DIODES INCORPORATED

                    NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

                             TO BE HELD JUNE 2, 2003

                  NOTICE IS HEREBY GIVEN THAT THE ANNUAL MEETING (THE "MEETING")
OF THE STOCKHOLDERS OF DIODES  INCORPORATED  (THE "COMPANY") WILL BE HELD AT THE
RENAISSANCE HOTEL, 30100 AGOURA ROAD, AGOURA HILLS, CALIFORNIA 91301, ON MONDAY,
JUNE 2, 2003 AT 10:00 A.M. (CALIFORNIA TIME) FOR THE FOLLOWING PURPOSES:

TO ACT ON:

1.            ELECTION  OF  DIRECTORS.  To elect  seven  persons to the Board of
              Directors  of the  Company,  each to serve  until the next  annual
              meeting  of  stockholders  and until  their  successors  have been
              elected and qualified.  The Board of Directors' nominees are: C.H.
              Chen,  Michael R.  Giordano,  Keh-Shew  Lu,  M.K.  Lu,  Shing Mao,
              Raymond Soong and John M. Stich.

2.            RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS. To ratify the
              appointment  of  Moss  Adams  LLP  as  the  Company's  independent
              certified public accountants for the year ended December 31, 2003.

3.            OTHER  BUSINESS.  To transact such other  business as properly may
              come before the Meeting or any adjournment thereof.

                  Only   persons   who   are   stockholders   of   record   (the
"Stockholders")  at the close of  business  on April 18,  2003 are  entitled  to
notice of and to vote in person or by proxy at the Meeting or any adjournment or
postponement thereof.

                  The Proxy Statement,  which accompanies this Notice,  contains
additional  information regarding the proposals to be considered at the Meeting,
and Stockholders are encouraged to read it in its entirety.

                  As set forth in the  enclosed  Proxy  Statement,  proxies  are
being  solicited by and on behalf of the Board of Directors of the Company.  All
proposals  set forth above are  proposals  of the Company.  It is expected  that
these materials first will be mailed to Stockholders on or about April 29, 2003.

                  WHETHER OR NOT YOU PLAN TO ATTEND THE  MEETING,  PLEASE  MARK,
DATE AND SIGN THE ENCLOSED PROXY AND RETURN IT PROMPTLY IN THE ENCLOSED ENVELOPE
TO BE SURE THAT YOUR SHARES ARE VOTED. YOUR VOTE IS IMPORTANT, WHETHER YOU OWN A
FEW SHARES OR MANY.  IF YOU ATTEND THE  MEETING,  YOU MAY REVOKE  YOUR PROXY AND
VOTE YOUR  SHARES IN  PERSON.  THE PROXY MAY BE REVOKED AT ANY TIME PRIOR TO ITS
EXERCISE.

                  Dated at Westlake Village, California, this seventeenth day of
April, 2003.

                       By Order of the Board of Directors,

                                            DIODES INCORPORATED

                                            /s/ Carl Wertz
                                            Carl Wertz,
                                            Secretary

                                       1




                               DIODES INCORPORATED
                            3050 EAST HILLCREST DRIVE
                       WESTLAKE VILLAGE, CALIFORNIA 91362
                                 (805) 446-4800

                                 PROXY STATEMENT

                          ANNUAL MEETING: JUNE 2, 2003


                               GENERAL INFORMATION

                  This Proxy  Statement  is  furnished  in  connection  with the
solicitation  of proxies by the Board of Directors (the "Board of Directors") of
Diodes Incorporated (the "Company") for use at the annual meeting (the Meeting")
of the  stockholders  of the Company to be held on Monday,  June 2, 2003, at the
Renaissance Hotel,  30100 Agoura Road, Agoura Hills,  California 91301, at 10:00
a.m. (California time) and at any adjournment or postponement thereof. C.H. Chen
and Carl C. Wertz, the designated proxyholders (the "Proxyholders"), are members
of the Company's management. Only stockholders of record (the "Stockholders") on
April 18,  2003 (the  "Record  Date") are  entitled  to notice of and to vote in
person or by proxy at the Meeting or any  adjournment or  postponement  thereof.
This Proxy  Statement and the enclosed  proxy card (the  "Proxy")  first will be
mailed to Stockholders on or about April 29, 2003.

MATTERS TO BE CONSIDERED

                  The  matters to be  considered  and voted upon at the  Meeting
will be:

1.            ELECTION  OF  DIRECTORS.  To elect  seven  persons to the Board of
              Directors  of the  Company,  each to serve  until the next  annual
              meeting  of  stockholders  and until  their  successors  have been
              elected and qualified.  The Board of Directors' nominees are: C.H.
              Chen,  Michael R.  Giordano,  Keh-Shew  Lu,  M.K.  Lu,  Shing Mao,
              Raymond Soong and John M. Stich.

2.            RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS. To ratify the
              appointment  of  Moss  Adams  LLP  as  the  Company's  independent
              certified public accountants for the year ended December 31, 2003.

3.            OTHER  BUSINESS.  To transact such other  business as properly may
              come before the Meeting or any adjournment thereof.

COST OF SOLICITATION OF PROXIES

                  This Proxy  solicitation  is made by the Board of Directors of
the Company, and the Company will bear the costs of this solicitation, including
the expense of preparing,  assembling, printing and mailing this Proxy Statement
and any other material used in this  solicitation of Proxies.  This solicitation
of Proxies  will be made by mail and may be  supplemented  by telephone or other
personal contact to be made without special compensation by regular officers and
employees  of the  Company.  If it should  appear  desirable  to do so to ensure
adequate  representation  at the  Meeting,  officers and regular  employees  may
communicate with  Stockholders,  beneficial  owners,  banks,  brokerage  houses,
custodians,   nominees  and  others,  by  telephone,   facsimile  transmissions,
telegraph,  or in person to request that Proxies be furnished.  The Company will
reimburse  banks,   brokerage  houses,   and  other  custodians,   nominees  and
fiduciaries,  for their  reasonable  expenses in forwarding  proxy  materials to
their principals.  The total estimated cost for the printing and solicitation of
Proxies is $10,000.

                                       2


OUTSTANDING  SECURITIES AND VOTING RIGHTS;  REVOCABILITY OF PROXIES

                  The  authorized   capital  of  the  Company  consists  of  (i)
30,000,000  shares of common stock  ("Common  Stock"),  $0.66-2/3 par value,  of
which  8,412,092  shares were issued and outstanding on the Record Date (with an
additional 1,075,672 shares held as treasury stock) and (ii) 1,000,000 shares of
Class A Preferred Stock,  $1.00 par value ("Class A Preferred  Stock"),  none of
which were issued and  outstanding  on the Record Date. The Common Stock and the
Class A Preferred Stock are collectively  referred to as the "Stock." A majority
of the  outstanding  shares of the  Common  Stock  constitutes  a quorum for the
conduct of business at the  Meeting.  Abstentions  and  "broker  non-votes"  (as
defined  below) will be treated as shares  present and  entitled to vote for the
purpose of determining the presence of a quorum.

                  Each  Stockholder  is  entitled  to one vote,  in person or by
proxy,  for each share of Common Stock  standing in his or her name on the books
of  the  Company  as  of  the  Record  Date  on  any  matter  submitted  to  the
Stockholders,  except that in connection  with the election of  directors,  each
Stockholder has the right to cumulate votes, provided that the candidates' names
have been properly  placed in nomination  prior to  commencement of voting and a
Stockholder  has  given  notice  prior to  commencement  of voting of his or her
intention  to  cumulate  votes.  If a  Stockholder  has given such  notice,  all
Stockholders may cumulate their votes for all nominated  candidates.  Cumulative
voting  entitles a Stockholder  to give one candidate a number of votes equal to
the  number of  directors  to be elected  multiplied  by the number of shares of
Common Stock owned by such  Stockholder,  or to  distribute  such  Stockholder's
votes on the same principle among as many  candidates as the  Stockholder  shall
think fit.  The  candidates  receiving  the highest  number of votes,  up to the
number of directors to be elected, shall be elected.  Discretionary authority to
cumulate  votes is hereby  solicited by the Board of Directors and the return of
the Proxy shall grant such authority.

                  A Proxy for use at the Meeting is enclosed.  The Proxy must be
signed and dated by you or your authorized representative or agent. Telegraphed,
cabled or telecopied  Proxies are also valid. You may revoke a Proxy at any time
before it is exercised at the Meeting by submitting a written  revocation to the
Secretary  of the Company or a duly  executed  Proxy  bearing a later date or by
voting in person at the Meeting.

                  Brokers  holding Common Stock in "street name" who are members
of a stock  exchange are required by the rules of the exchange to transmit  this
Proxy  Statement  to the  beneficial  owner of the  Common  Stock and to solicit
voting  instructions  with respect to the matters submitted to the Stockholders.
In the event any such broker has not received  instructions  from the beneficial
owner by the date specified in the statement  accompanying  such  material,  the
broker may give or authorize  the giving of a Proxy to vote such Common Stock in
his discretion as to the election of directors or the appointment of independent
auditors. Certain other proposals,  however, are non-discretionary,  and brokers
or nominees who have  received no  instructions  from their  clients do not have
discretion to vote on such  proposals  without  specific  instructions  from the
beneficial  owner.  When a broker or nominee votes a client's shares on some but
not all proposals,  the missing votes are referred to as "broker  non-votes." If
you hold Common Stock in "street  name" and you fail to instruct  your broker or
nominee as to how to vote such Common Stock,  your broker or nominee may, in its
discretion, vote such Common Stock "FOR" the election of the Board of Director's
nominees  and  "FOR"  the  appointment  of  Moss  Adams  LLP  as  the  Company's
independent auditors.

                  Each  proposal  described  herein,  other than the election of
directors, requires the affirmative vote of a majority of the outstanding shares
of Common Stock present in person or  represented  by proxy and entitled to vote
at the  Meeting.  Abstentions  with  respect to any  proposal  submitted  to the
Stockholders,  other than the  election  of  directors,  will be included in the
number of votes cast on such proposal and, accordingly,  will have the effect of
a vote  "AGAINST"  such proposal.  However,  broker  non-votes with respect to a
proposal  submitted  to the  Stockholders  will not be included in the number of
shares counted as being present for the purposes of voting on such proposed and,
accordingly, have no effect on the approval of the proposal.

                  Unless  revoked,  the shares of Common  Stock  represented  by
Proxies will be voted in accordance with the instructions given thereon.  In the
absence of any  instruction  in the Proxy,  your shares of Common  Stock will be
voted "FOR" the election of the nominees for director set forth herein and "FOR"
the other proposals described herein.

                  Of the shares of Common Stock  outstanding on the Record Date,
3,067,639  (or  approximately  36.5%)  (the  "Shares")  were held in the name of
Lite-On  Semiconductor   Corporation  ("LSC"),   formerly  named  Lite-On  Power
Semiconductor ("LPSC"). See "General Information - Security Ownership of Certain
Beneficial  Owners and  Management"  and "Proposal One - Election of Directors -
Certain  Relationships  and  Related  Transactions"  for  a  discussion  of  the
relationship between LPSC, LSC and the Company. An additional 215,312 shares (or
approximately

                                       3


2.6%) were  owned by  directors  and  executive  officers  of the
Company on the Record  Date.  LSC and each  director and  executive  officer has
informed  the Company  that they will vote "FOR" the election of the nominees to
the Board of Directors  identified  herein,  and "FOR" the  appointment  of Moss
Adams LLP as the Company's independent auditors.

                  Recently,  the Securities and Exchange  Commission (the "SEC")
amended  its rule  governing  a  company's  ability to use  discretionary  proxy
authority with respect to  stockholder  proposals with were not submitted by the
stockholders in time to be included in the proxy statement.  As a result of that
rule  change,  in the event a  stockholder  proposal  was not  submitted  to the
Company prior to March 15, 2003, the enclosed Proxy will confer authority on the
Proxyholders  to vote the shares in  accordance  with their  best  judgment  and
discretion  if the proposal is presented at the Meeting.  As of the date hereof,
no stockholder proposal has been submitted to the Company, and management is not
aware of any other matters to be presented  for action at the Meeting.  However,
if any other  matters  properly come before the Meeting,  the Proxies  solicited
hereby will be voted by the Proxyholders in accordance with the  recommendations
of the Board of Directors.  Such  authorization  includes authority to appoint a
substitute  nominee or nominees to the Board of Directors'  nominees  identified
herein where death,  illness or other circumstances arise which prevent any such
nominee for  directors  from serving in such position and to vote such Proxy for
such substitute nominee.

         SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

                  The  following  table sets forth the  beneficial  ownership of
Common Stock as of the Record Date by (i) each person known to the Company to be
the  beneficial  owner of more than five  percent of the  outstanding  shares of
Common Stock (other than  depositories),  (ii) each executive officer,  director
and nominee for director of the Company,  and (iii) all  directors and executive
officers as a group:


                                                                                AMOUNT AND
                                                                                 NATURE OF
                                                                                BENEFICIAL             PERCENT
NAME AND ADDRESS OF BENEFICIAL OWNER (1)                                         OWNERSHIP (2)        OF CLASS(3)
- ------------------------------------------------------------------------ -- -------------- ----- ------------
                                                                                                
Lite-On Semiconductor Corporation ("LSC")                                        3,067,639 (4)           36.5%
- ------------------------------------------------------------------------ -- -------------- ----- ------------
Fidelity Management & Research Company ("FMR")                                     814,800                9.7%
- ------------------------------------------------------------------------ -- -------------- ----- ------------
Dimensional Fund Advisors, Inc. ("Dimensional Funds")                              452,050                5.4%
- ------------------------------------------------------------------------ -- -------------- ----- ------------
Raymond Soong                                                                      374,167 (5)            4.3%
- ------------------------------------------------------------------------ -- -------------- ----- ------------
C.H. Chen                                                                          150,000 (5)            1.8%
- ------------------------------------------------------------------------ -- -------------- ----- ------------
Michael R. Giordano                                                                107,625 (5)(6)         1.3%
- ------------------------------------------------------------------------ -- -------------- ----- ------------
Keh-Shew Lu                                                                          3,333 (5)             *
- ------------------------------------------------------------------------ -- -------------- ----- ------------
M.K. Lu                                                                             63,333 (5)             *
- ------------------------------------------------------------------------ -- -------------- ----- ------------
Shing Mao                                                                          146,000 (5)            1.7%
- ------------------------------------------------------------------------ -- -------------- ----- ------------
John M. Stich                                                                       19,333 (5)(7)          *
- ------------------------------------------------------------------------ -- -------------- ----- ------------
Joseph Liu                                                                         292,000 (5)            3.4%
- ------------------------------------------------------------------------ -- -------------- ----- ------------
Mark A. King                                                                       155,749 (5)            1.8%
- ------------------------------------------------------------------------ -- -------------- ----- ------------
Carl C. Wertz                                                                       72,187 (5)             *
- ------------------------------------------------------------------------ -- -------------- ----- ------------
All directors, nominees and executive officers as a group (10 persons)           1,383,727 (8)           14.4%
- ------------------------------------------------------------------------ -- -------------- ----- ------------
     * Less than 1%.


                                         (Footnotes continued on following page)


                                       4


(Footnotes continued from previous page)

(1)      The  address  of LSC is  9F.  No.  233-2,  Pao-Chiao  Road,  Hsin-Tien,
         Taipei-hsien  23115,  Taiwan,  R.O.C.  The address of the directors and
         executive  officers  of the  Company  is  3050  East  Hillcrest  Drive,
         Westlake Village, California 91362. The address of FMR is 82 Devonshire
         Street, Boston, MA 02109-3614. The address of Dimensional Funds is 1299
         Ocean Avenue, 11th Floor, Santa Monica, CA 90401.

(2)      The named  stockholder has sole voting power and investment  power with
         respect  to the  shares  listed,  except as  indicated  and  subject to
         community property laws where applicable.

(3)      Shares  which the person (or group) has the right to acquire  within 60
         days after the Record Date are deemed to be  outstanding in calculating
         the beneficial ownership and the percentage ownership of the person (or
         group) but are not deemed to be  outstanding  as to any other person or
         group.

(4)      LSC,  which  holds  3,067,639  shares of Common  Stock,  as the  record
         holder,  is a public  company  listed on the Taiwan OTC and a member of
         the  Lite-On  Group of  companies.  See  "Proposal  One -  Election  of
         Directors  - Certain  Relationships  and  Related  Transactions"  for a
         discussion  of the  relationship  among LSC,  the  Company  and certain
         directors and executive officers of the Company.

(5)      Includes  the  following  shares  of  Common  Stock,  which  the  named
         individual  has the right to  acquire  within 60 days  after the Record
         Date by the exercise of vested stock options:

                              NAMED INDIVIDUAL                       SHARES
                              ----------------                       ------
                              Raymond Soong                         244,167
                              C.H. Chen                             150,000
                              Michael R. Giordano                    67,500
                              Keh-Shew Lu                             3,333
                              M.K. Lu                                63,333
                              Shing Mao                             120,000
                              John M. Stich                          18,333
                              Joseph Liu                            277,000
                              Mark A. King                          155,749
                              Carl C. Wertz                          69,000

(6)      Includes 1,500 shares of Common Stock held in the name of UBS
          PaineWebber Trust for the IRA of Mr. Giordano.

(7)      Includes 1,000 shares of Common Stock held in a joint account with
          Mr. Stich's spouse.

(8)      Includes  1,168,415  shares that the directors  and executive  officers
         have the right to acquire  within 60 days after the Record Date, by the
         exercise of vested stock  options,  but excludes an additional  239,334
         shares that the directors and executive officers will have the right to
         acquire upon the exercise of stock  options,  which options will become
         exercisable in installments more than 60 days after the Record Date.


                      PROPOSAL ONE - ELECTION OF DIRECTORS

DIRECTORS AND EXECUTIVE OFFICERS

                  The  Company's  Bylaws  provide  that the number of  directors
shall be determined from time to time by the Board of Directors,  but may not be
less than five nor more than  seventeen.  Currently,  the Board of Directors has
fixed the number of  directors  at seven.  The Bylaws  further  provide  for the
election of each director at each annual meeting of stockholders.

                  The persons  named below have been  nominated  for election to
the Board of  Directors to serve until the next annual  meeting of  stockholders
and until their  successors  have been elected and qualified.  All nominees have
indicated their willingness to serve and, unless otherwise  instructed,  Proxies
will be voted in such a way as to elect as many


                                       5


of these nominees as possible under  applicable  voting rules. In the event that
any of the nominees should be unable to serve as a director, it is intended that
the Proxies will be voted for the election of such substitute nominees,  if any,
as shall be designated by the Board of Directors.  The Board of Directors has no
reason to believe that any nominee will be unavailable.

                  None of the  directors,  nominees  for  director or  executive
officers were selected pursuant to any arrangement or understanding,  other than
with the  directors and  executive  officers of the Company  acting within their
capacity as such. There are no family relationships among directors or executive
officers of the Company as of the date hereof,  and,  except as set forth, as of
the date hereof, no directorships are held by any director in a company that has
a class of  securities  registered  pursuant  to  Section  12 of the  Securities
Exchange  Act of 1934,  as  amended  (the  "Exchange  Act"),  or  subject to the
requirements  of Section 15(d) of the Exchange Act or any company  registered as
an investment company under the Investment  Company Act of 1940.  Officers serve
at the discretion of the Board of Directors.

                  The   following   table   sets  forth   certain   biographical
information  concerning the nominees for director and the executive  officers of
the Company as of the Record Date.



                                                                                                         DIRECTOR
OFFICERS AND DIRECTORS             AGE                     POSITION WITH THE COMPANY                      SINCE
- ------------------------------- ---------- ----------------------------------------------------------- -------------
                                                                                                  
Raymond Soong (1)                  61      Chairman of the Board of Directors                              1993
- ------------------------------- ---------- ----------------------------------------------------------- -------------
C.H. Chen (2)                      60      President, Chief Executive Officer and Director                 2000
- ------------------------------- ---------- ----------------------------------------------------------- -------------
Michael R. Giordano (3)            56      Director                                                        1990
- ------------------------------- ---------- ----------------------------------------------------------- -------------
Keh-Shew Lu (4)                    56      Director                                                        2001
- ------------------------------- ---------- ----------------------------------------------------------- -------------
M.K. Lu (5)                        54      Director                                                        1995
- ------------------------------- ---------- ----------------------------------------------------------- -------------
Shing Mao (6)                      67      Director                                                        1990
- ------------------------------- ---------- ----------------------------------------------------------- -------------
John M. Stich (7)                  61      Director                                                        2000
- ------------------------------- ---------- ----------------------------------------------------------- -------------
Joseph Liu (8)                     61      Vice President, Operations                                       --
- ------------------------------- ---------- ----------------------------------------------------------- -------------
Mark A. King (9)                   44      Vice President, Sales and Marketing                              --
- ------------------------------- ---------- ----------------------------------------------------------- -------------
Carl C. Wertz (10)                 48      Chief Financial Officer, Secretary and Treasurer                 --
- ------------------------------- ---------- ----------------------------------------------------------- -------------


(1)      Mr.  Raymond  Soong  has  been the  Chairman  of the  Board of  Silitek
         Corporation  since  1990 and has been  Chairman  of the  Boards of LSC,
         formerly  LPSC,  since 1992,  and  Lite-On  Technology  Corporation  (a
         Lite-On  Group   company),   since  1992.  In  October  2002,   Silitek
         Corporation   and  Taiwan  Lite-On   merged  with  Lite-On   Technology
         Corporation.  See "General  Information - Security Ownership of Certain
         Beneficial  Owners and  Management"  and  "Proposal  One - Election  of
         Directors  - Certain  Relationships  and  Related  Transactions"  for a
         discussion  of the  relationships  among Lite-On  Technology,  Silitek,
         LPSC, LSC and the Company. Since 1996, Mr. Soong has also been Chairman
         of the Board of FabTech, Inc. ("Diodes-FabTech" or "FabTech") (formerly
         a subsidiary  of LSC,  acquired by the Company in December  2000).  Mr.
         Soong is a graduate of the National  Taipei  Institute of  Technology's
         Electronic Engineering  Department.  After serving as a senior engineer
         for RCA and as a chief engineer for Texas Instruments, Inc. ("TI"), Mr.
         Soong, together with several of his co-workers,  founded Taiwan Lite-On
         Electronic Co. Ltd.  ("Taiwan  Lite-On"),  a manufacturer of electronic
         components and  subsystems,  in 1975. Mr. Soong is also Chairman of the
         Board of the  Company's  manufacturing  subsidiary  in Shanghai,  China
         ("Diodes-China"), and its Taipei, Taiwan subsidiary ("Diodes-Taiwan").



                                         (Footnotes continued on following page)


                                       6


(Footnotes continued from previous page)

(2)      Mr. C.H. Chen was appointed  President and Chief  Executive  Officer of
         the Company on March 30, 2000. From 1969 to 1990, Mr. Chen held various
         positions at TI, most recently as Vice President of TI-Taiwan. In 1990,
         he left TI to found Dyna Image  Corporation (a public company listed on
         the Taiwan OTC market), a Lite-On Group company and the world's leading
         supplier of contact image sensors  (CISs),  which are key components in
         fax machines and scanners.  In December  2000,  Dyna Image  Corporation
         merged with LPSC to form LSC. Mr. Chen is currently  the Vice  Chairman
         of LSC, Chairman of the Company's Strategic Planning  Committee,  and a
         director of Diodes-Taiwan and Diodes-FabTech.

 (3)     Mr.  Michael  R.  Giordano  joined  the   investment-banking   firm  of
         PaineWebber, Inc. as a Senior Vice President-Investment Consulting when
         PaineWebber,  Inc. acquired his previous  employer,  Kidder Peabody and
         Co.,  Inc. Mr.  Giordano was with Kidder  Peabody  since 1979. In 2000,
         PaineWebber,  Inc. merged with UBS AG to form UBS PaineWebber, Inc. Mr.
         Giordano  advises  corporations,  foundations,  trusts,  and  municipal
         governments in investments and finance. Formerly a captain and pilot in
         the United  States Air Force,  Mr.  Giordano  received  his Bachelor of
         Science  degree  in  Aerospace   Engineering   from  California   State
         Polytechnic   University   and   his   Masters   degree   in   Business
         Administration  (Management  and Finance) from the  University of Utah.
         Mr. Giordano also did post-graduate  work in International  Investments
         at Babson  College.  Mr.  Giordano  was Chairman of the Board and Chief
         Executive  Officer of the Leo D. Fields Co. from 1980 to 1990, when GWC
         Holdings  acquired it. Mr. Giordano serves on the Board of Directors of
         Professional  Business Bank in Pasadena,  California.  Mr.  Giordano is
         Chairman of the  Company's  Audit  Committee and the  Compensation  and
         Stock  Options  Committee,  and is a member of the  Strategic  Planning
         Committee.  Mr.  Giordano  is  also  the  pension  consultant  for  the
         Company's 401(k) plan.

(4)      In 2001,  Dr.  Keh-Shew Lu retired as Senior Vice  President  of TI and
         manager of Worldwide  Mixed-Signal  Products--Semiconductor  Group,  in
         which position he served since 1998. His responsibilities  included all
         aspects of the mixed-signal system and end-equipment  businesses for TI
         worldwide,   including   design,   process  and  product   development,
         manufacturing  and  marketing.  Dr. Lu's  business  areas  included the
         mixed-signal  portion  of TI's  digital  signal  processing  solutions,
         display  solutions,  and mixed-signal  wireless  communications and RF.
         From  1996  to  1998,  Dr.  Lu was  manager  of TI's  worldwide  memory
         business.  In  addition,  he served as  President  of TI Asia from 1994
         until 1998, where he had  responsibility  for all of TI's activities in
         Asia (excluding  Japan).  Since beginning his career at TI in 1974, Dr.
         Lu has held a number of technical and managerial  positions within TI's
         Semiconductor  Group,  including Vice President and division manager of
         the  Linear  Products  Division.  Dr. Lu holds a  bachelor's  degree in
         engineering  from the National Cheng Kung  University in Taiwan,  and a
         master's degree and doctorate in electrical engineering from Texas Tech
         University.  Dr. Lu is a director  of Zeevo,  Inc.,  a  privately  held
         emerging  developer of  Bluetooth  and  wireless  controller  products,
         Chairman of Asia  American  Citizen's  Council,  and is a member of the
         Advisory  Board  to  Southern  Methodist   University's  Asian  Studies
         Program.  Dr. Lu is also a director of two publicly  held  companies in
         Taiwan:   Lite-On  Technology   Corporation  and  Winbond   Electronics
         Corporation  ("Winbond").   Winbond  is  focused  on  the  development,
         manufacture,  and marketing of personal  computer,  telecommunications,
         and consumer electronics products.  Dr. Lu is a member of the Company's
         Compensation and Stock Options  Committee,  the Audit Committee and the
         Strategic Planning Committee.

(5)      Mr. M.K. Lu is  currently  President  of LSC, to which  position he was
         re-appointed  in March  2000.  In  November  1998,  Mr. Lu formed a new
         company, Actron Technology Corporation, and is also acting President of
         this  manufacturer of pressfit diodes for the automotive  market.  From
         1991 to June 1998,  Mr. Lu was President  and a director of LPSC.  From
         1983 to 1990, Mr. Lu was General Manager/Vice President of Silitek. See
         "General  -  Security   Ownership  of  Certain  Beneficial  Owners  and
         Management"  and  "Proposal  One -  Election  of  Directors  -  Certain
         Relationships  and  Related  Transactions"  for  a  discussion  of  the
         relationship among Silitek,  LPSC, LSC and the Company. Since 1995, Mr.
         Lu has been a director of FabTech.  Mr. Lu earned his Bachelor's degree
         in Electrical  Engineering  at Tatung  Institute of Technology and is a
         Business  Administration  graduate of the National Chengchi University.
         Mr. Lu is also a member of the Chinese  Management  Association and the
         Chinese Association for Advancement of Management, and is a director of
         Diodes-China.

                                         (Footnotes continued on following page)


                                       7


(Footnotes continued from previous page)

(6)      In 2000,  Dr.  Shing Mao  retired as  Chairman of the Board of Lite-On,
         Inc., a California corporation located in Milpitas,  California,  and a
         wholly owned subsidiary of Taiwan Lite-On,  in which position he served
         since 1988.  See "General  Information - Security  Ownership of Certain
         Beneficial  Owners and  Management"  and  "Proposal  One - Election  of
         Directors  - Certain  Relationships  and  Related  Transactions"  for a
         discussion  of the  relationship  among  Silitek,  LSC and the Company.
         Since 1989, Dr. Mao has been a director of Dyna Investment Co., Ltd. of
         Taiwan, a venture capital  company.  Dr. Mao was a director of LSC from
         1989 to 2000.  Since 1996, Dr. Mao has also been a director of FabTech.
         Before  joining  Lite-On,  Dr. Mao  served in a variety  of  management
         positions with Raytheon  Company for four years,  with TI for 11 years,
         and with UTL Corporation  (later  acquired by Boeing Aircraft  Company)
         for  seven  years.  Dr.  Mao  earned  his Ph.D.  degree  in  electrical
         engineering at Stanford  University in 1963. Dr. Mao is a member of the
         Company's  Strategic  Planning Committee and the Compensation and Stock
         Options Committee.

(7)      Mr. John M. Stich is the President and Chief  Executive  Officer of The
         Asian  Network;  a  consulting  company that  specializes  in assisting
         high-technology  companies to expand their  business in Asia.  Prior to
         this  position,  Mr.  Stich was the Chief  Marketing  Officer for TI in
         Japan with  responsibility  for TI's sales and  marketing in Japan from
         1994 to 1999.  Mr. Stich  joined TI in 1964,  and has served in various
         management positions,  including Marketing Manager for TI Asia in Tokyo
         from 1970 to 1972,  Marketing  Director  in  Taiwan  from 1978 to 1982,
         Managing  Director  of  TI-Hong  Kong  from  1982  to  1991,  and  Vice
         President-Semiconductors  for TI Asia from 1991 to 1994.  Mr. Stich has
         also been active in leading various  industry  associations,  including
         serving as Governor for the  American  Chamber of Commerce in Japan and
         in Hong Kong,  as Chairman of the  Semiconductor  Industry  Association
         (Japan  Chapter),  and as  President  of the Japan  America  Society of
         Dallas/Fort  Worth. Mr. Stich is also a member of the Advisory Board to
         Southern Methodist  University's Asian Studies Program and is President
         of Project Oasis, a non-profit  organization that helps needy children.
         Mr.  Stich  is  a  member  of  the  Company's  Audit   Committee,   the
         Compensation  and Stock Options  Committee  and the Strategic  Planning
         Committee.

(8)      In May 1998, Mr. Joseph Liu was appointed  President of Vishay/LPSC and
         Vice  President,  Far  East  Operations  for the  Company,  the  former
         position in which he served  until March  2000,  when Vishay  agreed to
         sell its 65% interest in the  Vishay/LPSC  joint venture to the Lite-On
         Group,  the 35% owner.  Mr.  Liu  continues  to serve as the  Company's
         Vice-President,   Operations.   Mr.  Liu  previously   served  as  Vice
         President,  Operations  of the  Company  from  1994 to 1998  and  Chief
         Financial  Officer,  Secretary and Treasurer from 1990 to 1998. Mr. Liu
         was also the  Company's  Vice-President,  Administration  from  1990 to
         1994.  Prior to joining the Company,  Mr. Liu held  various  management
         positions  with TI Dallas,  since  1971,  including  Planning  Manager,
         Financial Planning Manager,  Treasury Manager,  Cost Accounting Manager
         and General  Accounting  Manager with TI Taiwan,  Ltd. in Taipei;  from
         1981 to 1986 as  Controller  with TI Asia in  Singapore  and Hong Kong;
         from  1986 to 1989 as  Financial  Planning  Manager,  TI Latin  America
         Division  (for TI  Argentina,  TI Brazil and TI Mexico) in Dallas;  and
         from 1989 to 1990 as Chief  Coordinator of Strategic  Business  Systems
         for TI Asia Pacific Division in Dallas. Mr. Liu is also President and a
         director of Diodes-China and President of Diodes-FabTech. See "Proposal
         One -  Election  of  Directors  -  Certain  Relationships  and  Related
         Transactions" for a discussion of the relationship between Diodes-China
         and the Company.

(9)      Mr. Mark A. King, the Company's Vice  President,  Sales since 1991, was
         appointed  the  Company's  Vice  President,  Sales and Marketing in May
         1998.  Before  joining the  Company,  Mr. King served for nine years in
         various  sales  management  positions  at Lite-On,  Inc.,  a California
         corporation  located in Milpitas,  California,  and a  manufacturer  of
         optoelectronic products.

(10)     Mr. Carl C. Wertz,  the Company's  Controller since 1993, was appointed
         the Company's Chief Financial Officer, Secretary and Treasurer in 1998.
         Before joining the Company,  Mr. Wertz served in various  financial and
         accounting positions, most recently as Controller of Westco Products, a
         manufacturer  and distributor of food products,  headquartered  in Pico
         Rivera,  California.  Mr. Wertz,  a licensed CPA,  began his accounting
         career  with  Deloitte  &  Touche  LLP.  Mr.  Wertz  is a  director  of
         Diodes-China and Diodes-Taiwan.

                                       8


COMMITTEES OF THE BOARD OF DIRECTORS

                  The Board of  Directors  has a  standing  Audit  Committee,  a
Compensation and Stock Options Committee,  and a Strategic  Planning  Committee,
each of which  consists of two or more  directors who serve at the discretion of
the Board of Directors. The members of each Committee are as follows:



AUDIT COMMITTEE                COMPENSATION AND STOCK OPTIONS COMMITTEE         STRATEGIC PLANNING COMMITTEE
- ---------------                ----------------------------------------         -----------------------------
                                                                          
Michael R. Giordano*           Michael R. Giordano*                             C.H. Chen*
Dr. Keh-Shew Lu                John M. Stich                                    Michael. R. Giordano
John M. Stich                  Dr. Shing Mao                                    Dr. Shing Mao
                               Dr. Keh-Shew Lu                                  John M. Stich
* Chairman                                                                      Dr. Keh-Shew Lu


                  The  Audit  Committee  makes  recommendations  to the Board of
Directors  regarding  the  engagement  of the  Company's  independent  auditors,
reviews the plan,  scope and results of the audit,  reviews with  management the
Company's  policies  and  procedures  with  respect to internal  accounting  and
financial controls and reviews changes in accounting policy and the scope of the
non-audit services which may be performed by the Company's independent auditors.
The Audit Committee also monitors policies to prohibit  unethical,  questionable
or illegal activities by the Company's employees.

                  The   Compensation   and   Stock   Options   Committee   makes
recommendations to the Board of Directors regarding  compensation,  benefits and
incentive  arrangements for officers and other key employees of the Company. The
Compensation  and Stock Options  Committee also  administers  the Company's 1993
Incentive  Stock  Option Plan ("1993 ISO Plan"),  the 1993  Non-Qualified  Stock
Option Plan ("1993 NQO Plan"), the Incentive Bonus Stock Plan, and the Company's
401(k)  profit  sharing plan (the "401(k)  Plan"),  and the 2001 Omnibus  Equity
Incentive Plan.

                  The  Strategic  Planning  Committee  focuses  on  new  product
development, marketing, and research and development operations of the Company.

                  The Board of Directors held two meetings  during calendar year
2002. The  Compensation  and Stock Options  Committee held three  meetings,  the
Audit Committee held six meetings, and the Strategic Planning Committee held one
meeting during  calendar year 2002. All of the persons who were directors of the
Company or members of  committees  were present for at least 75% of the meetings
during calendar year 2002.

EMPLOYEE BENEFITS PLANS

         1993 ISO PLAN

                  The 1993  Incentive  Stock  Option  Plan (the "1993 ISO Plan")
provides for the grant of incentive  stock options within the meaning of Section
422 of the Internal  Revenue Code of 1986, as amended (the "Code"),  to purchase
up to 1,500,000 shares of the Company's Common Stock.  Options granted under the
1993 ISO Plan are not  transferable,  except by will or the laws of  descent  or
distribution.  A vested but  unexercised  option is normally  exercisable for 90
days after termination of employment,  other than by death or retirement. In the
event of death,  unvested options are accelerated to maturity. An option granted
under the 1993 ISO Plan may not be priced at less than 100% of fair market value
on the date of grant and  expires  ten years  from the date of grant.  As of the
Record Date, 453,113 shares have been issued on the exercise of options granted,
1,038,992  shares were  subject to  outstanding  options,  and 7,895 shares were
available for issuance  upon the grant of options  under the 1993 ISO Plan.  The
1993 ISO Plan expires on May 10, 2003 after which time no additional options can
be granted.

                                       9


         1993 NQO PLAN

                  The 1993 Non-Qualified Stock Option Plan (the "1993 NQO Plan")
became  effective on July 6, 1993.  The 1993 NQO Plan  provides for the grant of
options that do not qualify as incentive  stock options under Section 422 of the
Code to purchase up to  1,500,000  shares of the  Company's  Common  Stock.  The
options may be exercised by the optionee during his or her lifetime or after his
or her death by those who have  inherited  by will or  intestacy.  A vested  but
unexercised  option is normally  exercisable  for 90 days after  termination  of
employment,  other than by death or retirement.  In the event of death, unvested
options are  accelerated  to maturity.  The shares to be issued upon exercise of
options under the 1993 NQO Plan require a three-year  vesting period.  An option
granted  under  the 1993 NQO Plan may not be  priced  at less  than 100% of fair
market  value on the date of grant and expires ten years from the date of grant.
As of the Record  Date,  657,500  shares  have been  issued on the  exercise  of
options granted,  830,000 shares were subject to outstanding options, and 12,500
shares were  available for issuance upon the grant of options under the 1993 NQO
Plan.  The 1993 NQO Plan expires on May 10, 2003 after which time no  additional
options can be granted.

         2001 OMNIBUS EQUITY INCENTIVE PLAN

                  GENERAL. In April 2001, the 2001 Omnibus Equity Incentive Plan
(the "2001  Incentive  Plan") became  effective.  Under the 2001 Incentive Plan,
employees,  non-employee  directors  and  consultants  of the  Company  and  its
subsidiaries  are  eligible to receive  shares of Common Stock of the Company or
other  securities  or benefits with a value derived from the value of the Common
Stock of the Company.  The purpose of the 2001  Incentive  Plan is to enable the
Company to attract,  retain and motivate employees,  non-employee  directors and
consultants by providing for or increasing  their  proprietary  interests in the
Company and, thereby,  further align their interests with those of the Company's
stockholders.

                  The  maximum  number of shares  of  Common  Stock  that may be
issued  pursuant to awards  granted under the 2001 Incentive Plan may not exceed
the sum of (i) 1,000,000 shares and (ii) on each January 1, an additional number
of shares equal to 1% of the total number of shares of Common Stock  outstanding
on the immediately  preceding December 31; provided,  however,  that the maximum
number of shares of Common Stock that may be issued  pursuant to incentive stock
options under the 2001 Incentive Plan may not exceed 2,000,000 shares.

                  As of the  Record  Date,  no shares  have  been  issued on the
exercise of options granted, 324,000 shares were subject to outstanding options,
and 861,204  shares were  available for issuance upon the grant of options under
the 2001 Incentive Plan.

                  ADMINISTRATION.  The 2001 Incentive Plan is  administered by a
committee (the  "Committee")  of two or more  directors  appointed by the Board,
each of whom is an "outside  director"  within the meaning of Section  162(m) of
the Internal  Revenue Code of 1986, as amended (the  "Code"),  and who otherwise
comply with the  requirements  of Rule 16b-3  promulgated  under the  Securities
Exchange Act of 1934, as amended (the  "Exchange  Act").  The Committee has full
and final authority to select the recipients of awards and to grant such awards.
Subject to the provisions of the 2001  Incentive  Plan, the Committee has a wide
degree of flexibility in determining  the terms and conditions of awards and the
number of  shares to be issued  pursuant  thereto,  including  conditioning  the
receipt or vesting of awards upon the  achievement  by the Company of  specified
performance criteria.  The expenses of administering the 2001 Incentive Plan are
borne by the Company.

                  TERMS  OF  AWARDS.  The 2001  Incentive  Plan  authorizes  the
Committee to enter into any type of arrangement with an eligible recipient that,
by its terms,  involves  or might  involve the  issuance of Common  Stock or any
other  security or benefit with a value  derived from the value of Common Stock.
Awards are not  restricted to any  specified  form or structure and may include,
without limitation,  sales or bonuses of stock, restricted stock, stock options,
reload options,  stock appreciation rights, phantom stock, dividend equivalents,
performance  units or  performance  shares.  An award  may  consist  of one such
security or benefit or two or more of them in tandem or in the alternative.

                  An award granted under the 2001  Incentive  Plan may include a
provision  accelerating the receipt of benefits upon the occurrence of specified
events,  such  as  a  change  of  control  of  the  Company  or  a  dissolution,
liquidation, merger, reclassification, sale of substantially all of the property
and  assets of the  Company or other  significant  corporate  transactions.  The
Committee  may grant  options  that either are intended to be  "incentive  stock

                                       10


options" as defined  under  Section 422 of the Code,  or are not  intended to be
incentive options  ("non-qualified stock options").  Incentive stock options may
be granted only to employees.

                  No  incentive  stock  option  may be  granted  under  the 2001
Incentive  Plan to any person who, at the time of the grant,  owns (or is deemed
to own) stock possessing more than 10% of the total combined voting power of the
Company or any affiliate of the Company,  unless the option exercise price is at
least 110% of the fair  market  value of the stock  subject to the option on the
date of the grant and the term of the option does not exceed five years from the
date of the grant. In addition,  the aggregate fair market value,  determined at
the time of the  grant,  of the  shares of Common  Stock  with  respect to which
incentive stock options are exercisable for the first time by an optionee during
any calendar year (under all such plans of the Company and its subsidiaries) may
not exceed $100,000. As a result of enactment of Section 162(m) of the Code, and
to provide the Committee  flexibility in structuring  awards, the 2001 Incentive
Plan states that in the case of stock options and stock appreciation  rights, no
person may  receive in any year a stock  option to  purchase  more than  100,000
shares or a stock appreciation right measured by more than 100,000 shares.

                  If awards granted under the 2001  Incentive  Plan expire,  are
canceled or otherwise  terminate  without being exercised,  the Common Stock not
purchased  pursuant to the award again becomes  available for issuance under the
2001 Incentive Plan.  Awards may not be granted under the 2001 Incentive Plan on
or after the tenth anniversary of the adoption of the 2001 Incentive Plan.

                  PAYMENT OF EXERCISE  PRICE.  An award may permit the recipient
to pay all or  part of the  purchase  price  of the  shares  or  other  property
issuable  pursuant  thereto,  or to pay  all or part  of  such  recipient's  tax
withholding  obligation  with  respect  to  such  issuance,  by  (i)  delivering
previously  owned  shares of capital  stock of the Company or other  property or
(ii) reducing the amount of shares or other property otherwise issuable pursuant
to the award or (iii)  delivering a promissory note, the terms and conditions of
which  will  be  determined  by  the  Committee.  The  exercise  price  and  any
withholding taxes are payable in cash by consultants and non-employee directors,
although the Committee at its  discretion may permit such payment by delivery of
shares of Common Stock, or by delivery of broker instructions authorizing a loan
secured by the shares  acquired  upon  exercise or payment of proceeds  from the
sale of such shares.

                  AMENDMENT.  Subject to  limitations  imposed by law, the Board
may amend or terminate  the 2001  Incentive  Plan at any time and in any manner.
However, no such amendment or termination may deprive the recipient of any award
previously  granted  under  the 2001  Incentive  Plan or any  rights  thereunder
without the recipient's consent.

                  SECTION 16(B).  Pursuant to Section 16(b) of the Exchange Act,
directors,  certain  officers  and ten percent  shareholders  of the Company are
generally  liable to the  Company for  repayment  of any  "short-swing"  profits
realized from any non-exempt  purchase and sale of Common Stock occurring within
a six-month period. Rule 16b-3,  promulgated under the Exchange Act, provides an
exemption from Section 16(b) liability for certain transactions by an officer or
director  pursuant to an employee  benefit  plan that  complies  with such Rule.
Specifically,  the  grant of an  option  under an  employee  benefit  plan  that
complies  with  Rule  16b-3  will not be deemed a  purchase  of a  security  for
purposes of Section  16(b).  The 2001  Incentive Plan is designed to comply with
Rule 16b-3.

                  TERM.  Awards may not be granted under the 2001 Incentive Plan
on or after the tenth  anniversary of the adoption of the 2001  Incentive  Plan.
Although any award that was duly granted on or prior to such date may thereafter
be exercised or settled in accordance  with its terms, no shares of Common Stock
may be issued pursuant to any award on or after the twentieth anniversary of the
adoption of the 2001 Incentive Plan.

                  PERFORMANCE  GOALS. The business criteria on which performance
goals  are  based  under  the  2001  Incentive  Plan  will  be  determined  on a
case-by-case  basis,  except  that  with  respect  to stock  options  and  stock
appreciation  rights  compensation  is based on  increases  in the  value of the
Common Stock after the date of grant of award. Similarly,  the maximum amount of
compensation  that  could  be paid to any  participant  or the  formula  used to
calculate  the  amount  of  compensation  to be  paid  to the  participant  if a
performance goal is obtained will be determined on a case-by-case  basis, except
that in the case of stock  options the  maximum  possible  compensation  will be
calculated as the  difference  between the exercise  price of the option and the
fair market value of the Common Stock on the date of option exercise,  times the
maximum number of shares for which grants may be made to any participant.

                  ADJUSTMENTS.  If there is any  change in the stock  subject to
the 2001  Incentive  Plan or subject to any award made under the 2001  Incentive
Plan (through merger, consolidation,  reorganization,  re-capitalization,  stock
dividend,  dividend in kind, stock split,  liquidating dividend,  combination or
exchange  of shares,  change in  corporate


                                       11


structure  or  otherwise),  the  2001  Incentive  Plan  and  shares  outstanding
thereunder will be appropriately adjusted as to the class and the maximum number
of shares subject to the 2001 Incentive Plan and the class, number of shares and
price per share of stock  subject to such  outstanding  options as determined by
the  Committee  to be fair and  equitable  to the  holders,  the Company and the
shareholders. In addition, the Committee may also make adjustments in the number
of shares  covered  by, and the price or other value of any  outstanding  awards
under the 2001 Incentive  Plan in the event of a spin-off or other  distribution
(other than normal cash dividends) of Company assets to stockholders.

         INCENTIVE BONUS STOCK PLAN

                  The  Company's  Incentive  Bonus Stock Plan  provides that the
Board of Directors may fix a dollar value to an employee  bonus and determine to
pay such bonus in the form of shares of the  Common  Stock of the  Company.  The
number of shares to be awarded to the  employee is  determined  by dividing  the
dollar  amount  of the  bonus by the fair  market  value of one  share of Common
Stock.  The  Board of  Directors  may also  elect to grant a number of shares of
Common Stock to the employee.  As of the Record Date, 186,000 were available for
issuance under the Incentive Bonus Stock Plan.

         401(K) PLAN

                  The Company  maintains a 401(k)  profit  sharing plan ("401(k)
Plan") for the benefit of qualified  employees in North  America.  Employees who
participate may elect to make salary deferral  contributions  to the 401(k) Plan
up to 17% of the employees' eligible payroll, subject to annual Internal Revenue
Code maximum  limitations.  The Company makes a contribution  of $1 for every $2
contributed by the participant,  up to 6% of the participant's eligible payroll.
In addition, the Company may make a discretionary  contribution to the qualified
employees, in accordance with the 401(k) Plan.

COMPENSATION OF DIRECTORS

                  Each director of the Company  receives (i) a fee of $1,500 for
each meeting of the Board of Directors or committee  meeting attended in person,
and (ii) a fee of $750 for each meeting in which such director  participates  by
telephone.  The Board of Directors may modify such  compensation  in the future.
Both  employee and  non-employee  directors are eligible to receive stock option
grants.


      COMPLIANCE WITH SECTION 16(A) OF THE SECURITIES EXCHANGE ACT OF 1934

                  Under  Section  16(a)  of  the  Exchange  Act,  the  Company's
directors, executive officers and any persons holding ten percent or more of the
Common  Stock are  required to report  their  ownership  of Common Stock and any
changes in that  ownership  to the SEC and to furnish the Company with copies of
such reports. Specific due dates for these reports have been established and the
Company  is  required  to report any  failure to file on a timely  basis by such
persons.  Based  solely  upon a review of copies of  reports  filed with the SEC
during the calendar  year ended  December 31, 2002,  or written  representations
that no reports were necessary,  all reporting persons filed reports on a timely
basis. To avoid the inadvertent  failure of directors and executive  officers to
timely file these  reports,  the Company  periodically  advises  such persons of
their filing obligations.

                                       12


EXECUTIVE COMPENSATION AND RELATED INFORMATION

                 SUMMARY OF CASH AND CERTAIN OTHER COMPENSATION

                  The following table sets forth certain information  concerning
compensation  paid or accrued by the Company to its Chief Executive  Officer and
to each of the other four most highly compensated executive officers (the "Named
Executives")  for each of the fiscal years ended  December  31,  2000,  2001 and
2002:



                           SUMMARY COMPENSATION TABLE
                                                                                      LONG TERM COMPENSATION
                                                                                      ----------------------
                                               ANNUAL COMPENSATION                      AWARDS                     PAYOUTS
                                               -------------------                --------------------       --------------------
                                                                 OTHER                       SECURITIES
                                                                 ANNUAL         RESTRICTED    UNDERLYING                 ALL OTHER
NAME AND                                                     COMPENSATION        STOCK      OPTIONS/ SARS       LTIP   COMPENSATION
PRINCIPAL POSITION         YEAR  SALARY ($)       BONUS ($)     ($) (1)         AWARDS ($)        (#)        PAYOUTS($)        ($)
- ------------------         ----  ----------       ---------     ----------      ----------        ---        ----------        ---
- ----------------------- -------- ------------- ------------- -------------- ------------- --------------- ------------- ------------
                                                                                                
C.H. CHEN                  2002    150,000          210,000             --           --          50,000           --            --
President and              2001    150,000               --             --           --              --           --            --
Chief Executive            2000    112,500(2)       290,000             --           --         150,000           --            --
Officer
- ----------------------- -------- ------------- ------------- -------------- ------------- --------------- ------------- ------------
- ----------------------- -------- ------------- ------------- -------------- ------------- --------------- ------------- ------------
JOSEPH LIU                 2002    164,800          170,000         51,800           --          15,000           --            --
Vice President,            2001    160,000               --         42,100           --          12,000           --            --
Operations                 2000    160,000          244,000         52,600           --         108,000           --            --
- ----------------------- -------- ------------- ------------- -------------- ------------- --------------- ------------- ------------
- ----------------------- -------- ------------- ------------- -------------- ------------- --------------- ------------- ------------
MARK KING                  2002    164,800          140,000         32,400           --          12,000           --            --
Vice President, Sales      2001    160,000               --         22,200           --          12,000           --            --
and Marketing              2000    160,000          244,000             --           --          18,000           --            --
- ----------------------- -------- ------------- ------------- -------------- ------------- --------------- ------------- ------------
- ----------------------- -------- ------------- ------------- -------------- ------------- --------------- ------------- ------------
CARL WERTZ                 2002    123,600          100,000         24,500           --           9,000           --            --
Chief Financial            2001    120,000               --         18,500           --           9,000           --            --
Officer, Secretary         2000    120,000          176,200         30,000           --          13,500           --            --
and Treasurer
- ----------------------- -------- ------------- ------------- -------------- ------------- --------------- ------------- ------------
- ----------------------- -------- ------------- ------------- -------------- ------------- --------------- ------------- ------------
WALTER BUCHANAN            2002    240,200(3)            --             --           --              --           --    281,000(5,6)
Former President,          2001    255,600               --             --           --              --           --    150,000 (5)
Diodes-FabTech             2000     21,845(4)            --             --           --              --           --
                                                                                                                             --
- ----------------------- -------- ------------- ------------- -------------- ------------- --------------- ------------- ------------


 (1)     Certain of the Company's  executive  officers receive personal benefits
         in addition to salary and cash bonuses,  including, but not limited to,
         auto allowances,  per-diem,  life insurance payable at the direction of
         the employee,  contributions under the Company's 401(k) Plan, and group
         health  insurance.  This  amount is  reported  only when the  aggregate
         amount of such personal  benefits  exceeds the lesser of $50,000 or 10%
         of the total annual salary and bonus reported for the individual  Named
         Executive.

(2)      Mr. Chen was appointed President and Chief Executive Officer of the
          Company on March 30, 2000 at a base salary of $150,000 per year.

(3) Mr. Buchanan's employment was terminated in October 2002.


                                         (Footnotes continued on following page)


                                       13


(Footnotes continued from previous page)

(4)      Mr. Buchanan joined the Company in December 2000 as part of the
          Company's acquisition of FabTech, Inc.

(5)      Amounts paid are  accordance  with the terms of a management  incentive
         agreement as part of the FabTech acquisition, and these amounts paid by
         the Company are reimbursed by LSC, the selling party.

(6)      Includes severance pay of $131,000 paid in January 2003.


STOCK OPTION GRANTS

                  The following table contains  certain  information  concerning
the grant of stock options during the fiscal year ended December 31, 2002 to the
Named  Executives.  The Company  granted no Stock  Appreciation  Rights ("SARs")
during 2002.



                      OPTION/SAR GRANTS IN FISCAL YEAR 2002
- ---------------------------------------------------------------------------------------------------   ----------------------------
                                                                                                       POTENTIAL REALIZABLE VALUE
                                                                                                               AT ASSUMED
                                                                                                          ANNUAL RATES OF STOCK
                                                                                                         PRICE APPRECIATION FOR
                                        INDIVIDUAL GRANTS                                                TEN-YEAR OPTION TERM(1)
- ---------------------------------------------------------------------------------------------------    ----------------------------
                        NUMBER OF SECURITIES
                             UNDERLYING         PERCENT OF TOTAL
                            OPTIONS/SARS          OPTIONS/SARS        EXERCISE OR
                             GRANTED (#)           GRANTED TO         BASE PRICE         EXPIRATION
    NAME                                         EMPLOYEES (%)          ($/SH)              DATE           5% ($)        10% ($)
    ----                                         -------------          ------              ----           ------        -------
    ------------------- ---------------------- ------------------- ------------------ ----------------- ------------- --------------
                                                                                                        
    C.H. CHEN                   50,000                20.0                8.53           6/28/2012          268,224       679,731
    ------------------- ---------------------- ------------------- ------------------ ----------------- ------------- --------------
    JOSEPH LIU                  15,000                6.0                 8.53           6/28/2012           80,467       203,919
    ------------------- ---------------------- ------------------- ------------------ ----------------- ------------- --------------
    MARK A. KING                12,000                4.8                 8.53           6/28/2012           64,374       163,135
    ------------------- ---------------------- ------------------- ------------------ ----------------- ------------- --------------
    CARL C. WERTZ                9,000                3.6                 8.53           6/28/2012           48,280       122,352
   ------------------------------------------------------------------------------- ------------------------ ------------------------
Increase in market value of the Company's Common Stock for all stockholders     5% (to $13.89/share)     10% (to $22.12/share)
at assumed annual rates of stock price appreciation (as used in the table       --------------------     ---------------------
above) from $8.53 per share, over the  ten-year  period,  based upon  8,217,092    $44.1 million           $111.7 million
shares outstanding on December 31, 2002
- ------------------------------------------------------------------------------- ------------------------ ------------------------


(1)      The  Potential  Realizable  Value is the product of (a) the  difference
         between (i) the product of the closing sale price per share at the date
         of grant and the sum of (A) 1 plus (B) the assumed rate of appreciation
         of the Common Stock compounded annually over the term of the option and
         (ii) the per share  exercise  price of the option and (b) the number of
         shares of Common  Stock  underlying  the option at December  31,  2002.
         These amounts represent certain assumed rates of appreciation only. For
         example,  an $8.53 per share price with a 5% annual  growth rate for 10
         years  results  in a stock  price of $13.89  per share and a 10% growth
         rate results in a price of $22.12 per share.  Actual gains,  if any, on
         stock  option  exercises  are  dependent  upon a  variety  of  factors,
         including  market  conditions  and the price  performance of the Common
         Stock. No assurance can be made that the rate of appreciation presented
         in this table can be achieved.

                                       14


STOCK OPTION EXERCISES AND HOLDINGS

                  The following table contains certain  information with respect
to the Named  Executives  concerning  the exercise of options  during the fiscal
year  ended  December  31,  2002  and  unexercised  options  held  by the  Named
Executives as of December 31, 2002:



                                     AGGREGATED OPTION / SAR EXERCISES IN FISCAL YEAR 2002
                                             AND FISCAL YEAR-END OPTION VALUES (1)
                            SHARES                                                                 VALUE OF UNEXERCISED
                          ACQUIRED ON        VALUE              NUMBER OF UNEXERCISED           "IN-THE-MONEY" OPTIONS/SARS
NAME                     EXERCISE (#)     REALIZED ($)        OPTIONS/SARS AT 12/31/02 (#)           AT 12/31/02 ($) (2)
- ----                     ------------    ------------        ----------------------------      -----------------------------
                                                          EXERCISABLE       UNEXERCISABLE       EXERCISABLE     UNEXERCISABLE
                                                         ------------      --------------      ------------    --------------
- ----------------------- ---------------- --------------- ----------------- ------------------- --------------- ------------------
                                                                                                  
C.H. CHEN                     --               --            100,000            100,000                 0           54,000
- ----------------------- ---------------- --------------- ----------------- ------------------- --------------- ------------------
JOSEPH LIU                    --               --            271,000             29,000           938,310           26,520
- ----------------------- ---------------- --------------- ----------------- ------------------- --------------- ------------------
MARK A. KING                  --               --            149,749             26,000           658,724           23,280
- ----------------------- ---------------- --------------- ----------------- ------------------- --------------- ------------------
CARL C. WERTZ                 --               --             64,500             19,500           260,895           17,460
- ----------------------- ---------------- --------------- ----------------- ------------------- --------------- ------------------


(1)      All stock options have been adjusted to account for the Company's
          three-for-two stock split in July 2000.

(2)      The  value of  unexercised  "in-the-money"  options  is the  difference
         between  the  closing  sale  price  of the  Company's  Common  Stock on
         December  31,  2002  ($9.61 per share)  and the  exercise  price of the
         option, multiplied by the number of shares subject to the option.

REPORT OF THE COMPENSATION AND STOCK OPTIONS COMMITTEE
 OF THE BOARD OF DIRECTORS TO STOCKHOLDERS

                  The Report of the Compensation and Stock Options  Committee of
the Board of  Directors  shall not be deemed  incorporated  by  reference by any
general  statement  incorporating  by reference  this Proxy  Statement  into any
filing under the Securities Act of 1933 or under the Securities  Exchange Act of
1934,  except to the extent  that the  Company  specifically  incorporates  this
information  by  reference,  and shall not  otherwise be deemed filed under such
Acts.

             REPORT OF THE COMPENSATION AND STOCK OPTIONS COMMITTEE

         GENERAL

                  The Compensation and Stock Options Committee (the "Committee")
consists of four directors,  Michael R. Giordano (Chairman), Dr. Shing Mao, John
M. Stich and Dr.  Keh-Shew Lu who are not  employees or former  employees of the
Company. The Committee makes recommendations to the Board of Directors regarding
compensation,  benefits and  incentive  arrangements  for officers and other key
employees of the Company.  The Committee also administers the Company's 1993 ISO
Plan, the 1993 NQO Plan, the 2001 Omnibus Equity  Incentive  Plan, the Incentive
Stock Bonus Plan and the 401(k) Plan.

                  The Company's policy in compensating  executive officers is to
establish methods and levels of compensation that will provide strong incentives
to promote  the  profitability  and growth of the  Company  and reward  superior
performance.   Compensation   of  executive   officers   includes  base  salary,
performance-based  incentive  bonuses and  stock-based  programs.  The Company's
general  approach to  compensating  executive  officers is to pay cash  salaries
which are competitive with salaries paid to executives of other companies in the
Company's  industry,  which are of similar size and engaged in a similar line of
business.  Salaries are  established by the Committee  based on the  Committee's
subjective  assessment  of the  executive's  scope of  responsibility,  level of
experience,  individual performance,  and past and potential contribution to the
Company's business.

                  The Committee believes that the emphasis on  performance-based
and  stock-based  compensation  serves to align the  interests of the  executive
officers with the interests of the Company's  stockholders.  The Committee  also
seeks to establish overall compensation levels that are sufficiently competitive
to attract,  retain, and motivate highly competent  management  personnel.  Base
salaries  for Messrs.  Chen,  King,  Liu and Wertz are paid in  accordance  with
subjective  criteria set by the  President  and Chief  Executive  Officer of the
Company.  Performance-based  incentive


                                       15


bonuses are paid in  accordance  with  specific  financial  performance  results
against goals established prior to the start of the calendar year.

         COMPENSATION FOR THE PRESIDENT AND CHIEF EXECUTIVE OFFICER

     Mr. C.H. Chen was  appointed  President,  Chief  Executive  Officer,  and a
director  of the  Company on March 30,  2000.  Mr.  Chen also serves as the Vice
Chairman of LSC, a Lite-On  Group company (now listed on the Taiwan OTC market),
for which he is also  compensated by LSC. Stock options  granted to Mr. Chen are
based upon the Committee's  subjective assessment of the performance of Mr. Chen
and the Company.

         STOCK OPTIONS

     The  Committee  believes that the  interests of senior  management  must be
closely  aligned with those of the  Company's  stockholders.  Stock  options are
granted to officers and selected  employees whose  contributions  and skills are
important to the  long-term  success of the Company.  Stock  options  granted to
executive  officers  to date have been  granted at no less than the fair  market
value of the  Common  Stock as of the date of grant  with a  ten-year  term.  If
employment is terminated,  the option expires 90 days from the termination date.
To encourage retention,  the ability to exercise options granted under the plans
is  subject  to  vesting  restrictions.  The  Committee's  policy is to award an
initial grant at the date of employment, which vests over three years, and is in
recognition of the executive  officer's  potential  contribution to the Company.
The three-year  vesting period may be increased or decreased at the  Committee's
discretion.  Decisions  made by the  Committee  regarding the timing and size of
other option grants take into  consideration  the Company's and the individual's
performance,  competitive  market  practices,  and the size  and term of  option
grants made in prior years.

     The  Company's  stock  option  plans have been  amended and approved by the
stockholders  so stock  options that have been awarded can qualify for exclusion
under Section 162(m) of the Internal  Revenue Code of 1986 as  performance-based
compensation.

Dated:  April 17, 2003

Compensation and Stock Options Committee
 of the Board of Directors of Diodes Incorporated

Michael R. Giordano, Chairman
Dr. Shing Mao
John M. Stich
Dr. Keh-Shew Lu


COMPENSATION AND STOCK OPTIONS COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

     The  Compensation and Stock Options  Committee  consists of four directors,
Michael R. Giordano  (Chairman),  Dr. Shing Mao, John M. Stich and Dr.  Keh-Shew
Lu. No person who  served as a member of the  Company's  Compensation  and Stock
Options  Committee  during  the 2002  calendar  year has ever been an officer or
employee of the Company or any of its subsidiaries.


REPORT OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS TO STOCKHOLDERS

                  The Report of the Audit  Committee  of the Board of  Directors
shall  not  be  deemed  incorporated  by  reference  by  any  general  statement
incorporating  by  reference  this Proxy  Statement  into any  filing  under the
Securities Act of 1933 or under the Securities  Exchange Act of 1934,  except to
the extent  that the  Company  specifically  incorporates  this  information  by
reference, and shall not otherwise be deemed filed under such Acts.

                          REPORT OF THE AUDIT COMMITTEE

                  The Board of Directors  maintains an Audit Committee comprised
of three  of the  Company's  directors,  Michael  R.  Giordano  (Chairman),  Dr.
Keh-Shew Lu and John M.  Stich.  Each  member of the Audit  Committee  meets


                                       16


the  independence  and experience  requirements of the Nasdaq Stock Market.  The
Audit  Committee  assists the Board of Directors in monitoring  the  accounting,
auditing and financial reporting practices of the Company.

                  Management is responsible for the preparation of the Company's
financial  statements and financial  reporting process,  including its system of
internal  controls.  In  fulfilling  its oversight  responsibilities,  the Audit
Committee:

o                     Reviewed  and  discussed   with   management  the  audited
                      financial  statements  contained in the  Company's  Annual
                      Report on Form 10-K for fiscal 2002; and

o                     Obtained from  management  their  representation  that the
                      Company's  financial  statements  have  been  prepared  in
                      accordance with accounting  principles  generally accepted
                      in the United States.

                  The  independent  auditors are  responsible  for performing an
audit of the Company's  financial  statements  in  accordance  with the auditing
standards  generally  accepted in the United States and expressing an opinion on
whether the  Company's  financial  statements  present  fairly,  in all material
respects,  the Company's  financial  position and results of operations  for the
periods presented and conform with accounting  principles  generally accepted in
the United  States.  In  fulfilling  its oversight  responsibilities,  the Audit
Committee:

o                     Discussed  with  the  independent   auditors  the  matters
                      required  to  be   discussed   by  Statement  on  Auditing
                      Standards  No. 61, as amended  ("Communication  with Audit
                      Committees"); and

o                     Received and discussed with the  independent  auditors the
                      written  disclosures  and the letter from the  independent
                      auditors required by Independent  Standards Board Standard
                      No. 1 ("Independence  Discussions with Audit Committees"),
                      and reviewed and discussed with the  independent  auditors
                      whether the rendering of the non-audit  services  provided
                      by them to the Company  during fiscal 2002 was  compatible
                      with their independence.

                  The Audit Committee  operates under a written  charter,  which
was adopted by the Board of Directors  and is assessed  annually for adequacy by
the Audit Committee. The Audit Committee held six meetings during fiscal 2002.

                  In performing its functions,  the Audit Committee acts only in
an oversight  capacity.  It is not the  responsibility of the Audit Committee to
determine that the Company's financial statements are complete and accurate, are
presented in accordance with  accounting  principles  generally  accepted in the
United States or present fairly the results of operations of the Company for the
periods presented or that the Company maintains  appropriate  internal controls.
Nor is it the duty of the Audit  Committee  to  determine  that the audit of the
Company's financial statements has been carried out in accordance with generally
accepted auditing standards or that the Company's auditors are independent.

                  Based upon the reviews and discussions  described  above,  and
the report of the independent  auditors,  the Audit Committee has recommended to
the  Board of  Directors,  and the Board of  Directors  has  approved,  that the
audited financial  statements be included in the Company's Annual Report on Form
10-K for the fiscal year ended  December 31, 2002 for filing with the Securities
and Exchange Commission. The Audit Committee also has recommended, and the Board
of  Directors  also has  approved,  subject  to  stockholder  ratification,  the
selection of Moss Adams LLP as the Company's independent auditors for the fiscal
year ending December 31, 2003.

Dated:  April 17, 2003

The Audit Committee of the Board of Directors of Diodes Incorporated,

Michael R. Giordano, Chairman
Dr. Keh-Shew Lu
John M. Stich

                                       17


AUDIT COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

                  The Audit Committee  consists of three  directors,  Michael R.
Giordano, Dr. Keh-Shew Lu and John M. Stich. No person who served as a member of
the  Company's  Audit  Committee  during the 2002 calendar year has ever been an
officer or employee of the Company or any of its subsidiaries.



EQUITY COMPENSATION PLAN INFORMATION
- --------------------------------------------------------------------------------------------------------------------------
                                            NUMBER OF SECURITIES TO
                                            BE ISSUED UPON EXERCISE   WEIGHTED-AVERAGE
                                            OF OUTSTANDING OPTIONS,   EXERCISE PRICE OF        NUMBER OF SECURITIES
                                              WARRANTS AND RIGHTS   OUTSTANDING OPTIONS,     REMAINING AVAILABLE FOR
                                                      (A)            WARRANTS AND RIGHTS      FUTURE ISSUANCE UNDER
                                                                             (B)            EQUITY COMPENSATION PLANS
                                                                                              (EXCLUDING SECURITIES
                                                                                             REFLECTED IN COLUMN (A))
PLAN CATEGORY                                                                                          (C)
- --------------------------------------------------------------------------------------------------------------------------
                                                                                       
Equity Compensation Plans Approved by
   Security Holders                                2,384,492 (1)           $8.86                1,067,099 (2)
- --------------------------------------------------------------------------------------------------------------------------
Equity Compensation Plans Not Approved by
   Security Holders                                        0                 N/A                        0
- --------------------------------------------------------------------------------------------------------------------------
Total                                              2,384,492               $8.86                1,067,099
- --------------------------------------------------------------------------------------------------------------------------


         (1)      Shares issuable pursuant to outstanding options under the 1993
                  Non-qualified  Stock Option  Plan,  the 1993  Incentive  Stock
                  Option Plan, and the 2001 Omnibus Equity  Incentive Plan as of
                  December 31, 2002.

         (2)      Represents  shares of Company Common Stock which may be issued
                  pursuant  to future  awards  under the  Incentive  Bonus Stock
                  Plan,  the 1993  Non-qualified  Stock  Option  Plan,  the 1993
                  Incentive  Stock  Option  Plan,  and the 2001  Omnibus  Equity
                  Incentive Plan.

                                       18


PERFORMANCE GRAPH

                  On June 19, 2000, the Company's Common Stock commenced trading
on the NASDAQ Stock Market, National Market System ("Nasdaq"),  under the symbol
"DIOD."  From  November 10, 1966 to June 16, 2000,  the  Company's  Common Stock
traded on the American  Stock  Exchange  ("Amex"),  under the symbol  "DIO." Set
forth  below is a line  graph  comparing  the  yearly  percentage  change in the
cumulative  total  stockholder  return of the Company's Common Stock against the
cumulative total return of the Nasdaq Composite and the Nasdaq  Industrial Index
for the  five  calendar  years  ending  December  31,  2002.  The  graph  is not
necessarily indicative of future price performance.

                  The graph shall not be deemed incorporated by reference by any
general  statement  incorporating  by reference  this Proxy  Statement  into any
filing under the Securities Act or under the Exchange Act,  except to the extent
that the Company  specifically  incorporates this information by reference,  and
shall not otherwise be deemed filed under such Acts.



                                [GRAPH OMITTED]
    ---------------------------------------- -------- ------------ ----------- ------------ ------------ -----------
                                                                                         
    TOTAL RETURN ANALYSIS (1)                   1997         1998        1999         2000         2001        2002
    ---------------------------------------- -------- ------------ ----------- ------------ ------------ -----------
    DIODES INCORPORATED                        $ 100      $ 51.28    $ 220.51     $ 159.68     $ 102.34     $147.90
    ---------------------------------------- -------- ------------ ----------- ------------ ------------ -----------
    NASDAQ COMPOSITE INDEX                       100       139.63      259.14       157.32       124.20       85.05
    ---------------------------------------- -------- ------------ ----------- ------------ ------------ -----------
    NASDAQ INDUSTRIAL INDEX                      100       106.82      183.37       121.46       113.78       84.33
    ---------------------------------------- -------- ------------ ----------- ------------ ------------ -----------


(1)      The graph  assumes  $100  invested on  December  31, 1997 in the Common
         Stock  of the  Company,  the  stock  of  the  companies  in the  Nasdaq
         Composite Index and the Nasdaq Industrial Index, and that all dividends
         received within a quarter, if any, were reinvested in that quarter.


CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

                    The  Company  conducts   business  with  two  related  party
companies,  LSC, a public  company  listed on the Taiwan  OTC  market,  and Xing
International.  LSC, a 36.5% shareholder,  is the Company's largest shareholder,
and Xing  International  is owned by the Company's 5% joint  venture  partner in
Diodes-China,  Ms. J.Y.  Xing.  C.H.  Chen,  the  Company's  President and Chief
Executive  Officer,  and a member of the Company's  Board of Directors,  is also
Vice-Chairman of LSC. M.K. Lu, a member of the Company's Board of Directors,  is
President of LSC, while


                                       19


Raymond Soong,  the Company's  Chairman of the Board, is
the Chairman of Lite-On  Technology  Corporation,  a significant  shareholder of
LSC.

                  In 2002, the Company sold silicon wafers to LSC totaling 13.7%
(7.7%  in  2001)  of the  Company's  sales,  making  LSC the  Company's  largest
customer.  Also for 2002, 17.9% (15.2% in 2001) of the Company's sales were from
discrete  semiconductor  products  purchased from LSC,  making LSC the Company's
largest  outside vendor.  The Company has a long-standing  sales agreement where
the Company is the exclusive  North  American  distributor  for certain of LSC's
product lines. In addition,  the Company leases warehouse space from LSC for its
operations in Hong Kong. All such transactions are on terms no less favorable to
the Company than could be obtained from unaffiliated third parties.

                  In December  2000,  the Company  acquired  the wafer  foundry,
FabTech,  Inc.,  from LSC. As part of the purchase  price, at December 31, 2002,
LSC holds a subordinated,  interest-bearing note for approximately $8.8 million.
In May 2002,  the  Company  renegotiated  the  terms of the note to  extend  the
payment  period  from two  years  to four  years,  and  therefore,  payments  of
approximately  $208,000 plus interest began in July 2002. In connection with the
terms of the  acquisition,  LSC  entered  into a volume  purchase  agreement  to
purchase  wafers  from  FabTech.  In  addition,  as per the  terms of the  stock
purchase  agreement,  the Company has entered into several management  incentive
agreements with members of FabTech's management.  The agreements provide members
of FabTech's management guaranteed annual payments as well as contingent bonuses
based on the  annual  profitability  of  FabTech,  subject  to a maximum  annual
amount.  Any portion of the guaranteed and contingent  liability paid by FabTech
is reimbursed by LSC.

                  In 2002, the Company sold silicon wafers to companies owned by
Xing International totaling 1.5% (0.6% in 2001) of the Company's sales. Also for
2002,   5.6%  (4.4%  in  2001)  of  the  Company's   sales  were  from  discrete
semiconductor products purchased from companies owned by Xing International.  In
addition,  Diodes-China leases its manufacturing facilities from, subcontracts a
portion of its  manufacturing  process (metal plating) to, and pays a consulting
fee to Xing International.  All such transactions are on terms no less favorable
to the Company than could be obtained from unaffiliated third parties.  Ms. J.Y.
Xing is also a director of Diodes-China.

                  In October  2002,  Silitek  and  Taiwan  Lite-On  merged  with
Lite-On  Technology  Corporation,  a publicly traded company on the Taiwan Stock
Exchange.  Prior to this merger, Silitek was affiliated through common ownership
and control with Taiwan Lite-On,  and both companies were members of the Lite-On
Group and publicly traded on the Taiwan Stock Exchange.

                  Mr. Raymond  Soong,  who became a director and Chairman of the
Board of the Company effective March 1993, is also the Chairman of the Boards of
the Lite-On Group, Lite-On Technology Corporation,  Diodes-China,  Diodes-Taiwan
and Diodes-FabTech.

                  Dr. Shing Mao,  who is a director of the  Company,  retired in
2000 as Chairman of the Board of Lite-On Milpitas, a wholly-owned  subsidiary of
Taiwan Lite-On which merged with Lite-On Technology Corporation in 2002. Dr. Mao
was  also a  director  of LSC from  1989 to 2000,  and  since  1996,  has been a
director of FabTech.

                  Mr.  M.K.  Lu, who has been a director  of the  Company  since
1995,  is also  President  of LSC and  acting  President  of  Actron  Technology
Corporation, both Lite-On Group companies. From 1983 to 1990, Mr. Lu was General
Manager/Vice President of Silitek. Mr. Lu is also a director of Diodes-China and
Diodes-FabTech.

                  Mr.  Michael  Giordano,  a director  of the Company and Senior
Vice  President-Investment  Consulting  at the  investment-banking  firm  of UBS
PaineWebber,  Inc.,  has,  from time to time,  assisted  directors and executive
officers of the Company in stock option  exercises and subsequent stock sales of
the Company's Common Stock. Mr. Giordano is also the pension  consultant for the
Company's 401(k) plan. Mr. Giordano has, from time to time,  assisted  directors
and officers of the Company and LSC in stock transactions. Compensation received
by Mr. Giordano for services  rendered to the Company and LSC for services other
than as a director in 2002 was less than $20,000.

                  Mr.  John  M.  Stich,  a  director  of the  Company,  is  also
President and CEO of The Asian Network.  Mr. Stich has previously  received fees
as a marketing consultant to the Company. During 2002, Mr. Stich did not perform
marketing consulting services for the Company, and thus received no fees.

                                       20


                  Dr. Keh-Shew Lu, a director of the Company,  retired as Senior
Vice  President  of  TI  and  manager  of  Worldwide   Mixed-Signal  Products  -
Semiconductor Group in 2001. During 2002, Dr. Lu received  approximately $46,000
as an  engineering  consultant  to the  Company.  Dr. Lu is also a  director  of
Lite-On Technology Corporation.

                  Mr. Mark A. King,  the Company's  Vice  President of Sales and
Marketing,  has a $100,000  investment in one of the Company's computer software
vendors (a privately-held company). Mr. King's investment was made subsequent to
the Company's purchase of the software,  which is used for quotation and channel
management. Fees paid to this software vendor in 2002, including annual software
maintenance, were approximately $35,000.

                 THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR"
                THE ELECTION OF THE BOARD OF DIRECTORS' NOMINEES.

     PROPOSAL TWO - RATIFICATION OF THE APPOINTMENT OF INDEPENDENT AUDITORS

                  The firm of Moss Adams LLP,  certified  accountants,  has been
the Company's  independent  accountants  since 1993 and has been selected by the
Board of Directors to serve as its independent accountants for the calendar year
ending December 31, 2003.  Professional  services rendered by Moss Adams LLP for
the calendar year ended December 31, 2002 consisted of an audit of the Company's
financial  statements,  consultation on interim financial  statements,  services
related to filings with the SEC, meetings with the Company's Audit Committee and
consultation on various matters relating to accounting and financial  reporting.
All professional  services  rendered by Moss Adams LLP during calendar 2002 were
furnished  at  customary  rates and terms.  The Audit  Committee of the Board of
Directors  met with  representatives  of Moss Adams LLP during the past calendar
year. The members of the Audit  Committee are Messrs.  Giordano,  Lu, and Stich.
Representatives  of Moss Adams LLP are  expected  to be present at the  Meeting.
They will have the  opportunity  to make a  statement,  if they so  desire,  and
respond to appropriate questions from Stockholders.

AUDIT FEES, TAX FEES, AND ALL OTHER FEES

                  For the fiscal year ended December 31, 2002, fees for services
provided by Moss Adams LLP were approximately as follows:

 --------------------------------------------------------------- --------------
 AUDIT FEES,  including audit of financial statements included in
 the  Annual  Report on Form 10-K and  Quarterly  Reports on Form
 10-Q                                                                $ 128,000
 --------------------------------------------------------------- --------------
 AUDIT-RELATED FEES, including assurance related fees                $       0
 --------------------------------------------------------------- --------------
 TAX  FEES,   professional   services  for  income  tax  return
 preparation, tax advice and tax planning                            $  51,000
 --------------------------------------------------------------- --------------
 ALL OTHER FEES, include Audit Committee  meetings,  accounting
 consulting and similar matters                                      $  33,000
 --------------------------------------------------------------- --------------
 TOTAL                                                               $ 212,000
 --------------------------------------------------------------- --------------

                  Moss Adams LLP has advised the Company  that neither the firm,
nor any member of the firm, has any financial interest,  direct or indirect,  in
any  capacity  in the  Company  or its  subsidiaries.  The Audit  Committee,  in
reliance on the  independent  auditors,  determined  that the provision of these
services is compatible with maintaining the independence of Moss Adams LLP.

                  Stockholders are being asked to ratify the appointment of Moss
Adams LLP as the Company's  independent public accountants for the calendar year
ending December 31, 2003.  Ratification of the proposal requires the affirmative
vote of a majority of the shares of Common Stock  represented  and voting at the
Meeting.

                 THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR"
            THE RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS.

                                       21

                            PROPOSALS OF STOCKHOLDERS

                  Under  certain  circumstances,  stockholders  are  entitled to
present proposals at stockholder  meetings.  Any such proposal to be included in
the proxy statement for the Company's 2004 annual meeting of  stockholders  must
be  submitted  by a  stockholder  prior to  December  30,  2003,  in a form that
complies  with  applicable  regulations.  Recently,  the SEC  amended  its  rule
governing a company's ability to use discretionary  proxy authority with respect
to stockholder proposals, which are not submitted by the stockholders in time to
be  included in the proxy  statement.  As a result of that rule  change,  in the
event a stockholder  proposal is not submitted to the Company prior to March 15,
2004,  the  proxies  solicited  by the Board of  Directors  for the 2004  annual
meeting of  stockholders  will confer  authority  of the holders of the proxy to
vote the shares in  accordance  with their best  judgment and  discretion if the
proposal is presented  at the 2004 annual  meeting of  stockholders  without any
discussion of the proposal in the proxy statement for such meeting.

                           ANNUAL REPORT AND FORM 10-K

                  The Company's  annual report to stockholders  for the calendar
year ended December 31, 2002  accompanies or has preceded this Proxy  Statement.
The annual report contains consolidated  financial statements of the Company and
its  subsidiaries  and the  report  thereon of Moss  Adams  LLP,  the  Company's
independent  auditors,  for the calendar years ended December 31, 2000, 2001 and
2002.

                  STOCKHOLDERS  MAY  OBTAIN,  WITHOUT  CHARGE,  A  COPY  OF  THE
COMPANY'S ANNUAL REPORT ON FORM 10-K, INCLUDING FINANCIAL STATEMENTS REQUIRED TO
BE FILED WITH THE SEC PURSUANT TO THE EXCHANGE  ACT, FOR THE CALENDAR YEAR ENDED
DECEMBER 31, 2002, BY WRITING TO THE COMPANY;  ATTN:  INVESTOR  RELATIONS,  3050
EAST HILLCREST DRIVE,  WESTLAKE VILLAGE,  CALIFORNIA 91362, OR EMAIL THE REQUEST
TO  DIODES-FIN@DIODES.COM.  THE  INFORMATION  IS ALSO AVAILABLE ON THE COMPANY'S
WEBSITE AT WWW.DIODES.COM.


                                  OTHER MATTERS

                  Management  knows of no business  that will be  presented  for
consideration at the Meeting other than as stated in the Notice of Meeting.  If,
however,  other  matters are  properly  brought  before the  Meeting,  it is the
intention of the  Proxyholders to vote the shares  represented by the Proxies on
such matters in accordance with the recommendation of the Board of Directors and
authority to do so is included in the Proxy.

                  On December 4, 2000,  the SEC adopted  amendments to the proxy
rules,   permitting   companies  and  intermediaries  to  satisfy  the  delivery
requirements  for proxy and  information  statements with respect to two or more
security holders sharing the same address by delivering a single proxy statement
or information  statement to those security holders.  "Householding," as this is
commonly known,  will reduce the amount of duplicate  information  that security
holders receive and lower printing and mailing costs for companies. Householding
is in effect for the Company's proxy  distribution.  However,  Stockholders  can
obtain additional material if desired by contacting the Company directly.

                  Dated at Westlake Village, California, this seventeenth day of
April 2003.

                               By Order of the Board of Directors,

                               DIODES INCORPORATED

                                               /s/ Carl Wertz
                                               Carl Wertz,
                                               Secretary

                                       22


REVOCABLE PROXY                                                  REVOCABLE PROXY

                               DIODES INCORPORATED
                  ANNUAL MEETING OF STOCKHOLDERS - JUNE 2, 2003
                THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS

         The undersigned  stockholder(s) of Diodes  Incorporated (the "Company")
hereby  nominates,  constitutes  and appoints C.H.  Chen and Carl C. Wertz,  the
attorneys,   agents  and  proxies  of  the  undersigned,   with  full  power  of
substitution, to vote all stock of the Company which the undersigned is entitled
to vote at the annual meeting of  stockholders of the Company (the "Meeting") to
be held at the Renaissance  Hotel,  30100 Agoura Road, Agoura Hills,  California
91301,  on  Monday,  June 2,  2003 at  10:00  a.m.  (California  time),  and any
adjournments  thereof,  as  fully  and with the same  force  and  effect  as the
undersigned might or could do if personally thereat, as follows:

1.       ELECTION OF DIRECTORS

[   ]  FOR all nominees listed below                   [   ]  WITHHOLD AUTHORITY
(except as marked to the contrary below)      vote for all nominees listed below
Discretionary authority to cumulate votes is granted

Nominees:  C.H. Chen, Michael R. Giordano, Keh-Shew Lu, M.K. Lu, Shing Mao,
 Raymond Soong, and John M. Stich.

(Instructions:  To  withhold  authority  to vote for any one or more  nominees,
 write  that  nominee's  or  nominees' name(s) in the space provided)

- --------------------------------------------------------------------------------

2. RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS

         TO  ratify  the   appointment  of  Moss  Adams  LLP  as  the  Company's
         independent  certified public  accountants for the year ending December
         31, 2003.

         FOR [   ]         AGAINST [   ]             ABSTAIN [   ]


3.       OTHER BUSINESS

         In their  discretion,  the Proxyholders are authorized to transact such
         other  business  as  properly  may  come  before  the  Meeting  and any
         adjournment thereof.

         FOR [   ]         AGAINST [   ]             ABSTAIN [   ]



                      Please Sign And Date On Reverse Side


                                       23


REVOCABLE PROXY                                                  REVOCABLE PROXY

         THE BOARD OF DIRECTORS  RECOMMENDS A VOTE OF "FOR" THE ELECTION OF EACH
OF THE  NOMINEES,  AND "FOR"  RATIFICATION  OF MOSS  ADAMS LLP AS THE  COMPANY'S
INDEPENDENT  CERTIFIED PUBLIC ACCOUNTANTS FOR THE YEAR ENDING DECEMBER 31, 2003.
ALL  PROPOSALS  TO BE ACTED  UPON ARE  PROPOSALS  OF THE  COMPANY.  IF ANY OTHER
BUSINESS IS PROPERLY  PRESENTED AT THE MEETING,  INCLUDING,  AMONG OTHER THINGS,
CONSIDERATION  OF A MOTION TO ADJOURN  THE  MEETING TO ANOTHER  TIME OR PLACE IN
ORDER TO SOLICIT ADDITIONAL PROXIES IN FAVOR OF THE RECOMMENDATIONS OF THE BOARD
OF DIRECTORS,  THIS PROXY SHALL BE VOTED BY THE  PROXYHOLDERS IN ACCORDANCE WITH
THE  RECOMMENDATIONS  OF A MAJORITY OF THE BOARD OF DIRECTORS.  AT THE DATE THIS
PROXY  STATEMENT WENT TO PRESS, WE DID NOT ANTICIPATE ANY OTHER MATTERS WOULD BE
RAISED AT THE ANNUAL MEETING.

         The  undersigned  hereby  ratifies and confirms all that said attorneys
and Proxyholders, or either of them, or their substitutes,  shall lawfully do or
cause to be done by  virtue  hereof,  and  hereby  revokes  any and all  proxies
heretofore  given by the  undersigned  to vote at the Meeting.  The  undersigned
hereby  acknowledges  receipt  of the  Notice  of Annual  Meeting  and the Proxy
Statement accompanying said notice.

                                         Date:
                                               -----------------------

                                               ------------------------
                                             (Name of Stockholder, Printed)

                                                -----------------------
                                               (Signature of Stockholder)

                                                -----------------------
                                             (Name of Stockholder, Printed)

                                                -----------------------
                                               (Signature of Stockholder)

                                                              (Please  date this
                                                              Proxy   and   sign
                                                              your  name  as  it
                                                              appears   on  your
                                                              stock
                                                              certificate(s).
                                                              Executors,
                                                              administrators,
                                                              trustees,     etc.
                                                              should  give their
                                                              full  titles.  All
                                                              joint       owners
                                                              should sign.)

     I (We) do [  ]             do not [  ]      expect to attend  the Meeting.






         This Proxy will be voted "FOR" the election of all nominees whose names
appear  above  unless  authority  to do  so is  withheld.  Unless  "AGAINST"  or
"ABSTAIN" is indicated,  the Proxy will be voted "FOR" the  ratification  of the
appointment  of Moss Adams LLP as the  Company's  independent  auditors.  PLEASE
SIGN,  DATE AND RETURN THIS PROXY AS PROMPTLY AS POSSIBLE IN THE POSTAGE PREPAID
ENVELOPE PROVIDED.

                                       24