Diodes Inc. said Tuesday that it has agreed to purchase Redwood City-based APD Semiconductor for about $8 million.

“The APD acquisition is aligned with our strategy of strengthening Diodes’ technology leadership in the discrete semiconductor market and expanding our product capabilities across important segments of our end-markets,” said Keh-Shew Lu, chief executive of Westlake Village-based Diodes Inc.

Revenues for APD are forecasted to be around $2 million for 2006. The transaction is expected to be completed in early 2007.

Shares in Diodes Inc. were down 33 cents to $42.81 in early trading Tuesday.