Exhibit 10.49

Union Bank                                         Commercial Loan Documentation
Of California                                      P.O. Box 30115
                                                   Los Angeles, CA 90030-0115

October 16, 2002

Diodes Incorporated
3050 E Hillcrest Dr. Ste #200
Westlake Village, CA  91362-3154

Attn:  Mr. Carl Wertz, CFO

Dear Carl:

This letter is being sent at the request of your Account Manager, John Kase, and
is to confirm that UNION BANK OF CALIFORNIA,  N.A. ("Bank") has agreed to extend
the maturity date of the Revolving Line of Credit ("Facility") granted to Diodes
Incorporated  ("Borrower") in the principal amount of Seven Million Five Hundred
Thousand and 00/100ths Dollars  ($7,500,000.00)  originally made under a certain
note dated May 1, 2002, and Credit  Agreement dated December 1, 2000, as amended
from  time to  time,  (collectively,  the  "Agreements").  A copy of the note is
attached.

The  maturity  date of the  Facility  is hereby  extended to March 3, 2003 ("New
Maturity Date").  The Agreements shall be deemed modified as of the date of this
letter to reflect the New Maturity  Date.  All other terms and conditions of the
Agreements remain in full force and effect, without waiver or modification. This
extension  is  conditioned  upon  Borrower's  continued  payment of  interest as
provided in the Agreements.

Each advance request, or Borrower's  continued payments of principal or interest
on the outstanding  balance of any term loan,  constitutes  Borrower's  warranty
that no event of default as defined in the Agreements and no condition, event or
act  which,  with the  giving of notice or the  passage  of time or both,  would
constitute  such an event of default,  shall have  occurred and be continuing or
shall exist.

BANK HAS NOT COMMITTED TO MAKE ANY FURTHER EXTENSION OF THE MATURITY DATE, OR TO
RENEW THE FACILITY  BEYOND THE NEW MATURITY DATE.  ANY FURTHER  EXTENSION OR ANY
RENEWAL REMAINS IN THE DISCRETION OF BANK.

If you have any questions, please call your Account Manager, John Kase, at (213)
236-7329.

Very truly yours,

UNION BANK OF CALIFORNIA, N.A.

By:         /s/ Carolyn Gordon

Name:    Carolyn Gordon

Title:            Sr. Assistant Vice President