Related Parties

6 Months Ended

Jun. 30, 2022

NOTE 13 – Related Parties

We conduct business with the following related parties: Keylink International (B.V.I.) Inc. and its subsidiaries and affiliates (“Keylink”), Nuvoton Technology Corporation (“Nuvoton”) and Jiyuan Crystal Photoelectric Frequency Technology Ltd. (“JCP”).

Keylink is a 5% joint venture partner in our Shanghai assembly and test facilities. We sell products to, and purchase inventory from, companies owned by Keylink. In addition, our subsidiaries in China lease their manufacturing facilities in Shanghai from, and subcontract a portion of our manufacturing process (metal plating and environmental services) to Keylink. We also pay a consulting fee to Keylink.

Our Chairman and CEO serves as a member of the Nuvoton board of directors and we purchase wafers from Nuvoton for use in our production process and we have an agreement to purchase approximately $41.2 million of wafers from Nuvoton that ends in the fourth quarter of 2025. We consider our relationships Nuvoton to be mutually beneficial and plan to continue our strategic alliance with Nuvoton.

JCP is a frequency control product manufacturing company from which we purchase material and in which we have made an equity investment. We account for this investment using the equity method of accounting.

The table below set forth the net sales, purchases and expenses with our related parties for the three months and six months ended June 30:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Keylink:
Net sales	$	4,149	$	4,333	$	9,915	$	9,899
Purchases	$	506	$	501	$	928	$	980
Plating, rental and consulting expense	$	4,418	$	4,341	$	8,965	$	8,656
Nuvoton:
Net sales	$	8	$	-	$	43	$	-
Purchases	$	4,094	$	2,288	$	7,160	$	3,695
JCP:
Purchases	$	157	$	328	$	370	$	687

The table below sets forth accounts receivable from, and accounts payable to, related parties:


	June 30, 2022		December 31, 2021
Keylink:
Accounts receivable	$	47,373	$	39,530
Accounts payable	$	45,132	$	36,090
Nuvoton:
Accounts receivable	$	9	$	-
Accounts payable	$	2,328	$	2,014
JCP:
Accounts payable	$	152	$	235