Subsequent Events

12 Months Ended

Dec. 31, 2016

Subsequent Events [Abstract]

Subsequent Event

NOTE 20 – SUBSEQUENT EVENT (unaudited)

In light of the landlord’s decision not to renew the KFAB lease when the current term expires, on February 14 we announced we had begun activities to transfer the KFAB wafer manufacturing operations to other Diodes’ wafer fabrication plants and external foundries. We expect to cease operations at KFAB late in third quarter 2017 and to vacate the premises no later than November 15, 2017. Employees will be offered retention and standard severance packages. Total KFAB shutdown costs are expected to be approximately $10.0 million to $12.0 million, on a pretax basis, which will be expensed and paid throughout 2017. Expenses to be incurred include cash costs of approximately $4.0 million for employee retention and severance, $2.0 million for contract termination costs, $2.0 million for equipment and building decommissioning costs as well as non-cash costs of $2.0 million for equipment impairment and $1.0 million of inventory write-off.