and the engineering talent shortage, because those two risks could defintely cap your growth.

The core takeaway is that consumer behavior-buying electric cars and connecting their homes-is directly fueling your highest-growth markets. Your Automotive and Industrial segments, which together accounted for 41% of product revenue in Q3 2025, are the primary beneficiaries. Still, the talent crisis is a real threat to sustaining that momentum.

Growing consumer demand for electric vehicles (EVs) drives need for DIOD's power management components.

The consumer shift to electric vehicles is a massive, quantifiable driver for Diodes Incorporated. The global EV market size is calculated at nearly $988.70 billion in 2025, showing the scale of this transition. This translates directly into demand for your power management components-like MOSFETs and rectifiers-which are essential for battery management systems, on-board charging, and powertrain control in every EV.

In 2025, global electric car sales are expected to exceed 20 million units, representing more than one-quarter of all cars sold worldwide. For the US market alone, EVs are projected to hit a 13.5 percent market share of overall light-vehicle sales this year. This growth is why Diodes Incorporated's Automotive sector revenue was already a significant 19% of your total product revenue in the third quarter of 2025, and it's primed to grow faster than the average market rate. You must continue prioritizing product qualification cycles with major automotive Tier 1 suppliers to capture this content-per-vehicle increase.

Increased adoption of remote work and smart home technology sustains demand for connectivity chips.

The post-pandemic acceleration of remote work and the continued push for home automation are sustaining a robust demand for your connectivity and analog chips. The global smart home market size is valued at approximately $162.27 billion in 2025 and is projected to grow at a Compound Annual Growth Rate (CAGR) of 27.10% through 2034. That's a huge, long-term runway.

Your Computing (28% of Q3 2025 product revenue) and Consumer (18%) segments directly benefit from this trend. These markets require a high volume of small signal devices, power switches, and connectivity chips to power everything from smart thermostats and security cameras to high-speed docking stations and monitors for home offices. The push for energy efficiency in these devices further boosts demand for your high-efficiency power components. It's a simple equation: more connected devices means more of your chips inside.

Focus on supply chain transparency and ethical sourcing influences customer purchasing decisions.

Customer and regulatory scrutiny on how chips are made is intensifying; this isn't a soft issue anymore, it's a compliance and brand risk. Governments are implementing more rigorous rules, such as the EU's Corporate Sustainability Due Diligence Directive (CSDDD) and the UFLPA in the US, which demand verifiable ethical sourcing and transparency. What this estimate hides is the reputational damage from a single violation.

For a global company like Diodes Incorporated, which operates in complex international supply chains, this means a significant portion of your customer base-especially in Europe and North America-is making purchasing decisions based on your Environmental, Social, and Governance (ESG) performance. Your customers, who are major global electronics manufacturers, are now passing their own compliance requirements down to you. The data shows that over 50% of assessed regions face a high or extreme risk of ESG violations, including the United States, which means you cannot assume compliance anywhere. This requires real-time visibility and traceability (blockchain and advanced Enterprise Resource Planning (ERP) tools are key) to mitigate risk and maintain your preferred supplier status.

Workforce shortages in highly skilled engineering roles create talent acquisition challenges.

The semiconductor industry's talent shortage is a clear, near-term risk to your capacity for innovation. The U.S. labor gap in the semiconductor industry is an estimated 76,000 jobs across all roles, from fab labor to skilled engineers. This gap is only intensifying as the industry expands. Here's the quick math on the engineering challenge:

The engineering occupation is projected to account for 41% of the total estimated semiconductor technical workforce gap by 2030, equating to a need for approximately 27,300 new engineers in the US alone. Compounding this, a projected shortfall of over 100,000 engineers is predicted in both the U.S. and Europe. Your competitors are also fighting for this same limited pool of analog, power, and process engineers.

This shortage directly impacts Diodes Incorporated's ability to execute on its core strategy: designing new power management chips for the booming EV and Industrial markets. You need to adapt your hiring strategy immediately to compete with the large technology companies like Google and Apple, who are building in-house chip teams and attracting top talent with high-profile brand images. This means aggressively investing in university partnerships and internal upskilling programs to create your own talent pipeline.

Your next concrete step is for Human Resources and Engineering Leadership to draft a 3-year talent acquisition and development plan focused on analog and power engineering roles by the end of Q4 2025, with a budget request for a 15% increase in university recruitment spend.

Diodes Incorporated (DIOD) - PESTLE Analysis: Technological factors

Rapid adoption of Silicon Carbide (SiC) and Gallium Nitride (GaN) technologies requires significant R&D investment.

The shift to Wide Bandgap (WBG) semiconductors, specifically Silicon Carbide (SiC) and Gallium Nitride (GaN), is the single biggest technological pivot for power electronics right now. These materials allow for much higher power density and efficiency than traditional silicon, which is critical for Electric Vehicles (EVs) and high-power data center applications. Diodes Incorporated is actively addressing this by introducing new products, like their 50V and 1,200V silicon carbide Schottky Barrier Diodes and new silicon carbide MOSFETs designed for EV chargers and power supplies for AI servers.

This aggressive product development requires a heavy commitment to Research and Development (R&D). For the first half of fiscal year 2025 alone, Diodes Incorporated reported a GAAP R&D expenditure of approximately $79.164 million. That's a serious investment, and it's necessary to compete with larger players. The global SiC and GaN power semiconductor market was projected to reach over $3 billion by 2025, showing just how fast this segment is growing.

Here's the quick math on the investment: the company is leaning heavier into R&D to capture this high-margin WBG opportunity. If you don't invest in SiC/GaN now, you're defintely missing the next cycle of high-voltage power management.

Miniaturization and integration trends demand smaller, more efficient analog and discrete components.

Every new device, from a smartwatch to an industrial robot, demands smaller components that can handle more power and heat. This relentless push for miniaturization is forcing a shift from traditional packages to advanced, high-density formats. The global Discrete Component market is projected to reach an estimated $180 billion by 2025, with discrete semiconductors themselves projected to increase by 7.7%.

The core action here is packing more functionality into less space. This means adopting advanced packaging technologies like the DFN (Dual Flat No-Lead) packages Diodes Incorporated uses for its CMOS and bipolar junction transistors. These new designs help engineers reduce the total Printed Circuit Board (PCB) size by up to 20% by integrating passive components directly into the substrate. Also, using High-Density Interconnect (HDI) technology can increase routing density by up to 30% over traditional methods, which is a huge win for compact designs. Smaller size equals higher thermal and electrical performance, and that's what customers pay for.

Automotive industry shift to ADAS (Advanced Driver-Assistance Systems) and electrification increases chip content per vehicle.

The automotive market is a key growth driver for Diodes Incorporated, representing a combined 41% of product revenue with the industrial segment in Q3 2025. The transition to electric vehicles and the widespread adoption of ADAS features like automated braking and lane-keep assist is fundamentally changing the chip content per car. An Electric Vehicle is projected to contain over $1,500 in semiconductor content by 2025, which is nearly three times the $500-$600 found in a traditional internal combustion engine (ICE) car.

Diodes Incorporated is gaining market share by supplying a wide range of products for these new systems, including high-reliability power management chips, switching diodes, and Zener diodes used in Battery Management Systems (BMS), telematics, and infotainment applications. Power semiconductors, which are Diodes Incorporated's core strength, account for a significant 30% to 40% of the total semiconductor value in a modern vehicle. This is a long-term tailwind. You want to be where the chip content is multiplying.

AI and IoT proliferation create new, high-volume opportunities for sensor and power management chips.

The explosion of Artificial Intelligence (AI) in data centers and the proliferation of Internet of Things (IoT) devices at the edge are creating massive demand for the power management and connectivity chips Diodes Incorporated supplies. The Global AI Chips Market is estimated to be valued at a staggering $83.80 billion in 2025, with generative AI chips alone expected to be over $150 billion in the year. This is not just a computing play; it's a power play.

Diodes Incorporated is capitalizing on this trend, with its computing segment showing strong growth and accounting for 28% of its product revenue in Q3 2025, largely driven by AI-related server applications and data centers. AI servers require incredibly efficient power management to handle the massive power draw of GPUs and accelerators. This is where Diodes Incorporated's high-efficiency power management ICs (Integrated Circuits) and SiC MOSFETs are being designed in. The broader Power Management IC market was valued at $40.73 billion in 2024, and the automotive segment is expected to register the highest Compound Annual Growth Rate (CAGR) from 2025 to 2034, fueled by these same AI and ADAS systems.

• AI/IoT demand boosts Diodes Incorporated's computing segment to 28% of Q3 2025 product revenue.
• New industrial applications include AI robotics and factory automation.
• High-speed USB Type-C solutions are key for in-car charging and cockpit electronics.

Diodes Incorporated (DIOD) - PESTLE Analysis: Legal factors

The legal landscape for Diodes Incorporated in 2025 is defined by a tightening regulatory environment across data privacy, intellectual property, and merger control. You're operating a global semiconductor business, so compliance isn't just a cost; it's a critical component of your operational resilience and strategic growth plan. The costs of non-compliance-from massive fines to blocked acquisitions-are now material risks that directly impact shareholder value, especially in a capital-intensive sector like semiconductors.

Compliance with the European Union's GDPR (General Data Protection Regulation) for global operations

Diodes Incorporated's global reach, especially in Europe, means the European Union's General Data Protection Regulation (GDPR) is a constant, evolving risk. The company's public commitment to GDPR is clear, but the compliance burden is rising in 2025, particularly around new guidelines for cross-border data transfers and the integration of Artificial Intelligence (AI) into business processes. Honestly, your data governance framework needs to be defintely top-tier.

What this regulatory environment means is a higher financial risk for any misstep. The maximum fine for a severe GDPR violation is the greater of €20 million or 4% of the company's annual global turnover. If we project Diodes Incorporated's full-year 2025 revenue based on the Q3 2025 revenue of $392.2 million, we're looking at a potential annual turnover of roughly $1.57 billion. A 4% fine on that figure would be a penalty of approximately $62.8 million, which is a huge hit, especially when compared to the $56.850 million in net income attributable to common stockholders for the nine months ended September 30, 2025. That's a huge exposure.

Stricter intellectual property (IP) protection laws necessitate robust patent defense strategies

The semiconductor industry remains a hotbed for patent litigation, and the financial stakes are escalating. In the first half of 2025 alone, total patent damages awarded across various industries reached over $1.91 billion, with the largest single award being nearly $949 million. This environment requires Diodes Incorporated to be highly proactive, not reactive, in its IP strategy.

The good news is that Diodes Incorporated is actively building its defense. The company has secured new patents in 2025, demonstrating ongoing innovation, such as the granting of Patent No. 12205934 in January 2025 for electronic component packaging and Patent No. 12218191 in February 2025 for semiconductor structure. This constant innovation is your best defense, but you must also be ready to litigate. New legal precedents are also making it easier to claim damages based on foreign sales tied to domestic infringement, meaning your global revenue is now more exposed in U.S. patent cases.

Increased scrutiny on M&A activity by global antitrust regulators could complicate future acquisitions

The regulatory climate for mergers and acquisitions (M&A) in the technology sector is significantly more hostile in 2025. Regulators in the U.S. and Europe are aggressively scrutinizing deals, particularly horizontal mergers between direct competitors, and they are not afraid to challenge or block them. This directly impacts Diodes Incorporated's stated strategic goal to reach $2.5 billion in annual revenue by 2025, a goal the company has historically used acquisitions to accelerate.

While Diodes Incorporated has not announced a major acquisition in 2025, the increased scrutiny means any future deal will face longer review times and higher compliance costs. The Department of Justice (DOJ) is also seeking civil penalties exceeding $500,000,000 for alleged violations of the Hart-Scott-Rodino (HSR) Act premerger notification rules. This forces the legal team to conduct deeper, more expensive due diligence upfront, slowing down the pace of strategic growth.

Here's the quick math on the M&A risk:

Tariffs and import/export duties directly affect component sourcing and final product cost

Trade policy remains volatile, and tariffs are a direct operational cost for a company like Diodes Incorporated with a global supply chain. The reintroduction and expansion of U.S. tariffs in early 2025, including duties as high as 145% on some Chinese electronic products, directly threaten your component sourcing costs and final product margins.

The core challenge is the ambiguity: while raw semiconductors are often exempt from the baseline 10% import tariff, finished products containing them are not. Furthermore, there is a proposed increase that could raise the tariff on semiconductors from China to 60%. Given that China and Mexico account for a huge portion of U.S. electronics imports ($145.9 billion and $103.4 billion respectively in 2023), Diodes Incorporated must continually re-evaluate its sourcing and manufacturing footprint. This isn't just a finance problem; it's a legal and supply chain problem.

Your legal team needs to focus on two clear actions:

• Audit HTS Codes: Review all Harmonized Tariff Schedule (HTS) codes for finished goods to ensure correct classification and minimize tariff exposure.

• Optimize Supply Chain: Provide legal counsel on shifting production to non-tariffed regions, leveraging the company's existing facilities in Asia and Europe, plus the U.S.-based South Portland, Maine wafer fabrication facility acquired in 2022.

Diodes Incorporated (DIOD) - PESTLE Analysis: Environmental factors

Pressure from investors and customers to meet stringent ESG (Environmental, Social, and Governance) targets.

The semiconductor industry is under increasing scrutiny, and Diodes Incorporated is defintely feeling the pressure from its institutional investors and major customers, especially in the automotive and industrial sectors, to demonstrate clear progress on ESG. You need to show your work here, and Diodes Incorporated does this by aligning its disclosures with frameworks like the Global Reporting Initiative (GRI), the Task Force on Climate-related Financial Disclosures (TCFD), and the Sustainability Accounting Standards Board (SASB).

This commitment is not just a policy statement; it's a measurable goal. The company has pledged to achieve a 20% reduction in combined Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 2030, using a 2023 base year. This goal is a direct response to the market's demand for a tangible decarbonization strategy. Plus, the company's focus on supply chain resilience, earning a spot on Resilinc's 2025 "Top 30 Most Resilient Suppliers" list, shows they are proactively managing risks like extreme weather events, which are crucial for investor confidence.

Compliance with global waste and hazardous substance regulations, like RoHS and REACH.

In the electronics world, maintaining compliance with global hazardous substance regulations is non-negotiable-it's the cost of entry for major markets. Diodes Incorporated maintains full compliance with the latest amendments to the European Union's Restriction of Hazardous Substances Directive (RoHS 3) and the Registration, Evaluation, Restriction, and Authorization of Chemicals (REACH) regulation. This is a continuous operational challenge, given the frequent updates, such as the April 2025 and June 2025 amendments to REACH.

The company's commitment extends to a global web of mandates, including UK RoHS, Waste Electrical and Electronic Equipment (WEEE), and the Global Automotive Declarable Substance List (GADSL), which saw an update in February 2025. For customers, this compliance is simplified by Diodes Incorporated's specific definition of a "Green" product:

• Be RoHS compliant.
• Contain less than 900ppm bromine.
• Contain less than 900ppm chlorine (or less than 1500ppm total Br+Cl).
• Contain less than 1000ppm antimony compounds.

The compliance team is always busy. The risk here is simple: a single compliance failure can halt shipments to a major region, so this operational vigilance is critical.

Need to reduce energy consumption in manufacturing processes to lower operational carbon footprint.

Semiconductor manufacturing is energy-intensive, so reducing consumption is a dual-benefit strategy: it lowers the carbon footprint and cuts significant operating costs. Diodes Incorporated has made concrete investments in this area. In 2024, the company invested more than $6.5 million across over 30 global energy-efficiency projects. Here's the quick math on the return:

The company is also actively shifting its energy mix. Renewable energy now accounts for almost a third of consumed energy, which is up from under a quarter in the previous year. For example, the Hsinchu facility in Taiwan achieved a 38% reduction in carbon emissions intensity through investments in solar energy and a perfluorocarbon (PFC) greenhouse gas treatment system. That kind of efficiency move pays for itself.

Scarcity of water and raw materials in key fabrication regions poses long-term operational risk.

The long-term risk for any semiconductor company is the availability of critical resources, especially ultra-pure water and specific raw materials, in fabrication-heavy regions like Taiwan and China. Diodes Incorporated is managing this risk by focusing on water security, which is a key topic in their 2025 CDP Corporate Questionnaire disclosure.

The company is making capital investments to reduce water use at the source. For instance, the Greenock, UK (GFAB) manufacturing site upgraded to more efficient solid-state chillers, which resulted in approximately 60% less plant cooling water (PCW) consumption compared to the older equipment. This kind of operational improvement is key to mitigating scarcity risk. While the broader raw material scarcity risk is a constant industry-wide concern, Diodes Incorporated's strategy is to improve supply chain resilience, which was recognized by its inclusion in a 2025 list of Top 30 Most Resilient Suppliers.