Page 3

                             WASHINGTON, D.C. 20549


                                   FORM 8 - K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

       Date of Report (Date of earliest event reported): November 14, 2001

                              Data I/O Corporation
             (Exact name of registrant as specified in its charter)

                 (State of other jurisdiction of incorporation)

                    0-10394                          91-0864123
           (Commission File Number)     (IRS Employer Identification No.)

                 10525 Willows Road N.E., Redmond, WA  98073-9746
             (Address of principal executive offices)  (Zip Code)

       Registrant's telephone number, including area code: (425) 881-6444

                                 Not Applicable
          (Former name or former address, if changed since last report)

                                Page 1 of 4 Pages
                           Index to Exhibits on Page 3

Item 4. Changes in Registrant's  Certifying  Accountants

The Board of  Directors,  based on a  recommendation  from its audit  committee,
approved an action on November  14, 2001 for the  dismissal of Ernst & Young LLP
as its independent auditors. The audit committee and the board of directors have
approved another  independent  public  accounting  firm,  subject to such firm's
normal client acceptance  processes and procedures,  and the Company will file a
Form 8-K/A upon completion of this process.

The reports of Ernst & Young LLP on the Company's  financial  statements for the
past two fiscal  years did not  contain an adverse  opinion or a  disclaimer  of
opinion and were not qualified or modified as to  uncertainty,  audit scope,  or
accounting  principles,  except  that the  Independent  Auditors'  Report on the
consolidated  financial  statements of Data I/O  Corporation for the fiscal year
ended  December  28, 2000  contained  an  explanatory  paragraph  regarding  the
Company's change in its method of accounting for revenue recognition.

In connection with the audits of the Company's financial  statements for each of
the two fiscal years ended  December 28, 2000 and December 30, 1999,  and in the
subsequent interim period, there were no disagreements with Ernst & Young LLP on
any  matters  of  accounting   principles  or  practices,   financial  statement
disclosure,  or auditing  scope and  procedures  which,  if not  resolved to the
satisfaction  of Ernst & Young LLP would have  caused  Ernst & Young LLP to make
reference to the matter in their report. The Company has requested Ernst & Young
LLP to furnish it a letter addressed to the Commission stating whether it agrees
with the above  statements.  A copy of that letter,  dated  November 16, 2001 is
filed as Exhibit 16 to this Form 8-K.

Item 7.  Financial Statements and Exhibits

(c)      Exhibits

16.      Letter of Ernst & Young LLP to the Commission


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                              Data I/O Corporation

November 16, 2001             By /s/ Joel S. Hatlen

                              Its Vice President/CFO/Secretary/Treasurer

Data I/O Corporation

Form 8-K Report

Index to Exhibits

Number                     Exhibit

16       Letter of Ernst & Young LLP to the Commission, dated November 16, 2001


November 16, 2001

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549


We have read Item 4 of Form 8-K dated November 19, 2001, of Data I/O Corporation
and are in  agreement  with the  statements  contained  in the  second and third
paragraphs  on page 2 therein.  We have no basis to agree or disagree with other
statements of the registrant contained therein.

                                      /s/ Ernst & Young LLP