Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions [Abstract]

Related Party Transactions

Note 4. Related Party Transactions

In August 2011, our consolidated joint venture, Beijing JiYa Semiconductor Material Co., Ltd (JiYa), entered into a non-interest bearing note agreement in the amount of $1.6 million with one of its equity investment entities. Under the loan agreement, JiYa loaned $779,000 to its equity investment entity in August 2011 and the remaining amount of $868,000 will be loaned during the three months ending March 31, 2012 and has been included as part of accrued liabilities on the consolidated balance sheets. The term of the loan is two years and ten months and the equity investment entity will repay JiYa in three installments with the first installment of $412,000 due in December 2012, the second installment of $823,000 due in December 2013, and last installment of $412,000 due in May 2014. As of December 31, 2011, we included $412,000 in “Related party notes receivable – short term” and $1.2 million in “Related party notes receivable – long term” in the consolidated balance sheets.

In August 2011, our consolidated joint venture, Jin Mei loaned $786,000 to its equity investment entity for construction purposes. As of December 31, 2011, this balance was included in “Related party notes receivable – long term” in the consolidated balance sheets.

Our Related Party Transactions Policy seeks to prohibit all conflicts of interest in transactions between the Company and related parties, unless they have been approved by the Board of Directors of the Company. This policy applies to all employees and directors of the Company, our subsidiaries and our joint ventures. Our executive officers retain board seats on the Board of Directors of the companies in which we have invested in our China joint ventures. See Note 6 for further details.