Related Parties

3 Months Ended

Mar. 31, 2012

Related Parties [Abstract]

Related Parties [TextBlock]

NOTE K– Related Parties

The Company conducts business with a related party company, Lite-On Semiconductor Corporation and its subsidiaries and affiliates (collectively, “LSC”), that owned approximately 18% of the Company's outstanding Common Stock as of March 31, 2012. The Company also conducts business with one significant company, Keylink International (B.V.I.) Inc. and its subsidiaries and affiliates (collectively, “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 March 31, 2012.

The Audit Committee of theCompany's Board reviews all related party arrangements for potential conflict of interest situations on an ongoing basis, in accordance with such procedures as the Audit Committee may adopt from time to time.

Lite-On Semiconductor Corporation – During both the three months ended March 31, 2012 and 2011, the Company sold products to LSC totaling approximately0% and 1% of its net sales, respectively. Net sales have decreased in recent years due to fewer wafers being sold to LSC and more wafers being used for internal consumption. Also, for the three months ended March 31, 2012 and 2011,approximately 3%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.

       Net sales to, and purchases from, LSC are as follows (in thousands):

		Three Months Ended
		March 31,
		2012		2011
Net sales	$	47	$	447
Purchases	$	7,418	$	9,392

Keylink International (B.V.I.) Inc. – During the three months ended March 31, 2012 and 2011, the Company sold products to Keylink totaling approximately 3% and 1% of its net sales, respectively. Net sales increased in 2012compared to 2011 due to the renewed business activity that had ceased during most of 2011.Also, for both the three months ended March 31, 2012 and 2011, approximately 1%of the Company's net sales were from semiconductor products purchased from Keylink for subsequent sale. In addition, the Company's subsidiariesin China lease their manufacturing facilities from, and subcontract a portion of their manufacturing process (including, but not limited to, metal plating and environmental services) to Keylink. The Company also pays a consulting fee to Keylink. The aggregate amounts for these services for both the three months ended March 31, 2012 and 2011 wereapproximately $4 million.

Net sales to, and purchases from, Keylink are as follows (in thousands):

		Three Months Ended
		March 31,
		2012		2011
Net sales	$	4,472	$	1,186
Purchases	$	1,804	$	2,863

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 $3 million and $4 millionfor the three months ended March 31, 2012 and 2011, respectively.

Accounts receivable from, and accounts payable to, LSC, Eris and Keylink are as follows (in thousands):

		March 31,
		2012
Accounts receivable
LSC	$	49
Keylink		12,244
	$	12,293
Accounts payable
LSC	$	6,482
Keylink		5,191
Eris		5,277
	$	16,950