Related Parties (Text Block)

12 Months Ended

Dec. 31, 2012

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, 2012, 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.

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 approximately 1%of its net sales for the years ended December 31, 2012, 2011 and 2010, respectively. Also for the years ended December 31, 2012, 2011 and 2010, 3%, 5% and 7%, 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 rented warehouse space in Hong Kong, which the lease term endedMarch 2011 from a member of the Lite-On Group.

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

	2012	2011	2010
Net sales	$ 1,054	$ 1,980	$ 6,918
Purchases	$ 33,928	$ 37,879	$ 42,867

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 3%, 2% and 3% of net sales for the years ended December 31, 2012, 2011 and 2010, respectively. Also for the years ended December 31, 2012, 2011 and 2010, 1%, 1% and 2%, 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, 2012, 2011 and 2010 were $16 million, $17 million and $14 million, respectively.

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

	2012	2011	2010
Net sales	$ 19,336	$ 11,965	$ 15,209
Purchases	$ 7,826	$ 11,168	$ 10,824

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

			2012		2011
Accounts receivable
	LSC	$	204	$	133
	Keylink		10,457		11,237
		$	10,661	$	11,370
Accounts payable
	LSC	$	5,308	$	5,106
	Keylink		5,095		6,002
		$	10,403	$	11,108

Eris Technology Corporation– Prior to the Company obtaining a controlling financial interest in Eris on August 31, 2012, it treated Eris as a related party. The Company subcontracted to Eris some of its wafers for assembly and test and also purchased 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 $10 million, $16 million and $18 million for the years ended December 31, 2012, 2011 and 2010, respectively. See Note 17 for further information about business combinations.