Related Party Transactions

12 Months Ended

Dec. 31, 2022

Note 15 – Related Party Transactions

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.

Warren Chen, a member of the Company's board of directors serves as a member of the Nuvoton board of directors. We purchase wafers from Nuvoton for use in our production process and consider our relationships Nuvoton to be mutually beneficial, and plan to continue our strategic alliance with Nuvoton. We have an agreement to purchase approximately $35.3 million of wafers from Nuvoton that ends in the fourth quarter of 2025.

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

The tables below set forth the revenues, expenses, accounts receivable and accounts payable with our related parties. The tables below set forth the net sales, purchases and expenses, for the twelve months ended December 31:


	2022		2021		2020
Keylink
Net sales	$	19,998	$	19,689	$	19,757
Purchases	$	1,949	$	2,015	$	1,538
Plating, rental and consulting expense	$	18,176	$	17,922	$	14,647
Nuvoton
Net sales	$	149	$	65	$	10
Purchases	$	15,068	$	9,764	$	8,418
JCP
Purchases	$	581	$	1,240	$	1,095
LSC, its subsidiaries and affiliates
Net sales	$	-	$	-	$	518
Purchases	$	-	$	-	$	12,062

The table below sets forth accounts receivable from and accounts payable to related parties at December 31:


	2022		2021
Keylink
Accounts receivable	$	40,510	$	39,530
Accounts payable	$	33,733	$	36,090
Nuvoton
Accounts receivable	$	30	$	-
Accounts payable	$	2,859	$	2,014
JCP
Accounts payable	$	133	$	235

Prior to November 30, 2020, LSC was our largest stockholder and a related party. We acquired LSC on November 30, 2020 so they were no longer a related party in 2022 or 2021. The Audit Committee of the Board reviews all related party transactions for potential conflict of interest situations on an ongoing basis, all in accordance with such procedures as the Audit Committee may adopt from time to time.