Related Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions

Note 15 — Related Party Transactions

A member of the Company’s board of directors is also a member of the board of directors of Seagate Technology (“Seagate”). The Company sells semiconductors used in storage product applications to Seagate for prices comparable to those charged to an unrelated third-party. Revenues from sales by the Company to Seagate were $768.2 million, $520.5 million and $355.5 million for the years ended December 31, 2012, 2011 and 2010, respectively. The Company had accounts receivable from Seagate of $94.0 million and $90.3 million as of December 31, 2012 and 2011, respectively.

The Company has an equity interest in a joint venture, Silicon Manufacturing Partners Pte Ltd. (“SMP”), with GLOBALFOUNDRIES, a manufacturing foundry for integrated circuits. SMP operates an integrated circuit manufacturing facility in Singapore. The Company owns a 51% equity interest in this joint venture and accounts for its ownership position under the equity method of accounting. The Company is effectively precluded from unilaterally taking any significant action in the management of SMP due to GLOBALFOUNDRIES’ significant participatory rights under the joint venture agreement. Because of GLOBALFOUNDRIES’ approval rights, the Company cannot make any significant decisions regarding SMP without GLOBALFOUNDRIES’ approval, despite the 51% equity interest. In addition, the General Manager, who is responsible for the day-to-day management of SMP, is appointed by GLOBALFOUNDRIES, and GLOBALFOUNDRIES provides day-to-day operational support to SMP.

The Company purchased $46.0 million, $49.0 million and $44.0 million of inventory from SMP during the years ended December 31, 2012, 2011 and 2010, respectively. As of December 31, 2012 and 2011, the amounts payable to SMP were $9.2 million and $5.0 million, respectively.