Diodes recognizes that environmental responsibility is integral to producing world-class products. We understand the impact our operations have on the environment, the community, as well as the health and safety of our employees, contractors, and suppliers. We are committed to ensuring environmentally sustainable business practices and to help minimize the environmental impact of our supply chain.
Please refer to our Environmental Policy and Climate Change Policy. We expect our suppliers and vendors to also subscribe to standards and commitments described in these policies so that we collectively manage a responsible supply chain.
As such, Diodes has based its Code of Conduct on the Responsible Business Alliance (RBA) Code of Conduct, formerly the Electronic Industry Citizenship Coalition (EICC), to ensure that business operations are environmentally responsible and compliant, at a minimum, with applicable environmental laws and regulations of the countries in which they have operations. Diodes’ direct suppliers are expected to implement the Code of Conduct as well as an adequate management system to ensure continued compliance with this code.
Diodes internal manufacturing sites are certified to the ISO 14001 environmental management system standard. The expectation for external suppliers is to be ISO 14001 certified as well or, as a minimum, to submit a plan to become certified.
We enforce rigorous product compliance with the EU Directive regarding the Restriction of Hazardous Substances (RoHS) 2011/65/EU and the REACH Directive 2006/1907 on the Registration, Evaluation, Authorization and Restriction of Chemicals. We provide customers with information on the chemical composition of the materials used in our products, as further described in our master Certificate of Compliance (master CofC).
Diodes is also committed to conflict-free sourcing of Tin, Tantalum, Tungsten, and Gold—which are widely used in manufacturing in the semiconductor industry. These metals are derived from minerals that have a variety of sources around the world. One potential source has historically been the Eastern region of the Democratic Republic of Congo (DRC). That region is currently the site of armed conflict, and mining profits by local military groups there are reportedly contributing to human rights abuses, environmental damage, and theft from DRC citizens. Diodes Incorporated requires its suppliers to undertake reasonable due diligence with their supply chains to assure that these metals are not being sourced from the DRC or adjoining countries, unless they are purchased from smelters or refiners that are listed as “conflict-free” on the Responsible Minerals Initiative (RMI) website. Diodes Incorporated has surveyed its relevant suppliers of components and raw materials concerning the origins of these metals. The result of this survey, in the form of the RMI/CFSI reporting template, can be found in our Conflict Minerals Report.
Resource Conservation Efforts
We intend to protect and preserve the environment and provide a safe and healthy workplace for all employees. We are committed to the continual improvement of environmental protection and health and safety performance, as well as compliance with all applicable laws, regulations, permits, internal worldwide standards, and other social responsibility requirements to which we subscribe. We recognize the impact of our business operations on the environment, the ecosystem, and the communities in which we work and our employees reside. Consistent with our commitment to environmental stewardship, and as reflected in our company Code of Conduct, we have policies and processes in place that incorporate assessment of environmental impact as part of our business decision making process. With a continual focus on resource use efficiencies, we re-use and recycle resources where possible, and we also adopt the following measures to provide an ecofriendly working environment:
Our resource conservation efforts not only contribute to overall operating cost reduction, in some instances, they are also recognized by local governments in the form of financial incentives. For example, in China, we received recognition for our deployment of an electricity online monitoring system and LED lighting projects.
We continue to review business opportunities and monitor local government initiatives and incentives so as to leverage innovative technologies and solutions to enhance energy cost savings and help reduce impact on climate change and greenhouse gas emissions.
Last Updated: July 2020
Diodes Incorporated designs, manufactures, and delivers high-quality semiconductor products to the world’s leading companies in the consumer electronics, computing, communications, industrial, and automotive markets. Our expanded product portfolio of discrete, analog, and mixed-signal products and leading-edge packaging technology are developed to meet our customers’ needs, and we are committed to continual improvement. Our worldwide operations of 31 engineering, testing, manufacturing, and customer service sites enable us to be a premier provider for high-volume, high-growth markets.
Our commitments to environmental sustainability as a responsible corporate citizen are to:
Our environmental policy has four main objectives:
Please click here for a PDF copy of our Environmental Policy
Last Updated: July 2020
Diodes Incorporated recognizes our responsibility as a global corporate citizen to do our part to minimize our contribution to climate change. Operating in a sustainable way benefits the economic, social, and environmental interests of our company, our employees, and the customers and communities we serve.
Climate change creates risks for our company and our industry. Our facilities are subject to the physical risks associated with increasing temperatures and extreme weather conditions. We depend on critical raw materials and natural resources that are subject to scarcity. We are subject to regulatory and legislative constraints which may impact the manufacture of our products.
As part of our business operations, we ship billions of semiconductor devices to our customers worldwide. During the design, development, and manufacture of those devices, we consume raw materials, chemicals, energy, and water. Our manufacturing processes produce wastewater and solid waste. Our operations generate greenhouse gases and other emissions that contribute to climate change.
Protecting the environment represents an important challenge and valuable opportunity to our operations and to the semiconductor manufacturing industry. To address this challenge, Diodes has prioritized reduced generation of greenhouse gases and improvements in energy efficiencies across our entire enterprise.
In addition to complying with all relevant regulations and established industry guidelines, Diodes is committed to establishing goals and objectives which reduce our overall carbon footprint and support energy conservation, reduced water usage, and minimized waste generation.
Please click here for a PDF copy of our Climate Change Policy
Last Updated: August 2020
Diodes Incorporated recognizes climate change as a global risk as it affects the environmental, social, and economic landscape of the communities in which we live and work. Since semiconductor manufacturing is an energy-intensive process, our manufacturing sites as well as office buildings are contributors to our carbon footprint. The majority of our energy is consumed within our wafer fabrication and assembly and test facilities with energy required to maintain very demanding physical and climate conditions for production of our products in a clean room environment. We are strongly committed to reducing energy consumption and improving energy efficiency across our operations in our 31 sites worldwide. In addition, we focus on developing and manufacturing products that help reduce power consumption and minimize energy requirements when included in our customers’ applications.
As a responsible corporate citizen, our commitments to minimize the impact on climate change are:
• Conduct corporate-wide energy assessments to derive suitable and reasonable measures for further increasing energy efficiency and reducing total energy usage and consumption;
• Measure and reduce electricity usage in our manufacturing sites;
• Reduce energy consumption from the electric grid and increase usage of renewable energy;
• Drive and invest in energy conservation programs;
• Reduce energy intensity of our manufacturing processes;
• Deploy energy efficient manufacturing and office equipment and modify energy efficiency of existing equipment in manufacturing sites and office buildings;
• Implement equipment for active heat recovery;
• Support sustainable energy management of our facilities, i.e. use of high efficiency lighting technologies and HVAC systems, powering down unutilized equipment; and
• Design semiconductor products with optimized energy consumption performance to support our customers’ expectations for energy efficient end applications.
Click here for a downloadable PDF copy of the above policy.
Sustainable Water Management
Water scarcity is a topic of global attention as it presents a high impact risk to our planet. The semiconductor manufacturing industry is a water-intense business. Increasing complexity in semiconductor manufacturing processes may contribute to an increased need for water consumption and higher level of water purity. Our water comes from public sources as we rely primarily on local municipal supplies for our water source and do not use groundwater or rainwater. Water quality is essential to semiconductor manufacturing and there is a potential risk of water pollution that is under constant scrutiny, particularly in certain areas in Asia where we have manufacturing sites. Reliable continuity of water supply is critical to our operations and each manufacturing site is responsible for managing its specific water-related risks.
Sustainable use of an essential natural resource such as water is critical to safeguarding our business continuity and the communities around us. We are committed to managing water resources responsibly and we leverage industry best practices for efficient water management. Our water management efforts contribute to the United Nations’ Sustainable Development Goals target 6.4 aimed to substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity. Through our continuous and focused efforts to collect data and measure our water usage at each of our manufacturing sites, we identify opportunities to implement water conservation measures. We carefully monitor water usage across these manufacturing sites and set goals to minimize water consumption. We also maintain an environmental management system in accordance with the requirements of ISO-14001 to manage our water usage in a sustainable manner.
Water Usage and Operational Impact
We conduct water stress assessments by leveraging the Aqueduct Water Risk Atlas tool provided by WRI. Water stress is defined as the total annual water withdrawals (municipal, industrial, and agricultural) as a percent of the total annual available surface water. Industrialization and urbanization are key contributors to increased water stress levels, as observed in many parts in China. The water stress classification level identifies locations that have higher exposure to water-related risks. Based on the WRI tool, the water stress classification of our current manufacturing sites is as follows:
Water Stress Classification
Number of Manufacturing Sites
Locations of Manufacturing Sites
Low to Medium
Taiwan, Germany, England, and China (Chengdu)
Diodes is constantly looking for ways to optimize water usage, implement water-saving technologies and manage water usage responsibly. Water reuse and recycling is a key aspect of the water conservation efforts within our manufacturing facilities. Semiconductor manufacturing equipment requires ultrapure water that is generated from a reverse osmosis water filtration process. Concentrated wastewater produced from this reverse osmosis process is graded and filtered for reuse in our manufacturing facilities where possible. Several of our manufacturing facilities are equipped to further recycle wastewater that cannot be sufficiently purified for manufacturing use. Such recycled wastewater, including condensate from facility air handler units, is used for non-potable facilities support such as landscape water supply or sanitation purposes. These water conservation activities reduce the amount of wastewater that is treated and returned to municipal sewer systems.
Our water efficiency data across the last several years show positive trends in wastewater reduction. In recognition of our efforts specific to our Shandong facility, which is located in an area classified as Extremely High water stress, we received a “Water-saving Corporate Enterprise Award” from the China Shandong Development & Reform Commission, Housing and Urban Development Office, and Shandong Industry and Information Technology Office. We are evaluating the installation of a 24-hour onsite water storage facility at certain manufacturing site(s) to further mitigate water scarcity and water withdrawal risks and the resultant impact to our production, in addition to recycling and reusing the water from our operations.
Our manufacturing sites in Chengdu, China and Germany have included water financial savings goals in their operational performance goals. Even in the absence of specific financial savings goals, each manufacturing site constantly strives to conserve water resources.
Investment in Water Conservation Projects
In 2020, as part of Diodes’ overall resource conservation efforts, Diodes made capital investments in excess of $200K USD to upgrade its DI (de-ionized) water treatment system at its manufacturing site in Germany. The resultant benefits include annual financial savings of more than $10K USD, reduced water consumption by more than 300 m³ per year, reduced electrical energy consumption by more than 30KWh per year, reduced chemical usage and reduced maintenance manpower requirements and associated costs. This cost-effective system upgrade also helps reduce potential water quality issues that may impact our products while extending the lifetime of certain of our manufacturing equipment.
Spotlight on Shanghai manufacturing site:
As part of our commitment to operate in a sustainable manner, we continue to evaluate programs and invest in infrastructure to improve operational efficiency and reduce impact to the environment. For example, during the period between 2018 and 2020, Diodes invested over US$2,000,000 in two assembly and test manufacturing sites located in Shanghai, China to upgrade the wastewater recycle systems and install online wastewater monitoring programs. In 2020, we also approved approximately US$280,000 in capital investment to upgrade the wastewater treatment system at our wafer fabrication facility in Shanghai, China. In addition to adhering to the applicable laws and regulations in the countries where we operate, we continue to leverage available infrastructure technologies and collaborate with local governmental agencies to identify opportunities for continued improvement and to further reduce environmental impact.
California Proposition 65
California Proposition 65, officially known as the Safe Drinking Water and Toxic Enforcement Act of 1986 , was enacted in November 1986. Proposition 65 protects the state's drinking water sources from being contaminated with chemicals known to cause cancer, birth defects or other reproductive harm, and requires businesses to inform individuals in the State of California about possible exposures to chemicals known to the State of California to cause cancer or reproductive toxicity and described in the Proposition 65 List. Learn more about Proposition 65 here.
Proposition 65 requires businesses to provide “clear and reasonable warning” to consumers if their products contain one or more of the chemicals on the Proposition 65 List. A Proposition 65 warning does not necessarily mean a product is in violation of any product-safety standards or requirements. While Diodes does not sell directly to consumers, our products will be incorporated in end products that are sold to consumers. As a component manufacturer, we have concluded that most of our products contain at least one substance included in the Proposition 65 List.
For products sold into the State of California, the following label, or similar, is affixed to the product packaging:
We regularly review the Proposition 65 List and reserve the right to amend this label as necessary.
Semiconductor manufacturing processes are complex and require the use of an assortment of materials and chemicals during the wafer fabrication and product assembly operations. We recognize the risks and unfavorable consequences on the environment and the health and safety of people, as well as our brand image, profits, and financial situation if the waste from our operations is not disposed of appropriately. Therefore, we are fully committed to minimizing any waste generated from our operations and disposing of such waste safely and responsibly so as to protect the environment, and the health and safety of our employees and the communities in which we operate.
Our waste management programs cover various waste streams generated by our operations and products, and an analysis of our waste streams helps inform us of the appropriate waste segregation, treatment, and management approaches. Reducing waste at the source is a critical component of our waste management program. We prioritize actions and encourage employees to reduce, reuse, recycle, and recover whenever possible, rather than to dispose of waste at landfills.
Our various manufacturing processes can generate potentially hazardous waste, including chemical substances. We regularly monitor the type of waste generated from our manufacturing facilities, including both hazardous (e.g. batteries, accumulators, oily sludge, acid, resin) and non-hazardous waste (e.g. cardboard, paper, glass, food waste, plastic bottles, metal cans, wooden pallets). Both hazardous wastes and non-hazardous wastes are recycled, incinerated, or disposed of at landfills. We comply with applicable laws and regulations relating to the use, storage, and handling of chemicals, as well as the disposal of any potentially hazardous waste. Where appropriate, we engage waste management service providers to transport, treat, and dispose of waste generated from our operations.
In 2019, our manufacturing sites globally generated a total of 1,306 tons of hazardous waste. We recycled approximately 228 tons (17%) of the hazardous waste generated. Recycled waste included residual, organic and hydraulic oils, fluorescent tubes, H2SO4-HSPO4, nitric acids and liquids containing zinc, nickel and gold. We generated 748 tons of non-hazardous waste with approximately 73% recycled, 26% incinerated and 1% going to landfills.
Please refer to our sustainability website for more information on Responsible Use of Materials and Chemicals in our Products, including our compliance with RoHS (Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment) and REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) Directives.
Waste Reduction Initiatives
We have implemented waste management programs and practices as part of our commitment to reuse and recycle materials. Cognizant of the potential hazardous impact of certain chemicals, where appropriate, we also have chemical waste management programs. Our facilities around the world update their recycling programs periodically to decrease non-hazardous waste generation and increase diversion rates, or the amount kept out of the landfills.
We leverage responsible packaging practices to reduce waste generation. This in turn reduces our overall shipping costs and positively impacts our financial performance. For example:
We also recycle production and packaging waste such as oil, solvents, cardboard, foam, plastics, bubble wrap, and paper products. This waste reduction initiative expands beyond manufacturing as we encourage our employees to engage in recycling activities, including using reusable food containers and drinkware. Recycled paper is used and employees are encouraged to use double-sided printing. The printer fleet has been streamlined, and in most cases the printers’ default setting is set at double-sided printing; and employees are encouraged to reduce paper use.
The employee cafeterias at our manufacturing sites are an important focus of our waste management program. Instead of using disposable tableware, we provide durable, washable, and reusable tableware and food trays. We also raise employee awareness regarding food waste. Appropriately labeled bins (e.g. compostable, recyclables, landfill) at employee cafeterias help employees to optimize the sorting of food waste and reduce overall waste generation. Various non-food related sorting containers are also set up at numerous places (including conference rooms and offices) in both our manufacturing and non-manufacturing facilities.
Electronic Waste or E-Waste
Although at Diodes we do not directly manufacture any electrical or electronic end equipment, we share the global concerns over electronic products getting into landfills, contaminating groundwater, and creating environmental issues. We are committed to playing our part in the preservation and protection of our environment, and embrace the guidance in the Waste Electrical and Electronic Equipment Directive (WEEE Directive) aimed to reduce the amount of electrical and electronic equipment produced and to encourage reuse, recycle, and recovery. Our electronic waste is transferred to third parties certified to handle e-waste. In 2019, we recycled 100% of electronic waste generated at our manufacturing sites worldwide.
The types of electronic waste we generate include scrap products, spare parts, and other electronic materials from production, as well as decommissioned computers, monitors, laptops, printers, and other electronic equipment previously used by our employees; decommissioned servers, storage equipment, and networking equipment previously used in our data centers; and obsoleted testing equipment previously used in our laboratories for the engineering testing and verification of our products and other purposes. The electronic waste generated from these items is disposed of in accordance with the applicable laws and regulations, and the decommissioning of any electronic equipment used in our operations is handled with special care and by specialized companies or the original suppliers, as appropriate.