1

Credit Suisse Asian Technology ConferenceCredit Suisse Asian Technology Conference

September 7th, 2006September 7th, 2006

2

Safe Harbor Notice

Any statements set forth that are not historical facts are forward‐looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward‐looking statements.  

Potential risks and uncertainties include, but are not limited to, such factors as fluctuations in product demand, the introduction of new products, the Companyʹs ability to maintain customer and vendor relationships, technological advancements, impact of competitive products and pricing, growth in targeted markets, risks of foreign operations, foreignexchange rates, and other information detailed from time to time.

3

Company Snap Shot

Taiwan Stock Exchange 5305.TWPrice (09/06/2006) NT$ 28.3052 Week High/Low NT$ 42.65 – 24Shares Outstanding 433 millionMarket Capitalization NT$ 12.25 billion

Revenue (2005) NT$ 9.9 billionEPS (2005) NT$ 3.13

Dividend Yield about 4%P/E (FY2005) 8.7Price/Book 1.6

4

Organization Chart

Lite‐ On Semiconductor Corp

ThePhilippines

HsinTien

SeefullFactory

WuxiFactory

KeelungFactory

6” Wafer FabHsin Chu

WuxiFactory

22.6%

100% 100%

Diodes Inc.Symbol : DIOD

Semiconductor Components Biz Group

Semiconductor Components Biz GroupImage Biz Group

5

Founder Dyna Image (Lite‐On 14 yrs)Vice‐Chairman/Director of Diodes Inc 21 yrs with Texas Instruments, VP‐Taiwan

C.C. ChenExecutive VPDiscrete & Analog            Division

David Lee CFO & Spokesperson of Lite‐On Semiconductor since 2000CFO                                  6 yrs with Lite‐On Power Semiconductor

9 yrs with Silitek

M. K. Lu 24 yrs with Lite‐On GroupPresident                         8 yrs with Texas Instruments

Production, Planning & IT Background

R.J. Hong 13 yrs with Lite‐On GroupG.M. of                              10 yrs with Texas InstrumentsImage BG                          Production, Planning Background

C. H. ChenVice Chairman

Experienced Management Team

Dr. Chen joined Lite‐On Semiconductor in 2005 17 yrs with Texas InstrumentsEngineering, Marketing and Product Management Background

6

2005 Major Products Revenue & Shipments

Image Business Group      56%

•• Q1 Q1 –– Q4 05 Revenue = NT$1.4+ B Q4 05 Revenue = NT$1.4+ B ((‐‐19% YoY)19% YoY)

•• Q1 Q1 –– Q4 05 shipment = 8.5+ MQ4 05 shipment = 8.5+ M((‐‐ 8.3% YoY)8.3% YoY)

••Q1 Q1 ‐‐ Q4 05 Revenue = Abt  900 M Q4 05 Revenue = Abt  900 M ( 350% + ( 350% + YoYYoY))

••Q1 Q1 –– Q4 05 Shipment = Q4 05 Shipment = abtabt 4+ M4+ M(300%+ (300%+ YoYYoY))

Mono  Mono  Absolute #1Absolute #1

#2 in Taiwan #2 in Taiwan DiscreteDiscrete

CCM CCM COB PioneerCOB Pioneer

Color    Color    Global Top 3Global Top 3

•• Q1 Q1 –– Q4 05 Revenue = NT$3.3+BQ4 05 Revenue = NT$3.3+B(+ 5 %  YoY)(+ 5 %  YoY)

•• Q1 Q1 –– Q4 05Shipment =  11+ MQ4 05Shipment =  11+ M(28% YoY)(28% YoY)

•• Q1 Q1 –– Q4 05 Revenue = NT$3.7+ BQ4 05 Revenue = NT$3.7+ B(3% YoY)(3% YoY)

FoundryFoundry

•• June June –– December Revenue = NT$674MDecember Revenue = NT$674M

BipolarCMOSBCD

Semiconductor Business Group       44%

7

Performance in 2006 Q 2 & 1H

8

Q2 ‘06 Major Products Revenue & Shipments

Mono  Mono  Absolute #1

ColorColorGlobal Top 3Absolute #1 Global Top 3

•• Q2 06 Revenue = NT$1.0+ BQ2 06 Revenue = NT$1.0+ B( + 38 %  ( + 38 %  YoYYoY, , +15% +15% QoQQoQ))

•• Q2 06 Shipment =  4+ MQ2 06 Shipment =  4+ M( + 56% ( + 56% YoYYoY, , +20% +20% QoQQoQ )

•• Q2 06 Revenue = NT$310 M Q2 06 Revenue = NT$310 M ( ( ‐‐14+% 14+% YoYYoY, , ‐‐2.5% 2.5% QoQQoQ))

•• Q2 06 shipment = about 1.8MQ2 06 shipment = about 1.8M( ( ‐‐ 23% 23% YoYYoY,  ,  ‐‐4% 4% QoQQoQ) ))

Discrete & AnalogDiscrete & AnalogCCMCCM

COB PioneerCOB Pioneer•• Q2 Revenue = about NT$1.08 BQ2 Revenue = about NT$1.08 B(+ 24% (+ 24% YoYYoY, , + 5 %+ 5 %QoQQoQ))

FoundryFoundry

•• Q2 Revenue = about NT$422 MQ2 Revenue = about NT$422 M(+ 26% (+ 26% QoQQoQ)

•• Q2 06 Revenue =  Abt 150 MQ2 06 Revenue =  Abt 150 M( ( ‐‐ 18% + 18% + YoYYoY, , ‐‐13% 13% QoQQoQ))

•• Q2 06 Shipment = Abt  500+ K Q2 06 Shipment = Abt  500+ K ( ( ‐‐ 39% 39% YoYYoY, , ‐‐36% 36% QoQQoQ))

)

9

Q2 2006 Highlights – QoQ Comparison

In NT MillionsIn NT Millions 1Q 2006* 2Q 2006* QoQ

Amount % Amount % %

Net Sales 2,734 100.0 2,982 100.0 9.1

COGS 2,325 85.0 2,524 84.6 8.6

Gross Profit 409 15.0 458 15.4 12

Operating Expense 297 10.8 304 10.2 2.4

Operating Profit 112 4.1 154 5.2 37.5

Other Income/Expense 314 11.5 50 1.7 ‐84

Profit Before Tax 426 15.6 630 21.2 47.9

Profit After Tax 382 13.9 215 ‐43.7

After Tax EPS (adjusted) 0.90 0.51 ‐43.3

* Consolidated

10

Q2 2006 Highlights – YoY Comparison

In NT MillionsIn NT Millions 2Q 2005* 2Q 2006* YoY

Amount % Amount % %

Net Sales 2,268 100.0 2,982 100.0 31.5

COGS 1,889 83.2 2,524 85.0 33.6

Gross Profit 379 16.7 458 15.4 20.8

Operating Expense 233 10.3 304 10.2 30.4

Operating Profit 146 6.4 154 5.2 5.5

Other Income/Expense 44 2.1 50 1.7 13.6

Profit Before Tax 190 8.4 204 6.8 7.4

Profit After Tax 190 8.4 215 7.2 13.2

After Tax EPS 0.56 0.51 ‐8.9

EPS Adjusted(08.’06) 0.50 0.51 2.0

* Consolidated

11

Interim Report Highlight – YoY Comparison

In NT MillionsIn NT Millions YTD 1H 2005* YTD 1H 2006* YoY

Amount % Amount % %

Net Sales 4,195 100.0 5,717 100.0 36.3

COGS 3,454 82.3 4,849 84.6 36.8

Gross Profit 742 17.7 868 15.2 17

Operating Expense 443 11.4 602 10.5 35.9

Operating Profit 299 6.1 266 5.2 ‐11

Other Income/Expense 116 3.4 365 6.4 214.7

Profit Before Tax 415 9.6 630 9.6 51.8

Profit After Tax 362 8.5 597 8.5 64.9

EPS 1.09 1.51 38.5

EPS (adjusted) 1.02 1.41 38.2

*Consolidated

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Year 2006 1H Balance Sheet

in Million NTD                                                   1H 06            1H 05

Cash & Cash Equivalent 1,157 1,145A/R 2,435 2,529Inventory 1,026 1,227Total Current Assets 4,996 5,302Total Fixed Assets 5,145 5,103Total Assets 13,466 12,755A/P 1,900 1,619Total Current Liabilities 4,565 5,955Long Term Liabilities 1,533 1,205Total Liabilities 6,626 7,656Total Shareholdersʹ Equity 6,841 5,099

13

3Q Guidance & Looking Forward

14

What We Promised vs. What We Delivered 

Guidance Actual

** Q1 06 Revenue    ‐ 4.2%  QoQ 

+ 41.9%  YoY

*  Q1 Gross Profit  15%, +1.5% improvement  QoQ

*  Q2 Revenue grow 9.1%  QoQ31.5% YoY

*  Q2 Gross Profit 15.4%+0.4% improvement QoQ

*  Operating Profit from 4.1% to5.2%

* Q1 06 Revenue ‐5% to ‐10%  QoQ 35%+  YoY

*   Gross Profit Margin 1 ~ 2% QoQimprovement

*   Q2 06 Revenue about 10% QoQ25%+ YoY

*   Q2 06 Profit Margin 1 ~ 2% QoQimprovement 

15

2006 Q3 Guidance

● Q3 06 Revenue increase about 5% , QoQ, about 10% YoY

Financial Outlook

Business Outlook FY

●Color :         Target to grow revenue by about 20%  FYR

●CCM :          Target to expand market share & hold a position in tier 1 customer

●Mono :         Sustain # 1 position in W/W Market share; 

●Discrete :     Aim to enlarge market share; Concentrate on keyproducts, expand the high profit Analog product

●Foundry :     Break even in July, expect to contribute to EPS

16

Industry Momentum

in 2006 & the Road Ahead

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Global Semiconductor Market 2003~2008  Forecast

SIA World Semiconductor Forecast

M USD

Semiconductor ‘03 –’08 CAGR : 13.2%Sensor ’03 – ’08 CAGR : 15.6%

Opto ’03 – ’08 CAGR : 17.0%Discrete ’03 - ;08 CAGR : 7.1%

IC ’03 – ’08 CAGR : 13.4%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Sensor 3,569 4,767 4,556 5,329 6,240 7,361 Opto 9,545 13,726 14,966 16,402 18,162 20,940 Discrete 13,347 15,762 15,357 15,930 17,342 18,851 IC 139,965 178,772 192,733 207,826 229,601 262,004

2003 2004 2005 (E) 2006 (E) 2007 (E) 2008 (E)

Source : SIA Nov. 2005

166,426

213,067

309,156

227,613245,488

271,355

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Global Total Power Management Forecast

0

10,000

20,000

30,000

40,000

2004 2005 (E) 2006 (E) 2007 (E) 2008 (E) 2009 (E)

Total Power Management

Year 2004 2005 (E) 2006 (E) 2007 (E) 2008 (E) 2009 (E)Voltage Regulators 5,476 6,123 6,872 8,190 9,840 11,574Interface / Auto Ics 5,778 6,191 6,693 7,414 8,279 8,986Rectifiers 2,256 2,374 2,469 2,616 2,838 2,980Thyristors 805 801 891 925 979 943Power Transistors 7,093 6,994 7,682 8,769 10,133 10,853Total Power Mgt. 21,408 22,483 24,607 27,914 32,069 35,336

Unit : M USD

M USD‘04 –’09 CAGR : 10.5%

Source : iSuppli 4Q 2005

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Global Inkjet MFP Shipments 2003‐2008 Forecast

25,455

34,458

42,813

48,40653,659

57,058

0

10,000

20,000

30,000

40,000

50,000

60,000Inkjet MFP accounted for 87% of total Global units and will increase to 91.5% by 2008

Year 2003 2004 2005 2006(E) 2007(E) 2008(E)Growth % 117% 35% 24% 13% 11% 6%

LSC Growth % 350% 80% 28% 30% Outperform Outperform

Source : 2005 IDC

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World wide Mobile Phone & CCM  Market Forecast

0

200

400

600

800

1000

1200

Mobile Handsets CCM 

Year 2005 2006 2007 2008Mobile Handsets 801 910 1002 1127CCM  372 514 660 780

Source : IDC, LSC Consolidated

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2006 Sales Distribution Projection

2006 (E) 

Discrete

36% CCM

6%

CIS

43%

New

Products2%

Foundry

14%

2005

CIS

47%

CCM

9%

Discrete

37%

Foundry

7%

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LSC’ Golden Egg ‐ Diodes Inc Corp

LSC Golden Egg – Diodes Inc

0

50,000

100,000

150,000

200,000

250,000

1998 1999 2000 2001 2002 2003 2004 2005

Sales Gross Profit Margin Net Income

(in  thousands  USD)1998 1999 2000 2001 2002 2003 2004 2005

Sales 60,121 78,245 116,079 93,210 115,821 136,905 185,703 214,765Gross  Profit Margin 15,402 20,948 37,427 14,179 26,710 36,528 60,735 74,377

Net Income 2,673 5,569 14,895 124 5,802 10,095 25,551 33,329Basic  EPS 0.16 0.33 0.82 0.01 0.32 0.53 1.27 1.44D iluted  EPS 0.15 0.30 0.72 0.01 0.29 0.47 1.10 1.29

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Conclusion

Strong Historical Performance• 23% Revenue CAGR (2001-2005)• 56% Net Income CAGR (2001-2005)• 14 Consecutive years of profit

Improving Near-term Margins• Increasing ASPs and growth in Discrete market• Increasing capacity utilization at the 6 inch fab

Entry into High-growth, Higher-margin Markets• Analog and Power Management solutions • In-house team developing new products

Attractive Valuation• Low P/E relative to peers•Ownership in Diodes (22.6%) – market value NT $18 per share

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• Appendix

25

•• Q1 06 Revenue = NT$317 M Q1 06 Revenue = NT$317 M ( ( ‐‐29% YoY)29% YoY)

•• Q1 06 shipment = about 2MQ1 06 shipment = about 2M( ( ‐‐ 16% YoY)16% YoY)

•• Q1 06 Revenue =  Abt 170 MQ1 06 Revenue =  Abt 170 M( + 145% + YoY)( + 145% + YoY)

•• Q1 06 Shipment = Abt  800+ K Q1 06 Shipment = Abt  800+ K ( + 119% YoY)( + 119% YoY)

Mono  Mono  Absolute #1Absolute #1

DiscreteDiscrete#2 in Taiwan#2 in Taiwan CCMCCM

COB PioneerCOB Pioneer

Q1 ‘06 Major Products Revenue & Shipments

ColorColorGlobal Top 3Global Top 3

•• Q1 06 Revenue = NT$886 MQ1 06 Revenue = NT$886 M( + 41 %  YoY)( + 41 %  YoY)

•• Q1 06 Shipment =  3+ MQ1 06 Shipment =  3+ M( + 70% YoY)( + 70% YoY)

•• Q1 Revenue = about NT$103 MQ1 Revenue = about NT$103 M(+ 16% YoY)(+ 16% YoY)

FoundryFoundry

•• Q1 Revenue = about NT$335 MQ1 Revenue = about NT$335 M

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Q1 2006 Highlights –YoY Comparison

In NT MillionsIn NT Millions 1Q 2005* 1Q 2006* YoY

Amount % Amount % %

Net Sales 1,927 100.0 2,734 100.0 41.9

COGS 1,565 81.2 2,325 85.0 48.6

Gross Profit 363 18.8 409 15.0 12.7

Operating Expense 210 10.9 297 10.8 41.4

Operating Profit 153 7.9 112 4.1 ‐26.8

Other Income/Expense 68 2.0 314 11.5 362

Profit Before Tax 221 11.5 426 15.6 92.8

Profit After Tax 172 8.9 382 13.9 122

After Tax EPS 0.53 0.97 83

EPS Adjusted(08.’06) 0.46 0.90 96

* Consolidated

27

Q1 2006 Highlights –QoQ Comparison

In NT MillionsIn NT Millions 4Q 2005* 1Q 2006* QoQ

Amount % Amount % %

Net Sales 2,855 100.0 2,734 100.0 ‐4.2

COGS 2,470 86.5 2,325 85.0 ‐1.0

Gross Profit 385 13.5 409 15.0 1.5

Operating Expense 285 10 297 10.8 0.8

Operating Profit 100 3.5 112 4.1 0.6

Other Income/Expense 92 3.2 314 11.5 8.3

Profit Before Tax 192 6.7 426 15.6 8.9

Profit After Tax 141 4.9 382 13.9 9.0

After Tax EPS 0.33 0.97 193

EPS adjusted (08’06) 0.31 0.90 190* Consolidated

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2005 Revenue Distribution

Mono21%

Discrete41%

Color35%

CCM3%

2004

2005

CCM9%

Discrete37%

CIS47%

Foundry7%

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2005 Consolidated Quarterly

NT Millions 1Q 2Q 3Q 4Q

Net Sales 1,927 2,268 2,866 2,855

COGS 1,565 1,889 2,509 2,470

Gross Profit 363 379 356 385

Operating Profit 153 146 63 100

Other Income/Expense 68 44 732 92

Profit before Tax 221 190 795 192

Profit After Tax 172 190 674 141

EPS 0.53 0.56 1.7 0.34

EPS (adjusted) 0.46 0.50 1.66 0.31

* Quarterly results do not include Anachip. Revised 08.22.06

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f3 Years Consolidated Financials

In NT MillionsIn NT Millions YTD 2003 YTD 2004* YTD 2005*

Amount % Amount % Amount

9,916

8,433

1,483

1,021

462

936

1,398

1,177

After Tax EPS2.01 3.01 3.13

2.93

%

Net Sales 6,621 100.0 8,778 100.0

COGS 5,304 80.1 6,903 78.6

100.0

85

15

10.3

4.7

9.4

14.1

12

Gross Profit 1,317 19.8 1,875 21.3

Operating Expense 646 9.7 791 9

Operating Profit 671 10.1 1,083 12.3

Other Income/Expense 92 1.3 141 1.6

Profit Before Tax 763 11.5 1,224 13.9

Profit After Tax 615 9.2 982 11.1

EPS Adjusted

* Year end results for 2005 do not include Anachip.

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A Solid Company with Stable Growth & Profitability

0

2,000

4,000

6,000

8,000

10,000

12,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

0

500

1,000

1,500

2,000

2,500

3,000

 Revenue Profit after Tax

Units : Million NTD

32

Track Record of Growth & Profitability

3,5324,643

6,621

8,7789,916

0

2000

4000

6000

8000

10000

12000

2001 2002 2003 2004 2005

Revenue*

CAGR 23%

Unit : NTD Million

*2005 results do not include Anachip’s revenues

33

Track Record of Growth & Profitability

Net Income

CAGR 56%

Unit : NTD Million

128

341

615

982

1,177

0

200

400

600

800

1000

1200

1400

2001 2002 2003 2004 2005

Net Income

CAGR 56%

* 2005 result does not include Anachip

34

Track Record of Growth & Profitability

0.45

1.17

2.01

3.01 3.13

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2001 2002 2003 2004 2005

Earnings per Share

CAGR 47%

Unit : NTD Million

Y e a r 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5

C a s h 0 . 5 0 . 7 3 1 . 4 1 . 4S t o c k s 0 . 4 0 . 4 0 . 7 3 0 . 6 0 . 6

35

Track Record of Growth & Profitability

3.70

8.90

14.40

22.2821.50

0

5

10

15

20

25

2001 2002 2003 2004 2005

ROE

CAGR 42%

36

Defined growth initiatives for the future