Related Parties (Text Block)

12 Months Ended

Dec. 31, 2011

Related Parties [Abstract]

Related Party Transactions [Text Block]

NOTE       14 –RELATED PARTY TRANSACTIONS

       The Company conducts business with one related party company, Lite-On Semiconductor Corporation, and its subsidiaries and affiliates (“LSC”). LSC is the Company's largest stockholder, owning 18% of the Company's outstanding Common Stock as of December 31, 2011, and is a member of the Lite-On Group of companies. C.H. Chen, the Company's former President and Chief Executive Officer and currently the Vice Chairman of the Board of Directors, is also Vice Chairman of LSC and Lite-On Technology Corporation. Raymond Soong, the Chairman of the Board of Directors, is the Chairman of LSC, and is the Chairman of Lite-On Technology Corporation, a significant shareholder of LSC. Dr. Keh-Shew Lu, the Company's President and Chief Executive Officer and a member of its Board of Directors, is a member of the Board of Directors of Lite-On Technology Corporation. L.P. Hsu, a member of the Board of Directors since May 2007 serves as a consultant to Lite-On Technology Corporation. The Company considers its relationship with LSC, a member of the Lite-On Group of companies, to be mutually beneficial and the Company plans to continue its strategic alliance with LSC.

The Company also conducts business with one significant company, Keylink International (B.V.I.) Inc. and its subsidiaries and affiliates (“Keylink”).Keylink is the Company's 5% joint venture partner in the Company's Shanghai manufacturing facilities.

In addition, the Company conducts business with a related party company, Eris. The Company owned approximately 30% of Eris's outstanding Common Stock as of December 31, 2011. See Note 2 for additional regarding Eris.

The Audit Committee of the Company's 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.

Lite-On Semiconductor Corporation (LSC) –The Company sold products to LSC totaling 1%, 1% and 2% of its net sales for the years ended December 31, 2011, 2010 and 2009, respectively. Also for the years ended December 31, 2011, 2010 and 2009, 5%, 7% and 6%, respectively, of the Company's net sales were from semiconductor products purchased from LSC for subsequent sale, making LSC one of the Company's largest suppliers. The Company also rents warehouse space in Hong Kong with a lease term ending March 2011 from a member of the Lite-On Group. During 2010 the warehousing function in Hong Kong was moved to a separate facility managed by a third party and therefore, the Company does not plan to renew the lease. For the years ended December 31, 2011, 2010 and 2009, the Company paid this entity $0 million, $0 million and $1million, respectively.

Net sales to, and purchases from, LSC were as follows for years ended December 31:

	2011	2010	2009
Net sales	$ 1,980	$ 6,918	$ 8,967
Purchases	$ 37,879	$ 42,867	$ 32,868

Keylink International (B.V.I.) Inc. – The Company sells products to, and purchases inventory from, companies owned by Keylink. The Company sold products to companies owned by Keylink, totaling 2%, 3% and 3% of net sales for the years ended December 31, 2011, 2010 and 2009, respectively. Also for the years ended December 31, 2011, 2010 and 2009, 1%, 2% and 1%, respectively of the Company's net sales were from semiconductor products purchased from companies owned by Keylink. In addition, the Company's subsidiaries in China lease their manufacturing facilities in Shanghai from, and subcontract a portion of their manufacturing process (metal plating and environmental services) to, Keylink. The Company also pays a consulting fee to Keylink. The aggregate amounts for these services for the years ended December 31, 2011, 2010 and 2009 were $17 million, $14 million and $11 million, respectively.

Net sales to, and purchases from, companies owned by Keylink were as follows for years ended December 31:

	2011	2010	2009
Net sales	$ 11,965	$ 15,209	$ 11,373
Purchases	$ 11,168	$ 10,824	$ 6,252

Eris Technology Corporation – The Company subcontracts to Eris some of its wafers for assembly and test and also purchases finished goods not sourced from the Company's wafers. With respect to assembly and test fees and the finished goods purchases, the Company paid Eris approximately $16 million, $18 million and $13 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Accounts receivable from, and accounts payable to, LSC, Eris and Keylink were as follows as of December 31:

			2011		2010
Accounts receivable
	LSC	$	133	$	900
	Keylink		11,237		7,869
		$	11,370	$	8,769
Accounts payable
	LSC	$	5,106	$	7,171
	Eris		5,832		4,499
	Keylink		6,002		5,783
		$	16,940	$	17,453