0001193125-20-167679 | 20-F | XBRL Viewer | Silicon Motion Technology Corp

General and administrative

$ 457,253

$ 530,348

^[1]

$ 523,404

^[1]

COST OF SALES

235,081

269,541

272,210

GROSS PROFIT

222,172

260,807

251,194

OPERATING EXPENSES

Research and development

110,305

102,028

102,053

Sales and marketing

25,108

29,279

25,868

17,878

17,633

16,933

Impairment of goodwill and intangible assets

15,970

4,069

10,337

Amortization of intangible assets

766

2,964

2,534

Gain from disposal of noncurrent assets held for sale

(1,880)

Total operating expenses

170,027

155,973

155,845

OPERATING INCOME

52,145

104,834

95,349

NON-OPERATING INCOME (EXPENSES)

Gain from disposal of subsidiary

12,409

Gain from disposal of long-term investments

473

Gain from disposal of short-term investments

134

103

Interest income

6,751

6,301

4,268

Foreign exchange gain (loss), net

148

(615)

(157)

Impairment of long-term investments

(120)

Interest expense

(3)

(378)

(423)

Loss on equity-method investment

(473)

Other income (loss), net

103

(19)

Total non-operating income

19,929

5,027

3,652

INCOME BEFORE INCOME TAX

72,074

109,861

99,001

INCOME TAX EXPENSE

7,676

11,791

24,046

NET INCOME

$ 64,398

$ 98,070

$ 74,955

EARNINGS PER ORDINARY SHARE:

Basic

$ 0.46

$ 0.68

$ 0.53

Diluted

$ 0.46

$ 0.68

$ 0.52

WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING

Basic (Thousands)

140,708

144,123

142,738

Diluted (Thousands)

141,183

144,512

143,606

EARNINGS PER ADS (one ADS equals four ordinary shares):

Basic

$ 1.83

$ 2.72

$ 2.10

Diluted

$ 1.82

$ 2.71

$ 2.09

WEIGHTED AVERAGE ADS OUTSTANDING

Basic (Thousands)

35,177

36,031

35,684

Diluted (Thousands)

35,296

36,128

35,902

[1]	The figure represents the revenue by geographic area based on the bill-to location. Commencing in 2019, revenue derived from Japan was reclassified to others. The above breakdown for 2017 and 2018 has been reclassified on the same basis.

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 64,398	$ 98,070	$ 74,955
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX EFFECT OF NIL
Change in net foreign currency translation adjustments	(1,265)	(2,148)	3,390
Change in deferred pension gain (loss)	(15)		285
OTHER COMPREHENSIVE INCOME (LOSS)	(1,280)	(2,148)	3,675
TOTAL COMPREHENSIVE INCOME	$ 63,118	$ 95,922	$ 78,630

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Statements Of Changes In Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Ordinary Shares	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings (accumulated deficit)	Treasury Stock
Beginning Balance at Dec. 31, 2016	$ 442,763	$ 1,413	$ 226,658	$ (1,032)	$ 215,724
Beginning Balance, shares at Dec. 31, 2016		141,311
Net income	74,955				74,955
Other comprehensive income (loss)	3,675			3,675
Stock-based compensation expenses	15,494		15,494
Issuance of ordinary shares upon exercise of restricted stock units, shares		1,851
Issuance of ordinary shares upon exercise of restricted stock units	353	$ 18	335
Dividends declared	(43,189)				(43,189)
Ending Balance at Dec. 31, 2017	494,051	$ 1,431	242,487	2,643	247,490
Ending Balance, shares at Dec. 31, 2017		143,162
Net income	98,070				98,070
Other comprehensive income (loss)	(2,148)			(2,148)
Stock-based compensation expenses	20,779		20,779
Issuance of ordinary shares upon exercise of restricted stock units, shares		1,517
Issuance of ordinary shares upon exercise of restricted stock units	(20)	$ 16	(36)
Share repurchase	(34,755)					$ (34,755)
Dividends declared	(43,700)				(43,700)
Ending Balance at Dec. 31, 2018	$ 532,277	$ 1,447	263,230	495	301,860	(34,755)
Ending Balance, shares at Dec. 31, 2018	144,679	144,679
Net income	$ 64,398				64,398
Other comprehensive income (loss)	(1,280)			(1,280)
Stock-based compensation expenses	14,591		14,591
Issuance of ordinary shares upon exercise of restricted stock units, shares		1,505
Issuance of ordinary shares upon exercise of restricted stock units	(22)	$ 15	(37)
Share repurchase	(25,103)					(25,103)
Treasury stock retired (Shares)		(7,074)
Treasury stock retired		$ (71)	(12,574)		(47,213)	59,858
Dividends declared	(48,077)				(48,077)
Ending Balance at Dec. 31, 2019	$ 536,784	$ 1,391	$ 265,210	$ (785)	$ 270,968	$ 0
Ending Balance, shares at Dec. 31, 2019	139,110	139,110

Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended												12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]
Dividends declared, per share	$ 0.0875	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.050	$ 0.050	$ 0.050	$ 0.35	$ 0.30	$ 0.30

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 64,398	$ 98,070	$ 74,955
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,447	11,832	10,599
Amortization of intangible assets	766	2,964	2,534
Gain from disposal of short-term investments	(48)	(134)	(103)
Gain from disposal of subsidiary	(12,409)
Gain from disposal of long-term investments	(473)
Loss on equity-method investment		473
Impairment of long-term investments			120
Stock-based compensation	14,591	20,779	15,494
Loss on disposal of property and equipment	22	66	4
Impairment of goodwill and intangible assets	15,970	4,069	10,337
Gain from disposal of noncurrent assets held for sale			(1,880)
Deferred income taxes	1,118	(1,664)	581
Changes in operating assets and liabilities:
Short-term investments	1,627	3,240	(3,208)
Notes and accounts receivable	(18,755)	(12,628)	(5,156)
Inventories	(10,155)	12,668	(22,299)
Prepaid expenses and other current assets	(1,932)	2,689	1,585
Other assets	(397)	142	(138)
Notes and accounts payable	4,426	(28,766)	24,248
Refund liabilities	167	2,093
Accrued expenses and other current liabilities	10,607	(4,679)	458
Income tax payable	(1,698)	(7,329)	(8,779)
Other liabilities	(2,577)	4,357	4,529
Net cash provided by operating activities	77,695	108,242	103,881
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of long-term investment		(4,715)
Proceeds from sale of subsidiary	43,968
Proceeds from sale of long-term investment	1,715
Business acquisition-net of cash, cash equivalents, and restricted cash acquired			(2,865)
Purchase of property and equipment	(11,015)	(74,853)	(11,683)
Net cash provided by (used in) investing activities	34,668	(79,568)	(14,548)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of ordinary shares upon exercise of employee stock options	0	0	380
Proceeds from bank loan			25,000
Repayments of bank loan		(25,000)	(25,000)
Dividends paid	(44,029)	(43,281)	(32,120)
Share repurchase	(26,231)	(33,539)
Net cash used in financing activities	(70,260)	(101,820)	(31,740)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	42,103	(73,146)	57,593
EFFECT OF EXCHANGE RATE CHANGES	(977)	(1,250)	2,753
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR	307,127	381,523	321,177
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF YEAR	348,253	307,127	381,523
SUPPLEMENTAL INFORMATION
Interest paid		376	367
Income taxes paid	5,612	$ 13,792	30,910
Acquisition of Bigtera
Fair value of assets acquired, net of cash, cash equivalents, and restricted cash acquired			4,586
Other current liabilities			(1,244)
Other long-term liabilities			(477)
Cash paid for business acquisition, net of cash, cash equivalents, and restricted cash acquired			$ 2,865
Disposal of FCI
Total consideration	54,129
Other current assets	(245)
Cash and restricted cash disposed	(9,916)
Proceeds from sale of subsidiary	$ 43,968

Organization and Operations	12 Months Ended
Organization and Operations	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Operations	1. ORGANIZATION AND OPERATIONS Silicon Motion Technology Corporation (“SMTC”, collectively with its subsidiaries the “Company”) is the global leader in selling NAND flash controllers for solid state storage devices and the merchant leader in supplying SSD controllers. The Company has the broadest portfolio of controller technologies and its controllers are widely used in embedded storage products such as SSDs and eMMC and UFS devices, which are found in smartphones, PCs and commercial and industrial applications. It has shipped over six billion NAND controllers in the last ten years, more than any other company in the world. The Company also supplies customized high-performance hyperscale data center and industrial SSD solutions. The Company’s customers include most of the NAND flash vendors, storage device module makers and leading OEMs. For further information on Silicon Motion, visit us at www.siliconmotion.com .

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Significant Accounting Policies [Text Block]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The consolidated financial statements have been prepared in accordance with U.S. GAAP. The consolidated financial statements include the accounts of SMTC and its wholly-owned subsidiaries.

The Company owns

100

% of the outstanding shares in all of its subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. The actual results could differ from those estimates.

Disposal of Subsidiary

The Company accounts for the disposal of a subsidiary when it ceases to control the subsidiary’s assets and liabilities. A gain or loss is recognized and measured as the difference between the fair value of consideration received or to be received and the value of assets, liabilities and equity components de-recognized, related to that subsidiary when deconsolidated.

On May 31, 2019, the Company completed the sale of FCI to Dialog Semiconductor for a total consideration of approximately

US$

54 million.

The Company derecognized the assets and liabilities and recorded a gain

of US$12,409

thousand, net of transaction fees on the disposal, which is the difference between the consideration of US$54 million and

the

US$39,367

thousand carrying value of the subsidiary.

US$5,400

thousand of the consideration was withheld and deposited into an escrow account and, as the escrowed amount is expected to be released within 12 months, it was classified as restricted assets-current on the consolidated balance sheet as of December 31, 2019.

Concentration of Credit Risk and Significant Customers

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist principally of cash equivalents, short term investments and accounts receivable. Cash, cash equivalents and short-term investments balances are maintained with high quality financial institutions, the composition and

maturities of which are regularly monitored by management. The Company believes that the concentration of credit risk in its trade receivables, is substantially mitigated by the Company’s credit evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial conditions and limits the amount of credit extended based upon payment history and the customer’s current credit worthiness. The Company regularly reviews the allowance for bad debt and doubtful accounts by considering factors such as historical experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer’s ability to pay.

Historically, a relatively small number of customers have accounted for a significant portion of our net revenue. Sales to two customers in 2017

2018

and 2019,

accounted for 10% or more of

our

net

evenue

, representing

39%

34%

and 31%

our

net

revenue

in 2017

2018

and 2019

, respectively. In 2019, the significant customers were Intel and Micron and in 2017 and 2018,

were

Hynix

and Intel. The Company’s top ten customers in 2017

2018

and 2019

accounted for approximately

and 74%

of net sales, respectively.

Fair Value of Financial Instruments

The carrying amount of the Company’s financial instruments, including cash and cash equivalents, notes and accounts receivable and notes and accounts payables approximates fair value due to the short-term maturity of the instruments. Fair values of short-term investments represent quoted market prices, if available. If no quoted market prices are available, fair values are estimated based on discounted cash flow, or other valuation techniques. Long-term investments in privately-held companies with no readily determinable market value are recorded using the cost method, since the cost of obtaining verifiable fair value is unreasonably high. Upon adoption of Accounting Standard Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) starting January 1, 2018, these investments are measured at cost less impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Any resulting change in carrying amount would be reflected in net income. The Company’s long-term liabilities approximate their fair values as they contain interest rates that vary according to market interest rates.

Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that assets or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the Company. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

Level 1 — Use unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 — Use observable inputs other than Level 1 prices such as quoted prices for identical or similar instruments in markets that are not active, quoted prices for similar instruments in active markets, and model-based valuation in which all significant inputs are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Use inputs that are generally unobservable and reflect the use of significant management judgments and estimates.

See Note 21, “Fair Value Measurement”, for the related disclosure.

Cash Equivalents

The Company considers all highly liquid instruments acquired with a remaining maturity of three months or less when purchased to be cash equivalents. In addition, time deposits with maturities ranging from more than three months to one year are considered qualified as cash equivalents as the nature of the time deposits are similar to cash such that without advance notice to the bank, they can be readily converted into known amounts of cash with the principal of the time deposits protected and not subject to penalty in the event of an early withdrawal. Also, the risk of changes in value because of changes in interest rates is insignificant due to the fact that the Company can still earn interest based on a rate close to the

on-going

published interest rate applicable for the actual period of the time deposits in the event of an early withdrawal. Cash and cash equivalents are stated at cost, which approximates their fair value.

Short-term Investments

The Company’s short-term investments primarily includes short-term income yielding investments with original maturities greater than three months from the purchase date and remaining maturities less than one year. These short-term investments consist mostly of bond funds and principal protected notes that are bought and held principally for the purpose of selling them in the near term and are classified as trading securities as well as senior notes classified as

held-to-maturity

investments with maturities less than one year. Trading securities are reported at fair value with the subsequent changes in fair value recorded in earnings as unrealized gains and losses. Senior notes are measured at amortized cost using the effective interest method less any impairment.

Allowance for Doubtful Receivables

An allowance for doubtful receivables is provided based on a review of the collectability of accounts receivables. The Company determines the amount of allowance for doubtful receivables by examining the historical collection experience and current trends in the credit quality of its customers as well as its internal credit policies.

Inventories

Inventories are stated at the lower of cost or net realizable value for raw materials, work in process and finished goods

Inventories are recorded at standard cost and adjusted to the approximate weighted-average cost at the balance sheet date. The Company assesses its net realizable value of the inventory for estimated obsolescence or unmarketable inventory based upon management’s assumptions about future demand and market conditions. In estimating reserves for obsolescence, the Company primarily evaluates estimates based on the timing of the introduction of new products and the quantities remaining of old products and provides reserves for inventory on hand in excess of the estimated demand. Estimated losses on slow-moving items are recognized and included in the allowance for losses.

Long-term Investments

Investee companies over which the Company had the ability to exercise significant influence but did not have a controlling interest and was the primary beneficiary were accounted for using the equity method. Significant influence was generally considered to exist when the Company had an ownership interest in the voting shares of the investee between 20% and 50%, and other factors, such as representation in the investee’s board of directors, voting rights and the impact of commercial arrangements, were considered in determining whether the equity method of accounting was appropriate. Under this method of accounting, the Company recorded its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. The Company evaluated its equity method investments for impairment whenever events or changes in circumstances indicated that the carrying amounts of such investments might not be recoverable.

Prior to adopting ASU 2016-01 on January 1, 2018, the Company had long-term investments in companies that it does not exercise significant influence and accounted for these investments under the cost method. Management regularly evaluates financial information related to these investments to determine whether an other than temporary decline in their value exists. Factors indicative of an other than temporary decline include recurring operating losses, credit defaults and subsequent rounds of financings at an amount below the cost basis of the investment. Management periodically weighs all quantitative and qualitative factors in determining if any impairment loss exists. When a decline in value is deemed to be other-than-temporary, the Company recognizes an impairment loss in other income and expense. After adopting ASU 2016-01 on January 1, 2018, the Company elected to record equity investments without readily determinable fair values and not accounted for by the equity method at cost less impairment, adjusted for subsequent observable price changes whether there are observable price changes in orderly transactions for the identical or similar investment of the same issuer.

Noncurrent Assets Held for Sale

Noncurrent assets are presented separately as held for sale when the Company is committed to selling the asset, an active plan of sale has commenced, and the sale is expected to be completed within 12 months or under a specified market condition that meets an exception to one-year requirement. Assets held for sale are measured at the lower of their carrying amount and fair value less cost to sell. Assets held for sale are no longer amortized or depreciated.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Significant additions, renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred.

Depreciation is computed using the straight-line method over estimated useful lives that range as follows: buildings — 25 to 50 years; machinery and equipment — 3 to 6 years; furniture and fixtures — 3 to 8 years; software — 1 to 5 years; leasehold and buildings improvement — the shorter of the estimated useful life or lease term, which is generally 2 to 6 years. Land is not depreciated. Depreciation expense

on property

and

equipment were

approximately US$10,599 thousand, US$11,832 thousand and US$12,447 thousand

for the years ended December 31, 2017, 2018 and 2019

, respectively.

Upon the sale or other disposal of property and equipment, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss is credited or charged to operating income.

Lease

On January 1, 2019, the Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02) using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows the Company to carry forward the historical lease classification. The Company elected to apply the short-term lease measurement and recognition exemption in which right-of-use assets and lease liabilities are not recognized for short-term leases. Results and disclosure requirements for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting under Topic 840.

Upon adoption, the Company recognized leased assets and corresponding liabilities in operating lease assets of US$7,202 thousand, which includes US$238 thousand of previously recognized prepaid use rights, as well as corresponding accrued expenses and other current liabilities of US$1,428 thousand and other long-term liabilities of US$5,536 thousand.

The lease assets include adjustments for prepayments and accrued lease payments. The adoption did not impact the beginning retained earnings, or the prior year consolidated statements of income and statements of cash flows. Under Topic 842, the Company determines if an arrangement is a lease at inception. The lease assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of the leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments. The operating lease asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. When determining the probability of exercising such options, the Company considers contract-based, asset-based, entity-based, and market-based factors. The lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred on the consolidated statements of income. The lease agreements generally do not contain any residual value guarantees or restrictive covenants. The Company recognized leased assets in operating lease assets

of US$8,603 thousand and corresponding accrued expenses and other current liabilities of US$3,046 thousand, and other long-term liabilities of US$5,621 thousand. The weight average remaining lease term was 3.5 years, and the weight average discount rate was 3.78% as of December 31, 2019.

Government Grants

Grants received by the Company from the Korean government to assist with specific research and development activities were deducted from those research and development costs incurred, in the period in which the related expenses are incurred, to the extent that they are

non-refundable.

Government grants that were used for the acquisition of fixed assets were deducted from the acquisition costs of the acquired assets and amortized over the useful lives of the related assets. The Company recognized refundable government grants as long-term payable and current portion of long-term payable on its consolidated balance sheet.

Goodwill and Intangible Assets

Goodwill is the excess of the purchase price paid over the fair value of the net tangible and intangible assets acquired in a business combination. Intangible assets, which consist primarily of development technology, are amortized over their estimated useful lives, of 3.5 to 5.5 years.

Impairment of Goodwill and Long-Lived Assets

The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable. The determination of recoverability is based on an estimate of undiscounted cash flows expected to result from the use of an asset and its eventual disposition. The estimate of cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. Estimates of undiscounted cash flows may differ from actual cash flows due to, among other things, technological changes, economic conditions, changes to the business model or changes in operating performance. If the sum of the undiscounted cash flows is less than the carrying value, an impairment loss is recognized, measured as the amount by which the carrying value exceeds the fair value of the asset. Fair value is determined by reference to quoted market prices, if available, or discounted cash flows, as appropriate. See Note 10, “Goodwill and Acquired Intangible Assets,” regarding impairment testing in fiscal year 2017, 2018 and 2019.

The Company monitors the recoverability of goodwill recorded in connection with acquisitions, by reporting unit, annually, or sooner if events or changes in circumstances indicate that the carrying amount may

not be recoverable. The Company conducts its annual impairment test of goodwill on November 30. Reporting units may be operating segments as a whole or an operation one level below an operating segment, referred to as a component. Prior to fiscal 2017, goodwill impairment is tested using a

two-step

approach. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired and the second step is not required. If the fair value of the reporting unit is less than its carrying amount, the second step of the impairment test measures the amount of the impairment loss, if any, by comparing the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination, whereby the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit, with the excess purchases price over the amounts assigned to assets and liabilities.

In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”)

2017-04,

which removes step two from the goodwill impairment test. The Company elected to early adopt this ASU in the fourth quarter of 2017, in conjunction with the Company’s annual review for impairment.

Estimating fair value is performed by utilizing various valuation approaches, such as income approach or market approach. The total of all reporting unit fair values is also compared to the Company’s market capitalization plus control premium for reasonableness. See Note 10, “Goodwill and Acquired Intangible Assets,” regarding impairment testing.

Other Assets

Other assets primarily consist of industrial property right and deposit for office leases.

Restricted Assets

Restricted assets consist of restricted cash. Restricted cash represents cash set aside as collateral for obtaining capacity, escrow relating to the sale of a subsidiary and borrowings as well as cash received from government grants with restriction on its usage.

Bank loans

Revolver credit from financial institutions are stated at the amount of unpaid principal.

Other long-term liabilities

Other long-term liabilities primarily consist of noncurrent lease liabilities and unrecognized tax benefit.

Pension Costs

Revenue Recognition

Through the fiscal year ended December 31, 2017, revenue from product sales was generally recognized upon shipment to the customer provided that the Company had received a signed purchase order, the price was fixed or determinable, transfer of title had occurred in accordance with the shipping terms specified in the

arrangement with the customer, collectability from the customer was considered reasonably assured, product returns were reasonably estimable and there were no remaining significant obligations or customer acceptance requirements. Revenue on development service orders was generally recognized upon completion and customer acceptance of contractually agreed milestones.

As a result of the adoption of the new revenue standard (ASC 606) on January 1, 2018, using the modified retrospective method with the cumulative effect of initially applying it recognized at the date of initial application, the Company revised its revenue recognition policy. The Company now recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Under the new revenue recognition standard, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied.

The Company enters into contracts that may include products that are capable of being distinct and accounted for as separate performance obligations. To date, the majority of the revenue has been generated by sales associated with products of storage and mobile communication, where a single performance obligation is identified in general. Revenue from services has been insignificant. Performance obligations associated with product sales transactions are generally satisfied when control passes to customers upon shipment or the written acceptance of the customers. Accordingly, product revenue is recognized at a point in time when control of the asset is transferred to the customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a product to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods. Some of the Company’s sales are made to distributors. Control passes to the distributor upon shipment, and terms and payment by the Company’s distributors is not contingent on resale of the product.

The Company grants certain distributors limited rights of return and price protection rights on unsold products. The return rights are generally limited to five percent of the monetary value of products purchased within the preceding six months, provided that the distributor places a corresponding restocking order of equal or greater value. An allowance for sales returns for distributors and all customers is recorded at the time of sale based on historical returns information available, management’s judgment and any known factors at the time the financial statements are prepared that would significantly affect the allowance. Price protection rights are based on the inventory products the distributors have on hand at the date the price protection is offered. The actual price adjustments to distributors incurred by the Company are minimal.

The Company provides the warranty for manufacturing defects of its products. Warranty returns have been infrequent and relate to defective or

off-specification

parts. The Company estimates a reserve for warranty based on historical experience and records this amount to cost of sales. For the years ended December 31, 2017, 2018 and 2019, the Company did not experience significant costs associated with warranty returns.

Research and Development

Research and development costs consist of expenditures incurred during the course of planned research and investigation aimed at the discovery of new knowledge that will be useful in developing new products or at significantly enhancing existing products as well as expenditures incurred for the design and testing of product alternatives. All expenditures related to research and development activities of the Company are charged to operating expenses when incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved.

Income Taxes

The provision for income tax represents income tax paid and payable for the current year plus changes in the deferred income tax assets and liabilities during the years. Deferred income tax assets are recognized for net operating loss carryforwards, research and development credits, and temporary differences. The Company believes that uncertainty exists regarding the realizability of certain deferred income tax assets and, accordingly, has established a valuation allowance for those deferred income tax assets to the extent the realizability is not deemed to be more likely than not. Deferred income tax assets and liabilities are measured using enacted tax rates.

The Company utilizes a two step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained in a dispute with taxing authorities, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits in income tax expense.

Foreign Currency Transactions

Foreign currency transactions are recorded at the rates of exchange in effect when the transaction occurs. Gains or losses, resulting from the application of different foreign exchange rates when cash in foreign currency is converted into the entities’ functional currency, or when foreign currency receivables and payables are settled, are credited or charged to income in the period of conversion or settlement. At the balance sheet date, assets and liabilities denominated in foreign currencies are remeasured based on prevailing exchange rates and any resulting gains or losses are credited or charged to income.

Translation of Foreign Currency Financial Statements

The reporting currency of the Company is the U.S. dollars. The functional currency of some of the Company’s subsidiaries is the local currency of the respective entity. Accordingly, the financial statements of the foreign subsidiaries were translated into U.S. dollars at the following exchange rates: assets and liabilities — current rate on the balance sheet date; shareholders’ equity — historical rates; income and expenses — average rate during the period. The resulting translation adjustment is recorded as a separate component of comprehensive income.

Comprehensive Income (Loss)

Comprehensive income and loss represents net income (loss) plus the results of certain changes in shareholders’ equity during a period from

non-owner

sources. The following table presents the components of accumulated other comprehensive income (loss) as of December 31, 2017

2018

and 2019


	Year Ended December 31, 201 7									Year Ended December 31, 201 8									Year Ended December 31, 201 9
	US$									US$									US$
	Foreign currency items			Defined benefit pension plans			Accumulated other comprehensive income (loss)			Foreign currency items			Defined benefit pension plans			Accumulated other comprehensive income (loss)			Foreign currency items			Defined benefit pension plans			Accumulated other comprehensive income (loss)
Beginning balance		(69	)		(963	)		(1,032	)		3,321			(678	)		2,643			1,173			(678	)		495
Current-period change		3,390			285			3,675			(2,148	)		—			(2,148	)		(1,265	)		(15	)		(1,280	)
Ending balance		3,321			(678	)		2,643			1,173			(678	)		495			(92	)		(693	)		(785	)

Legal Contingencies

The Company is regularly involved in various claims and legal proceedings. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. Because of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to the pending claims and litigation and revises these estimates as appropriate. Such revisions in the estimates of the potential liabilities could have a material impact on the results of operations and financial position.

Earnings Per Share

Basic earnings per share are computed by dividing net earnings attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share are computed by dividing net income attributable to ordinary shareholders by the weighted-average number of ordinary shares and potentially dilutive shares of ordinary shares outstanding during the period. Dilutive shares outstanding include unvested RSUs. Dilutive securities are excluded from the computation of the diluted income per share in periods when their effect is anti-dilutive. The effect of dilutive securities

were 868 thousand shares (218 thousand ADSs

389 thousand shares (97

thousand ADSs) and 475 thousand shares (119 thousand ADSs)

for the years ended December 31, 2017

2018

and 2019

, respectively.

Stock-Based Compensation

The Company accounts for stock-based compensation in accordance with ASC 718 Compensation — Stock Compensation. The value of our restricted stock units is based on the fair value of our shares on the date of grant and expensed over the vesting period.

Prior to the initial declaration of a quarterly cash dividend on January 22, 2013, the fair value of restricted stock units (“RSUs”) was measured based on the grant date share price, as the Company did not historically pay cash dividends on our common stock. For awards granted on or subsequent to January 22, 2013, the fair value of RSUs was measured based on the grant date share price, less the present value of expected dividends during the vesting period, discounted at a risk-free interest rate.

Treasury Stock

Treasury stock is stated at cost and shown as a reduction to shareholders’ equity.

The Company retires ordinary shares repurchased under a share repurchase plan. Accordingly, upon retirement the excess of the purchase price over par value is allocated between additional paid-in capital and retained earnings based on the average issuance price of the shares repurchased. A repurchase of ADSs is recorded as treasury stock until the Company completes the withdrawal of the underlying ordinary shares from the ADS program.

Recent Accounting Pronouncements

In June 2016, the FASB issued an accounting update to amend the guidance on the impairment of financial instruments that are not measured at fair value through profit and loss. The amendment introduces a current expected credit loss (CECL) model based on expected losses rather than incurred losses to estimate credit losses on financial instruments measured at amortized cost and requires a broader range of reasonable and supportable

information to estimate expected credit loss. In addition, under the amendment, an entity recognizes an allowance for expected credit losses on financial instruments measured at amortized cost and available-for-sale debt securities rather than the current methodology of delaying recognition of credit losses until it is probable a loss has been incurred. In November 2018, the FASB issued an accounting update to clarify that receivables arising from operating leases are not within the scope of new credit losses guidance. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The amendment is effective for fiscal years beginning after December 15, 2019, and earlier adoption is permitted as of the fiscal years beginning after December 15, 2018. The adoption of the amendments did not have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures.

In August 2018, the FASB issued an accounting update to amend fair value measurement disclosure requirements to eliminate, add and modify certain disclosures to improve the effectiveness of such disclosure. The amendments removed (1) the disclosure requirements for transfers between Levels 1 and 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels of the fair value hierarchy; and (3) the valuation processes for Level 3 fair value measurements. Additionally, the amendments modified the disclosure requirements for investments in certain entities that calculate net asset value and measurement uncertainty. Finally, the amendments added disclosure requirements for the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. This amendment is effective for annual periods beginning after December 15, 2019. Early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures.

In August 2018, the FASB issued an accounting update to modify the disclosure requirements by removing, modifying and clarifying disclosures related to defined benefit plans. This amendment modified the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements have been removed while the disclosure requirements of (1) the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period, have been added. The amendment also clarified the disclosure requirements with respect to the projected benefit obligation and the accumulated benefit obligation. The amendment is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The amendments should be applied on a retrospective basis to all periods presented. The adoption of this amendment is not expected to have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures.

In December 2019, the FASB issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for the

ompany in the first quarter of 2021 on a prospective basis, and early adoption is permitted. The adoption of this amendment is not expected to have a material impact on the Company’s financial position, results of operations, cash flow and financial statement disclosures.

Cash, Cash Equivalents, and Restricted Cash

12 Months Ended

Dec. 31, 2019

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents, and Restricted Cash

3. CASH, CASH EQUIVALENTS, AND RESTRICTED CASH


	December 31
	2018		2019
	US$		US$
Cash and deposits in bank		54,918		61,184
Time deposits		220,047		229,419
Bonds acquired under repurchase agreements		10,024		32,563

Total cash and cash equivalents		284,989		323,166
Restricted cash		22,138		25,087

		307,127		348,253

Short-Term Investments

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Short-Term Investments

4. SHORT-TERM INVESTMENTS


	December 31
	2018		2019
	US$		US$
Trading securities		3,609		2,010

The Company classified certain short-term investments as trading securities. Realized gains on sales of these trading securities were US$103 thousand, US$134 thousand and US$48 thousand for the years ended December 31, 2017, 2018 and 2019, respectively The amount of unrealized losses related to trading securities at year end was nil for the years ended December 31, 2017, 2018 and 2019, respectively.

Notes and Accounts Receivable

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Notes and Accounts Receivable

5. NOTES AND ACCOUNTS RECEIVABLE


	December 31
	2018			2019
	US$			US$
Trade accounts receivable		92,408			110,351
Allowance for doubtful accounts		(645	)		(1,617	)

		91,763			108,734

The changes in the allowances are summarized as follows:


	Year Ended December 31
	2017			2018		2019
	US$			US$		US$
Allowances for doubtful accounts
Balance, beginning of year		723			598		645
Additions (reversals) charged to expense, net		(125	)		47		1,164
Write-offs		—			—		(192	)

Balance, end of year		598			645		1,617


	Year Ended December 31
	2017
	US$
Allowances for sales returns and discounts *
Balance, beginning of year		1,624
Additions charged to expense, net		3,093
Actual sales return and discount		(3,285	)

Balance, end of year		1,432

*	As of January 1, 2018, the Company has adopted the new revenue recognition standard (ASC 606). Allowance for sales returns and discounts for the year ended December 31, 2018 has been adjusted to reflect these changes in accounting policies, see Note 2 summary of significant accounting policies.

Inventories

12 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Inventories

6. INVENTORIES

The components of inventories are as

follows


	December 31
	2018		2019
	US$		US$
Finished goods		26,059		26,305
Work in process		30,830		37,342
Raw materials		24,629		24,792

		81,518		88,439

The Company wrote down US$698 thousand, US$2,095 thousand and US$9,085 thousand in 2017

2018

and

2019,

respectively, for estimated obsolete or unmarketable inventory.

Long-Term Investments

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Long-Term Investments

7. LONG-TERM INVESTMENTS

As of December 31, 2018 and 2019, the Company held equity investments in several privately-held companies with the carrying value as follows:


	Percentage of Ownership						D ecember 3 1
	2018			2019			2018		2019
							US$		US$
Cost less impairment method:
Cashido Corp. (Cashido)		1.8	%		0.6	%		—		—
Vastview Technology, Corp. (Vastview)		2.9	%		2.9	%		—		—
Deep Vision, Inc (Deep Vision)		14.8	%		14.8	%		3,000		3,000
Equity method:
ProGrade Digital, Inc. (ProGrade)		49.0	%		—			1,242		—

								4,242		3,000

In July 2001, the Company invested in the common stock of Cashido. At the time of investment, Cashido manufactured flash memory storage devices. Cashido currently focuses on the manufacture of computer accessories and ozone

based sterilization devices. In 2017, the Company recognized impairment charges of US$91 thousand in its investment in Cashido.

In December 2006 and February 2007, the Company invested US$3,360 thousand in the common stock of Vastview. Vastview is a fabless semiconductor company that develops and markets driver ICs and other ICs for the

TFT-LCD

industry. In 2009 and 2013, the Company received US$808 thousand and US$46 thousand from capital reductions at Vastview.

From 2008 to 2010, due to the declining financial performance of Vastview, the Company recognized impairment charges of

US$2,462

thousand in its investment, and an additional charge of

US$29 thousand in 2017.

In May 2018, the Company invested US$1,715

thousand in the preferred stock of ProGrade which is accounted for under the equity method.

ProGrade is a supplier of professional-grade memory cards. In May 2019, the Company sold US$1,715 thousand in the preferred stock of ProGrade and recognized

gain from disposal

US$473 thousand.

In June 2018, the Company invested US$3,000

thousand in the preferred stock of Deep Vision which is accounted for under the cost method. Deep Vision is a developer of low-power deep

learning processors.

Noncurrent Assets Held for Sale

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Noncurrent Assets Held for Sale

8. NONCURRENT ASSETS HELD FOR SALE


	December 31
	2018		2019
	US$		US$
Assets held for sale		10,576		10,405

		10,576		10,405

The Company vacated from premises in an office building located in Shanghai, China and in 2018 took actions to sell this property. The sale plan met all of the held-for-sale criteria in accordance with ASC 360 — Property, Plant and Equipment and accordingly, in 2018, the property was reclassified to noncurrent assets held for sale. The Company has actively marketed the asset, but because of challenging market conditions, no reasonable offers to purchase have been received, and continues to actively seek the sale of this property. In 2017, the Company sold another property to a non-affiliated third party and recognized a gain from disposal of

US$

1,880

thousand.

Property and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

9. PROPERTY AND EQUIPMENT


	December 31
	2018		2019
	US$		US$
Cost:
Land		68,243		68,243
Buildings		18,130		18,130
Machinery and equipment		26,902		26,426
Furniture and fixtures		8,538		6,919
Leasehold and buildings improvement		7,661		7,964
Software		23,971		25,938

Total		153,445		153,620

Accumulated depreciation:
Buildings		3,231		3,632
Machinery and equipment		19,005		18,828
Furniture and fixtures		5,808		5,196
Leasehold and buildings improvement		4,921		5,350
Software		19,269		22,312

		52,234		55,318
Prepayment and construction in progress		199		186

		101,410		98,488

In April 2006, the Company began leasing a property located in Taipei, Taiwan to a third party. The lessee has been renewing the operating lease annually and last renewed in March 2020. Net carrying value of the properties as of December 31, 2018 and 2019 was US$

691

thousand and US$

673

thousand, respectively. Annual rental income from the lease is about US$

thousand each year.

In September 2018, the Company paid

58,931

thousand to acquire land in Hsinchu, Taiwan for the purpose of constructing its future Taiwan headquarters building.

For non-cash investing activities, increase (decrease) in accrued expenses and other current liabilities arising from the purchase of property, plant and equipment was US$1,474 thousand, US$(1,631) thousand and US$(707) thousand for the year ended December 31, 2017, 2018 and 2019, respectively.

Goodwill and Acquired Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets

10. GOODWILL AND ACQUIRED INTANGIBLE ASSETS

Intangible assets:

The intangible assets acquired from the Company’s acquisition of Shannon Systems in 2015 and Bigtera in 2017 are as follows:


	December 31
	2018										2019
	US$										US$
	Cost		Accumulated Impairment			Accumulated Amortization			Net Carrying Amount		Cost		Accumulated Impairment			Accumulated Amortization			Net Carrying Amount
Acquisition-related intangible assets		13,117		(3,444	)		(8,652	)		1,021		13,117		(3,699	)		(9,418	)		—

The Company assesses the impairment of intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. No impairment losses were recognized in 2017. In 2018 and 2019, the Company determined that the carrying amounts for intangible assets of its Bigtera and Shannon units exceeded its fair value, which was close to nil, and recorded impairment charges

of US$

3,444

thousand and US$

255

thousand due to lower than projected business outlook. The impairment was measured based on a discounted cash flow method, which uses assumptions that are considered Level 3 within the fair value hierarchy due to the significant use of unobservable company specific information. Amortization expense of acquisition-related intangible assets for the years ended December 31, 2017, 2018 and 2019 were

US$

2,534

thousand, US$

2,964

thousand and US$766 thousand, respectively.

Goodwill:

Goodwill is not amortized, but instead is reviewed and tested for impairment at least annually and whenever events or circumstances occur which indicate that goodwill might be impaired. The goodwill that resulted from the Company’s acquisition of FCI and Centronix in 2007 and purchase of BTL’s assets in 2011 was US$66,300 thousand. As a result of the acquisition of Shannon Systems in 2015 and Bigtera in 2017, the Company recorded additional goodwill of US$33,204 thousand and US$625 thousand, respectively. Goodwill is tested for impairment annually on November 30. Total goodwill was US$58,331 thousand and US$17,489 thousand as of December 31, 2018 and 2019, respectively. The Company recognizes an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its implied fair value.

The Company elected to adopt ASU 2017-04 starting 2017 (as described in Note 2 above). Under the updated guidance, the Company applied a one-step quantitative test and recorded the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value. Fair value determinations are sensitive to changes in the underlying assumptions and factors including those relating to estimating future operating cash flows to be generated from the reporting unit which are dependent upon historical data and internal forecasts and projections developed by management.

Assumptions used to determine fair value used are classified as Level 3 within the fair value hierarchy due to the significant use of unobservable company-specific information. As a result of the goodwill impairment tests conducted as of November 30, 2018, June 30, 2019 and November 30, 2019, the Company determined that the carrying amounts for Bigtera unit and Shannon unit exceeded the fair value and recorded goodwill impairment charges

of US$

625

thousand and US$

15,715

thousand

in the fourth quarter of 2018 and in the third quarter of 2019, respectively. The company used discounted cash flow method to determine the fair value of the Bigtera unit and the Shannon unit.


	December 31
	2018										2019
	US$										US$
	Cost		Accumulated Impairment			Foreign Currency Adjustment			Net Carrying Amount		Cost		Disposal of FCI			Accumulated Impairment			Foreign Currency Adjustment			Net Carrying Amount
Goodwill		100,129		(41,770	)		(28	)		58,331		100,129		(25,117	)		(57,485	)		(38	)		17,489

Short-Term Bank Loans	12 Months Ended
Short-Term Bank Loans	Dec. 31, 2019
Debt Disclosure [Abstract]
Short-Term Bank Loans	11. SHORT-TERM BANK LOANS The interest expenses for the years ended December 31, 2017, 2018 and 2019 were US$387 thousand, US$355 thousand and nil , respectively. The loan was repaid in 2018 . Interest rates ranged from 1.51 % to 2.95 % per annum on outstanding monthly balance. In 2018, loans no longer required pledged deposits.

Refund Liabilities

12 Months Ended

Dec. 31, 2019

Accrued Expenses and Other Current Liabilities

Refund Liabilities

12. REFUND LIABILITIES


	December 31
	2018		2019
	US$		US$
Refund liabilities (Note 5 )		2,093		2,260

Estimated sales returns and other allowances

are

made and adjusted based on historical experience and the consideration of varying contractual terms.

The changes in the refund liabilities are summarized as follows:


	Year Ended December 31
	2018			2019
	US$			US$
Refund liabilities
Balance, beginning of year		1,432			2,093
Additions		4,908			5,076
Actual sales return and discount		(4,247	)		(4,909	)

Balance, end of year		2,093			2,260

Accrued Expenses and Other Current Liabilities

12 Months Ended

Dec. 31, 2019

Payables and Accruals [Abstract]

13. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES


	December 31
	2018		2019
	US$		US$
Wages and bonus		25,169		26,643
Dividends		32,871		36,919
Research and development payable		3,108		5,693
License fees and royalties		6,739		9,371
Professional fees		1,867		1,772
Equipment		1,264		557
Lease liabilities		—		3,046
Others		8,401		12,075

		79,419		96,076

Pension Plan

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Pension Plan

14. PENSION PLAN

SMI Taiwan, the Company’s largest operating company is a Taiwan registered company and subject to Taiwan’s Labor Pension Act (the “Act”), which became effective on July 1, 2005, and the pension mechanism under the Act is deemed a defined contribution plan. The employees who were subject to the Labor Standards Law prior to July 1, 2005 could choose to be subject to the pension mechanism under the Act or continue to be

subject to the pension mechanism under the

Labor Standards Law. For those employees who were subject to the Labor Standards Law prior to July 1, 2005 and still work for the same company after July 1, 2005 and have chosen to be subject to the pension mechanism under the

Act, their seniority as of July 1, 2005 were maintained. The Act prescribes that the rate of contribution by an employer to employees’ pension accounts per month will not be less than

6% of each employee’s monthly salary. According to the Act, SMI Taiwan made monthly contributions and recognized pension costs of

US$1,579 thousand, US$1,682 thousand and US$1,783 thousand for the years ended December 31, 2017, 2018 and 2019, respectively.

The Company

provides a defined benefit plan to the employees of SMI Taiwan under the Labor Standards Law that offers benefits based on an employee’s length of serv

ice and average monthly salary for the

six-month

period prior to retirement. The Company contributes an amount equal to

% of salaries paid each month to a pension funds (the “Funds”), which is administered by the Labor Pension Fund Supervisory Committee established by the government (the “Committee”) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefit for employees who conform to retirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The government is responsible for the administration of all the defined benefit plans for the companies in Taiwan under the Labor Standards Law. The government also sets investment policies and strategies, determines investment allocation and selects investment managers. As of December

2018

and

2019

, the asset allocation was primarily in cash, equity securities and debt securities. Furthermore, under the Labor Standards Law, the rate of return on assets shall not be less than the average interest rate on a

two-year

time deposit published by the local banks. The government is responsible for any shortfall in the event that the rate of return is less than the required rate of return. However, information on how investment allocation decisions are made, inputs and valuation techniques used to measure the fair value of plan assets, the effect of fair value measurements using significant unobservable inputs on changes in plan assets for the period and significant concentrations of risk within plan assets is not fully made available to the Company by the government. Therefore, the Company is unable to provide the required fair value disclosures related to pension plan assets. Future contributions will be based on

% of the employee salaries at that time. The Company estimates its contribution for the year ending December

2020

to be US$

thousand which was determined based on

% of estimated salaries in

2020

Starting in 2010, the Company provides a defined benefit pension plan to the Korean employees of FCI with at least one year of service. FCI’s overall investment strategy is to avoid a negative return on plan assets. On May 31, 2019, the Company divested FCI.

For employees under defined contribution pension plans, pension costs are recorded based on the actual contributions made to employees’ individual pension accounts. For employees under defined benefit pension plans, pension costs are recorded based on actuarial calculations. Determining the cost associated with such benefits is dependent on various actuarial assumptions, including discount rate, expected return on plan assets, compensation increase, employee mortality and turnover rates. The Company reviewed its actuarial assumptions at the measurement date on December 31 every year. The effect of modifications to assumptions is recorded in accumulated other comprehensive loss and amortized to net periodic cost over future periods using the corridor method. The Company believes that assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. Independent actuaries perform the required calculations to determine expense in accordance with U.S. GAAP. Actual results may differ from the actuarial assumptions and are generally accumulated and amortized into earnings over future periods. The net periodic costs are recognized as employees render services necessary to earn the benefits.

The changes in benefits obligation and plan assets and the reconciliation of funded status are as follows:


	December 31
	2017			2018			2019
	US$			US$			US$
Change in benefit obligation
Projected benefit obligation at beginning of year		4,242			5,131			5,838
Service cost		1,572			568			275
Interest cost		336			126			91
Actuarial loss (gain)		(665	)		146			72
Benefits paid		(354	)		(133	)		(450	)
Disposal of subsidiary		—			—			(4,072	)

Projected benefit obligation at end of year		5,131			5,838			1,754

Change in plan assets
Fair value of plan assets at beginning of year		3,902			5,114			5,410
Actual return on plan assets		81			63			98
Employer contributions		1,358			331			85
Benefits paid		(227	)		(98	)		(448	)
Disposal of subsidiary		—			—			(3,658	)

Fair value of plan assets at end of year		5,114			5,410			1,487

Funded status recognized as an other liabilities		(17	)		(428	)		(267	)

Amounts recognized in accumulated other comprehensive income consist of the following:


	Year Ended December 31
	2017		2018		2019
	US$		US$		US$
Net loss		678		678		693

Total recognized in accumulated other comprehensive income		678		678		693

The accumulated benefit obligation for all defined benefit pension plans was US$3,210 thousand, US$3,864 thousand and US$939 thousand at December 31, 2017, 2018 and 2019, respectively.

The components of net periodic benefit cost are as follows:


	Year Ended December 31
	2017			2018			2019
	US$			US$			US$
Service cost		1,572			568			275
Interest cost		336			126			91
Projected return on plan assets		(58	)		(78	)		(77	)
Amortization of unrecognized net transition obligation and unrecognized net actuarial gain		37			41			48

Net periodic benefit cost		1,887			657			337

Other changes in plan assets and benefit obligation recognized in other comprehensive loss:


	2017			2018		2019
	US$			US$		US$
Recognize the decrease in net gain (loss)		(285	)		—		15
Amortization of net loss		—			—		—

Total recognized in other comprehensive loss (income)		(285	)		—		15

The estimated net gain for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is US$35 thousand.

Expected benefit payments:


	US$
2020		7
2021		43
2022		50
2023		18
2024		77
2025 and thereafter		405

The actuarial assumptions to determine the benefit obligations were as follows:


	2017						2018						2019
	Taiwan			Korea			Taiwan			Korea			Taiwan
Weighted-average assumptions used to determine benefit obligations:
Discount rate		1.63	%		4.10	%		1.38	%		3.60	%		1.00	%
Rate of compensation increase		4.25	%		3.50	%		4.25	%		3.00	%		4.00	%
Weighted-average assumptions used to determine net projected benefit cost:
Discount rate		1.63	%		4.10	%		1.38	%		3.60	%		1.00	%
Expected long-term return on plan assets		1.75	%		1.10	%		1.75	%		1.40	%		2.00	%
Rate of compensation increase		4.25	%		3.50	%		4.25	%		3.00	%		4.00	%

In 2018, FCI’s pension plan assets were invested in principal guaranteed interest insurance contracts and fixed bank deposits, which are principal and interest guaranteed products and are classified as Level 2. These Level 2 securities were valued by discounting future cash flows using benchmark yield rates.

The fair values of FCI’s pension plan assets at

December 31, 2018

are as follows:


	December 31
	2018
	US$
Guaranteed interest contract
Kyobo Life Insurance Co. Ltd.		1,605
Shinhan Investment Co.		466
Fixed deposit
Industrial Bank of Korea		2,014

		4,085

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

15. INCOME TAXES

The components of income tax expense are as follows:


	Year Ended December 31
	2017		2018			2019
	US$		US$			US$
Current		23,465		13,455			6,558
Deferred		581		(1,664	)		1,118

Income tax expense		24,046		11,791			7,676

The income (loss) before income taxes for domestic and foreign entities is as follows:


	Year Ended December 31
	2017			2018			2019
	US$			US$			US$
Domestic		(27,902	)		(23,750	)		(3,911	)
Foreign		126,903			133,611			75,985

		99,001			109,861			72,074

Since the Company is based in the Cayman Islands, a British overseas territory with no corporate income tax, tax on pretax income is calculated at the Cayman Islands statutory rate of zero for each year.

The Company and its subsidiaries file separate income tax returns. A reconciliation of income tax expense on pretax income at statutory rate and income tax expense is shown below:


	Year Ended December 31
	2017			2018			2019
	US$			US$			US$
Tax expense at statutory rate of Cayman		—			—			—
Differences between Cayman and foreign statutory tax rates		24,255			12,509			846
Permanent differences		(4,249	)		(703	)		4,109
Temporary differences		(1,445	)		(159	)		638
Alternative minimum tax		4			9			1
Income tax on undistributed earnings		2,709			408			575
Net changes in income tax credit		166			116			3,917
Net changes in valuation allowance of deferred income tax assets		(2,401	)		1,243			(1,820	)
Net operating loss carryforwards		1,492			(1,431	)		(294	)
Liabilities related to unrealized tax benefits		3,455			(302	)		(171	)
Adjustment of prior years’ taxes and others		60			101			(125	)

Income tax expense		24,046			11,791			7,676

Deferred income tax assets (liabilities) are as follows:


	December 31
	2018			2019
	US$			US$
Notes and accounts receivable		47			3
Stock-based compensation		2,103			1,104
Allowance for sales return		210			541
Inventory reserve		1,283			1,733
Foreign currency translation		(8	)		(20	)
Property and equipment		(52	)		(359	)
Investment tax credits		8,684			4,532
Net operating loss carryforwards		11,895			14,028
Others		945			494
Valuation allowance		(20,041	)		(18,108	)

		5,066			3,948

The valuation allowance shown in the table above relates to net operating loss carryforwards, tax credits and temporary differences for which the Company believes that realization is uncertain. Valuation allowance increased by US$

969

thousand for the year ended December 31, 2018 and decreased

US$

1,933

thousand for the year ended December 31, 2019, respectively. The decrease in valuation allowance in 2019 was primarily due to the FCI disposal. The increase in valuation allowance in 2018 is primarily due to the uncertainty in generating sufficient taxable income in the future and utilization of operating loss

carryforwards

and research and development credits before they expire.

Starting from 2018 the corporate income tax rate in Taiwan increased from 17% to 20%. In addition, the rate of the corporate surtax applicable to 2018 unappropriated earnings was reduced from 10% to 5%.

As of December 31, 201

, the Company’s U

federal net operating loss carryforwards for federal income tax purposes were approximately US$9,475 thousand. If not utilized, the federal net operating loss carryforwards will expire in 2039.

As of December 31, 201

, the Company’s U

federal

and state research and development tax credit

carryforwards

for federal and state income tax purposes were approximately US$

2,659

thousand and US$

1,873

thousand, respectively. If not utilized, the federal tax credit

carryforwards

will expire starting in

2039

while the state tax credit

carryforward

has

no expiration date

Current U

federal and California state laws include substantial restrictions on the utilization of net operating losses and credits in the event of an “ownership change” of a corporation. Accordingly, the Company’s ability to utilize net operating loss and tax credit carryforwards may be limited as a result of such “ownership change”. Such a limitation could result in the expiration of carryforwards before they are utilized.

As of December 31, 2019, the Company had accumulated undistributed earnings from a foreign subsidiary of US$345 million. No deferred tax liability was recorded in respect of those amounts as these earnings are considered indefinitely reinvested. It is not practicable to estimate the amount of unrecognized deferred tax liabilities for these undistributed foreign earnings.

Unrecognized Tax Benefit

A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows:


	Year Ended December 31
	2017			2018			2019
	US$			US$			US$
Balance, beginning of year		10,286			15,056			18,707
Increases in tax positions taken in current year		6,647			5,937			6,890
Decrease in tax position taken in prior year primarily related to the resolution of tax audit		(1,877	)		(2,286	)		(4,942	)

Balance, end of year		15,056			18,707			20,655

At December 31, 2019, the Company had US$20,655 thousand of unrecognized tax benefits that if recognized would affect the effective tax rate. For the years ended December 31, 2017, 2018 and 2019, the total amount of interest expense and penalties related to uncertain tax positions recorded in the provision for income tax expense was approximately US$617 thousand, US$776 thousand and US$319 thousand, respectively. The total amount of accrued interest and penalties recognized as of December 31, 2018 and 2019 was US$4,091 thousand and US$4,511 thousand, respectively. The Company does not expect uncertain tax positions to change in the next twelve months, except in the case of settlements with tax authorities, the likelihood and timing of which are difficult to estimate.

The Company files income tax returns in

the

.S.

and foreign jurisdictions. The following table summarizes the Company’s major jurisdictions and tax year that remain subject to examination by tax authorities as of December 31, 2019:


Tax Jurisdiction	Tax Years
China		2016 and onward
Hong Kong		2016 and onward
Taiwan		2014 and onward
United States		2014 onward

Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Federal Home Loan Banks [Abstract]

Shareholders' Equity

16. SHAREHOLDERS’ EQUITY

Dividends

The Company declared cash dividends per ordinary share during the periods presented as follows:


	2017				2018				2019
	Dividends Per Share (US$)		Amount (in US$ thousand)		Dividends Per Share (US$)		Amount (in US$ thousand)		Dividends Per Share (US$)		Amount (in US$ thousand)
First quarter	$	0.050	$	7,134	$	0.075	$	10,832	$	0.075	$	10,956
Second quarter	$	0.050		7,148	$	0.075		10,835	$	0.075		10,957
Third quarter	$	0.050		7,155	$	0.075		10,843	$	0.075		10,029
Fourth quarter	$	0.075		10,737	$	0.075		10,849	$	0.0875		12,171

			$	32,174			$	43,359			$	44,113

Beginning on November 2, 2015, the board of directors, instead of declaring a quarterly dividend, declared an annual dividend of

0.60

, equivalent to

0.15

per ordinary shares, payable in four quarterly installments. The board of directors declared annual dividends of

1.20

$1.20 and

$1.40, equivalent to

0.30

and

0.35

per common share, payable in four quarterly installments on October 24, 2017, October 29, 2018 and October 25, 2019, respectively. Future dividends, if any, will be declared by and subject to the discretion of the Company’s board of directors. If the Company’s board of directors decides to distribute dividends, the form, frequency and amount of such dividends will depend upon the Company’s future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors the board of directors may deem relevant

Any future dividend the Company declares will be paid to the holders of ADSs, subject to the terms of the deposit agreement, to the same extent as holders of the Company’s ordinary shares, to the extent permitted by applicable laws and regulations, less the fees and expenses payable under the deposit agreement. Any dividend the Company declares will be distributed by the depositary bank to the holders of our ADSs. Cash dividends on our ordinary shares, if any, will be paid in U.S. dollars. For non-cash financing activities, net increase in dividends payable arising from the declared dividend was US$11,069 thousand, US$420 thousand and US$4,048 thousand for the year ended December 31, 2017, 2018 and 2019, respectively.

Treasury Stock

On November 21, 2018, the board of directors of the Company approved share buyback plans to repurchase up to

US$200

million of the Company’s ADSs over a 24 month period. The program did not obligate the Company to acquire any particular amount of ADS and the program may be modified or suspended at any time at the Company’s discretion. All the treasury stock under this share repurchase program was retired in September 2019.

For the years ended December 31, 2018 and 2019, the Company repurchased 1,006 thousand and 762 thousand ADSs for a total cost of US$34,755 thousand and US$25,103 thousand, respectively. The weighted average purchase price per ADS repurchased was US$34.54 and US$32.82 in 2018 and 2019, respectively.

Equity Incentive Plan

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Equity Incentive Plan

17. EQUITY INCENTIVE PLAN

2005 Equity Incentive Plan and 2015 Equity Incentive Plan

On April 22, 2005, the Company adopted its 2005 Equity Incentive Plan (“the 2005 Plan”). The 2005 Plan provides for the grant of stock options, stock bonuses, restricted stock awards, restricted stock units and stock appreciation rights, which may be granted to employees (including officers), directors and consultants. The 2005 Plan reserved 10,000 thousand shares of ordinary shares, inclusive of the number of assumed share options under the 2004 Plan, for issuance upon the exercise of stock options.

In 2006, the Company amended the

2005 Plan to reserve an additional

15,000

thousand ordinary shares for issuance upon exercise of stock options and restricted stock units. In 2009, the Company amended the Plan to reserve an additional

15,000

thousand ordinary shares for issuance upon exercise of stock options and restricted stock units.

Restricted stock units are converted into shares of the Company’s ordinary shares upon vesting on

one-for-one

basis. The vesting of restricted stock unit is subject to the employee’s continuing service to the Company. The cost of these awards is determined using the fair value of the Company’s ordinary share on the date of the grant, and compensation is recognized on a straight-line basis over the requisite service period. The Company’s restricted stock units are considered

non-vested

share awards as defined under ASC 718.

In April 2010, the Company’s Board of Directors and Compensation Committee approved an employee stock option exchange program that required certain employees to exchange eligible stock options for a lesser number of new stock options that have approximately the same fair values as the options surrendered. Eligible options included stock options granted between August 17, 2005 and July 31, 2008 that had an exercised price

above US$1.85. In 2010, 4,369 thousand eligible stock options were exchanged for 3,785 thousand new stock options granted. The new stock options have an exercise price of US$1.47, which was equal to the market price of the Company’s ordinary share on April 26, 2010, the date eligible stock options were surrendered and new stock options granted. The new stock options were issued under the 2005 Plan and are subject to its terms and conditions. The new stock options will continue to vest according to the original vesting schedule. Using the Black-Scholes option pricing model, the Company determined that the fair value of the surrendered stock options on a

grant-by-grant

basis was approximately equal, as of the date of the exchange, to the fair value of the new stock options granted, resulting in insignificant incremental share-based compensation.

On June 3, 2015, the Company adopted its 2015 Equity Incentive Plan (“the 2015 Plan”). The 2015 Plan provides for the grant of stock options, stock bonuses, restricted stock awards, restricted stock units and stock appreciation rights, which may be granted to employees (including officers), directors and consultants. The 2015 Plan reserved 20,000 thousand shares of ordinary shares for issuance upon exercise of stock options and restricted stock units.

Stock Option and Restricted Stock Units Activity

The following is a summary of, the 2005 Plan and the 2015 Plan, which includes stock options and restricted stock units:


	Unit (in Thousands)
Available for grant at January 1, 2017		18,751
Restricted stock units granted		(1,391	)
Restricted stock units forfeited		27

Available for grant at December 31, 2017		17,387
Restricted stock units granted		(1,622	)
Restricted stock units forfeited		22

Available for grant at December 31, 2018		15,787
Restricted stock units granted		(1,584	)
Restricted stock units forfeited		57

Available for grant at December 31, 2019		14,260

Stock Options

A summary of the stock option activity and related information is as follows:


	Number of Options Shares (in Thousands)			Weighted Average Exercise Price (US$)		Weighted Average Remaining Contractual Life (Years)
Outstanding at January 1, 201 7		258			1.47		0.25
Options exercised		(258	)		1.47

Outstanding at December 31, 2017		—			—		—

No stock options were granted in 2017, 2018 and 2019. The intrinsic value of options exercised, determined as of the date of option exercise, was US$3,040 thousand, nil and nil

, 2017, 2018 and 2019, respectively.

As of December 31, 2019, total unrecognized compensation cost related to

non-vested

share-based compensation awards granted under the Company’s stock option plans, net of estimated forfeitures, was nil.

The total cash received from employees as a result of employee stock option exercises were US$380 thousand, nil and nil

for the years ended December 31, 2017, 2018 and 2019, respectively.

The related tax effect for stock-based compensation benefit (expense) were US$

124

thousand, US$

177

thousand and (US$49) thousand for 2017, 2018 and 2019, respectively. The related tax effect for stock-based compensation expense for option and restricted stock units exercised during 2017, 2018 and 2019 was US$

2,273

thousand, US$

2,211

thousand and US$

3,446

thousand, respectively. The related tax effect was determined using the applicable tax rates in jurisdictions to which this expense relates.

Restricted Stock Units

A summary of the status of restricted stock units and changes is as follows:


	Number of Non-vested Stock Units (in Thousands)			Weighted Average Grant Date Fair Value (US$)		Weight Average Remaining Recognition Period (Years)
Non-vested at January 1, 2017		1,767			11.65		0.47
Restricted stock units granted		1,391			10.75
Restricted stock units vested		(1,593	)		12.08
Restricted stock units forfeited		(27	)		10.69

Non-vested at December 31, 2017		1,538			10.36		0.33
Restricted stock units granted		1,622			13.86
Restricted stock units vested		(1,517	)		9.79
Restricted stock units forfeited		(22	)		11.75

Non-vested at December 31, 2018		1,621			13.85		0.38
Restricted stock units granted		1,584			8.01
Restricted stock units vested		(1,505	)		14.12
Restricted stock units forfeited		(57	)		9.59

Non-vested at December 31, 2019		1,643			8.08		0.29

As of December 31, 2019, there was US$3,665 thousand of total unrecognized compensation cost related to restricted stock units granted under the 2015 Plan.

Stock-based Compensation Expense

The following table shows total stock-based compensation expense included in the Consolidated Statements of Income for the years ended December 31, 2017, 2018 and 2019.


	Year Ended December 31
	2017		2018		2019
	US$		US$		US$
Cost of sales		293		390		305
Research and development		9,255		13,278		9,927
Sales and marketing		3,167		3,407		1,789
General and administrative		2,779		3,704		2,570

		15,494		20,779		14,591

Lease

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lease

18.

LEASE

Operating Leases

The Company entered into various operating lease agreements which consist of real property and office equipment with lease periods expiring between fiscal years 2020 and 2027.

Future minimum lease payments under the operating leases as of December 31, 2019, were as follows:


	Operating Lease Obligations
Fiscal Year:
2020	$	3,321
2021		2,652
2022		1,458
2023		1,087
2024		732
2025 and thereafter		51

Total		9,301
Less imputed interest		634

Present value of net future minimum lease payments		8,667
Less operating lease liabilities-current		3,046

Long-term operating lease liabilities	$	5,621

Operating lease expense for the years ended December 31, 2017, 2018 and 2019 of US$3,131 thousand, US$3,933 thousand, and US$4,775 thousand, respectively. For the supplemental cash flow information related to lease, the cash paid for amounts included in the measurement of operating lease liabilities was US$3,233 thousand for the year ended December 31, 2019.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	19. COMMITMENTS AND CONTINGENCIES FCI provided their employees with collateral for personal loans which is deposited at a designated bank and the amount deposited was US$ 448 thousand at December 31, 2018. Such amounts were accounted for as restricted cash. Litigation The Company is subject to legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. Although the outcome of such proceedings and claims cannot be predicted with certainty, management does not believe that the outcome of any of these matters will have a material adverse effect on our business, results of operations, financial position or cash flows. Any litigation, however, involves potential risk and potentially significant litigation costs, and therefore there can be no assurance that any litigation which is now pending or which may arise in the future would not have such a material adverse effect on our business, financial position, results of operations or cash flows. All American Semiconductor, Inc. (“All American” or “AASI”) was a former distributor for the Company. On April 25, 2007, All American filed for Chapter 11 bankruptcy protection. At the time of the filing, the Company had US$256 thousand of unpaid accounts receivable from All American. On April 17, 2009 SMI USA and related entities were named as defendants in an adversary proceeding filed by the AASI Creditor Liquidating Trust (“CLT”) in the bankruptcy case pending in the U.S. Bankruptcy Court for the Southern District of Florida. The CLT was seeking the return of allegedly avoidable transfers in the amount of US$854 thousand. SMI USA filed an answer and affirmative defenses. In March 2010, SMI USA settled with the CLT by paying the amount of US$220 thousand and on April 1, 2010, the Bankruptcy Court granted the motion to approve stipulations to compromise controversy. On August 23, 2010, the Court entered an order dismissing the adversary proceeding. In June 2011, Liquidating Trustee for the CLT filed the AASI Creditor Liquidating Trustee’s Seventeenth Omnibus Objection to Claims but in August 2011, withdrew it with respect to SMI USA’s proof of claim. As a holder of allowed claims, we are entitled to receive distribution pursuant to the bankruptcy plan. On December 31, 2017, we received total distributions of US$265 thousand from the CLT and this case is officially closed.

Segment Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Information

20. SEGMENT INFORMATION

The Company is the global leader and pioneer in developing NAND flash controllers for solid storage devices. The Company currently operates as one reportable segment. The chief operating decision

maker (“CODM”) is the Chief Executive Officer. The fact that the Company operates in only one reportable segment is because the decisions on allocation of resources and other operational decisions are made by the CODM based on his direct involvement with the Company’s operations and product development.

The Company groups its products into three categories, based on the markets in which they may be used. The following summarizes the Company’s revenue by product category:


	Year Ended December 31
	2017		2018		2019
	US$		US$		US$
Mobile Storage		480,735		494,012		441,700
Mobile Communications		37,447		30,163		10,356
Others		5,222		6,173		5,197

		523,404		530,348		457,253

Revenue is attributed to a geographic area based on the

bill-to

location. The following summarizes the Company’s revenue by geographic area:


	Year Ended December 31
	2017 (1)		2018 (1)		2019
	US$		US$		US$
Taiwan		72,768		70,984		77,117
United States		40,344		53,476		63,432
Korea		176,813		135,845		52,885
China		126,048		142,948		123,261
Malaysia		49,919		49,444		50,663
Singapore		25,057		35,387		45,032
Others		32,455		42,264		44,863

		523,404		530,348		457,253

(1)	The figure represents the revenue by geographic area based on the bill-to location. Commencing in 2019, revenue derived from Japan was reclassified to others. The above breakdown for 2017 and 2018 has been reclassified on the same basis.

Major customers representing at least 10% of net sales


	Year Ended December 31
	2017				2018				2019
	US$		%		US$		%		US$		%
Intel		50,205		10		67,791		13		75,608		16
Micron		*		*		*		*		67,682		15
SK Hynix		150,762		29		111,265		21		*		*

*	Less than 10%

Long-lived assets (property and equipment, net) by geographic area were as follows:


	Year Ended December 31
	2017		2018		2019
	US$		US$		US$
Taiwan		36,369		96,920		94,996
United States		242		348		315
Korea		1,936		1,645		23
China		12,798		2,447		3,117
Japan		25		50		37

		51,370		101,410		98,488

Fair Value Measurement

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurement

21. FAIR VALUE MEASUREMENT

The following section describes the valuation methodologies the Company uses to measure assets and liabilities at fair value.

The Company uses quoted prices in active markets for identical assets to determine fair value where applicable. This pricing methodology applies to Level 1 investments such as bond funds. The fair value of the principal protected notes was determined by its present value utilizing rate of return as the market observable input and therefore, these are classified as Level 2 instruments. This is because there generally are no quoted prices in active markets for identical principal protected notes at the reporting date. Hence, in order to determine the fair value, the Company must use observable inputs other than quoted prices in active markets for identical or similar instruments, quoted prices for similar instruments in active markets, or other inputs that are observable.

For the years ended December 31, 2018 and 2019, none of the Company’s assets measured on a recurring basis was determined by using significant unobservable inputs.

The following table presents our assets measured at fair value on a recurring basis as of December 31, 2018 and 2019:

December 31, 2018

Level 1

Level 2

Level 3

Total

US$

Assets

Short-term investments — trading securities

—

3,609

—

3,609

December 31, 2019

Level 1

Level 2

Level 3

Total

US$

Assets

Short-term investments — trading securities

—

2,010

—

2,010

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	22 . RELATED PARTY TRANSACTIONS Lease support arrangements, known in Korea as Jeonse, were in place for certain Korean employees, primarily executive officers. These arrangements, in place from 2007 to 2019, consisted of a program which the Company facilitated housing arrangements by depositing funds with lessors who are either third parties, employees or relatives of the employees. Such funds would serve to establish the leasehold interest for the employees. When such arrangements were finished, the Company received the deposited funds back in full. The deposited amount of these arrangements for such employees was US$1.5 million and nil as of December 31, 2018, and 2019, respectively. These arrangements ended in 2019 with the divestiture of FCI.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Concentration of Credit Risk and Significant Customers

Basis of Presentation

The consolidated financial statements have been prepared in accordance with U.S. GAAP. The consolidated financial statements include the accounts of SMTC and its wholly-owned subsidiaries.

The Company owns

100

% of the outstanding shares in all of its subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation.

Use of Estimates

Disposal of Subsidiary

On May 31, 2019, the Company completed the sale of FCI to Dialog Semiconductor for a total consideration of approximately

US$

54 million.

The Company derecognized the assets and liabilities and recorded a gain

of US$12,409

thousand, net of transaction fees on the disposal, which is the difference between the consideration of US$54 million and

the

US$39,367

thousand carrying value of the subsidiary.

US$5,400

Historically, a relatively small number of customers have accounted for a significant portion of our net revenue. Sales to two customers in 2017

2018

and 2019,

accounted for 10% or more of

our

net

evenue

, representing

39%

34%

and 31%

our

net

revenue

in 2017

2018

and 2019

, respectively. In 2019, the significant customers were Intel and Micron and in 2017 and 2018,

were

Hynix

and Intel. The Company’s top ten customers in 2017

2018

and 2019

accounted for approximately

and 74%

of net sales, respectively.

Fair Value of Financial Instruments

Level 1 — Use unadjusted quoted prices in active markets for identical assets or liabilities.

Level 3 — Use inputs that are generally unobservable and reflect the use of significant management judgments and estimates.

See Note 21, “Fair Value Measurement”, for the related disclosure.

Cash Equivalents

on-going

published interest rate applicable for the actual period of the time deposits in the event of an early withdrawal. Cash and cash equivalents are stated at cost, which approximates their fair value.

Short-term Investments

held-to-maturity

Allowance for Doubtful Receivables

Inventories

Inventories are stated at the lower of cost or net realizable value for raw materials, work in process and finished goods

Long-term Investments

Noncurrent Assets Held for Sale

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Significant additions, renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred.

on property

and

equipment were

approximately US$10,599 thousand, US$11,832 thousand and US$12,447 thousand

for the years ended December 31, 2017, 2018 and 2019

, respectively.

Lease

Government Grants

non-refundable.

Goodwill and Intangible Assets

Impairment of Goodwill and Long-Lived Assets

two-step

In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”)

2017-04,

which removes step two from the goodwill impairment test. The Company elected to early adopt this ASU in the fourth quarter of 2017, in conjunction with the Company’s annual review for impairment.

Other Assets

Other assets primarily consist of industrial property right and deposit for office leases.

Restricted Assets

Bank loans

Revolver credit from financial institutions are stated at the amount of unpaid principal.

Other long-term liabilities

Other long-term liabilities primarily consist of noncurrent lease liabilities and unrecognized tax benefit.

Pension Costs

Revenue Recognition

The Company provides the warranty for manufacturing defects of its products. Warranty returns have been infrequent and relate to defective or

off-specification

Research and Development

Income Taxes

Foreign Currency Transactions

Translation of Foreign Currency Financial Statements

Comprehensive Income (Loss)

Comprehensive income and loss represents net income (loss) plus the results of certain changes in shareholders’ equity during a period from

non-owner

sources. The following table presents the components of accumulated other comprehensive income (loss) as of December 31, 2017

2018

and 2019


	Year Ended December 31, 201 7									Year Ended December 31, 201 8									Year Ended December 31, 201 9
	US$									US$									US$
	Foreign currency items			Defined benefit pension plans			Accumulated other comprehensive income (loss)			Foreign currency items			Defined benefit pension plans			Accumulated other comprehensive income (loss)			Foreign currency items			Defined benefit pension plans			Accumulated other comprehensive income (loss)
Beginning balance		(69	)		(963	)		(1,032	)		3,321			(678	)		2,643			1,173			(678	)		495
Current-period change		3,390			285			3,675			(2,148	)		—			(2,148	)		(1,265	)		(15	)		(1,280	)
Ending balance		3,321			(678	)		2,643			1,173			(678	)		495			(92	)		(693	)		(785	)

Legal Contingencies

Earnings Per Share

were 868 thousand shares (218 thousand ADSs

389 thousand shares (97

thousand ADSs) and 475 thousand shares (119 thousand ADSs)

for the years ended December 31, 2017

2018

and 2019

, respectively.

Stock-Based Compensation

Treasury Stock

Treasury stock is stated at cost and shown as a reduction to shareholders’ equity.

Recent Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Components of Accumulated Other Comprehensive Income (Loss)

The following table presents the components of accumulated other comprehensive income (loss) as of December 31, 2017

2018

and 2019


	Year Ended December 31, 201 7									Year Ended December 31, 201 8									Year Ended December 31, 201 9
	US$									US$									US$
	Foreign currency items			Defined benefit pension plans			Accumulated other comprehensive income (loss)			Foreign currency items			Defined benefit pension plans			Accumulated other comprehensive income (loss)			Foreign currency items			Defined benefit pension plans			Accumulated other comprehensive income (loss)
Beginning balance		(69	)		(963	)		(1,032	)		3,321			(678	)		2,643			1,173			(678	)		495
Current-period change		3,390			285			3,675			(2,148	)		—			(2,148	)		(1,265	)		(15	)		(1,280	)
Ending balance		3,321			(678	)		2,643			1,173			(678	)		495			(92	)		(693	)		(785	)

Cash, Cash Equivalents, and Restricted Cash (Tables)

12 Months Ended

Dec. 31, 2019

Cash and Cash Equivalents [Abstract]

Details of Cash, Cash Equivalents, and Restricted Cash


	December 31
	2018		2019
	US$		US$
Cash and deposits in bank		54,918		61,184
Time deposits		220,047		229,419
Bonds acquired under repurchase agreements		10,024		32,563

Total cash and cash equivalents		284,989		323,166
Restricted cash		22,138		25,087

		307,127		348,253

Short-Term Investments (Tables)

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Short Term Investments


	December 31
	2018		2019
	US$		US$
Trading securities		3,609		2,010

Notes and Accounts Receivable (Tables)

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Summary of Notes and Accounts Receivable


	December 31
	2018			2019
	US$			US$
Trade accounts receivable		92,408			110,351
Allowance for doubtful accounts		(645	)		(1,617	)

		91,763			108,734

Changes in Allowances

The changes in the allowances are summarized as follows:


	Year Ended December 31
	2017			2018		2019
	US$			US$		US$
Allowances for doubtful accounts
Balance, beginning of year		723			598		645
Additions (reversals) charged to expense, net		(125	)		47		1,164
Write-offs		—			—		(192	)

Balance, end of year		598			645		1,617


	Year Ended December 31
	2017
	US$
Allowances for sales returns and discounts *
Balance, beginning of year		1,624
Additions charged to expense, net		3,093
Actual sales return and discount		(3,285	)

Balance, end of year		1,432

*	As of January 1, 2018, the Company has adopted the new revenue recognition standard (ASC 606). Allowance for sales returns and discounts for the year ended December 31, 2018 has been adjusted to reflect these changes in accounting policies, see Note 2 summary of significant accounting policies.

Inventories (Tables)

12 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Components of Inventory

The components of inventories are as

follows


	December 31
	2018		2019
	US$		US$
Finished goods		26,059		26,305
Work in process		30,830		37,342
Raw materials		24,629		24,792

		81,518		88,439

Long-Term Investments (Tables)

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Long-Term Investments

As of December 31, 2018 and 2019, the Company held equity investments in several privately-held companies with the carrying value as follows:


	Percentage of Ownership						D ecember 3 1
	2018			2019			2018		2019
							US$		US$
Cost less impairment method:
Cashido Corp. (Cashido)		1.8	%		0.6	%		—		—
Vastview Technology, Corp. (Vastview)		2.9	%		2.9	%		—		—
Deep Vision, Inc (Deep Vision)		14.8	%		14.8	%		3,000		3,000
Equity method:
ProGrade Digital, Inc. (ProGrade)		49.0	%		—			1,242		—

								4,242		3,000

Noncurrent Assets Held for Sale (Tables)

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Summary of Noncurrent Assets Held for Sale


	December 31
	2018		2019
	US$		US$
Assets held for sale		10,576		10,405

		10,576		10,405

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment


	December 31
	2018		2019
	US$		US$
Cost:
Land		68,243		68,243
Buildings		18,130		18,130
Machinery and equipment		26,902		26,426
Furniture and fixtures		8,538		6,919
Leasehold and buildings improvement		7,661		7,964
Software		23,971		25,938

Total		153,445		153,620

Accumulated depreciation:
Buildings		3,231		3,632
Machinery and equipment		19,005		18,828
Furniture and fixtures		5,808		5,196
Leasehold and buildings improvement		4,921		5,350
Software		19,269		22,312

		52,234		55,318
Prepayment and construction in progress		199		186

		101,410		98,488

Goodwill and Acquired Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Cumulative Value of Intangible Assets Related to Acquisition


	December 31
	2018										2019
	US$										US$
	Cost		Accumulated Impairment			Accumulated Amortization			Net Carrying Amount		Cost		Accumulated Impairment			Accumulated Amortization			Net Carrying Amount
Acquisition-related intangible assets		13,117		(3,444	)		(8,652	)		1,021		13,117		(3,699	)		(9,418	)		—

Schedule of Goodwill


	December 31
	2018										2019
	US$										US$
	Cost		Accumulated Impairment			Foreign Currency Adjustment			Net Carrying Amount		Cost		Disposal of FCI			Accumulated Impairment			Foreign Currency Adjustment			Net Carrying Amount
Goodwill		100,129		(41,770	)		(28	)		58,331		100,129		(25,117	)		(57,485	)		(38	)		17,489

Refund Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Change in Refund Liabilities


	December 31
	2018		2019
	US$		US$
Refund liabilities (Note 5 )		2,093		2,260

Estimated sales returns and other allowances

are

made and adjusted based on historical experience and the consideration of varying contractual terms.

The changes in the refund liabilities are summarized as follows:


	Year Ended December 31
	2018			2019
	US$			US$
Refund liabilities
Balance, beginning of year		1,432			2,093
Additions		4,908			5,076
Actual sales return and discount		(4,247	)		(4,909	)

Balance, end of year		2,093			2,260

Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities


	December 31
	2018		2019
	US$		US$
Wages and bonus		25,169		26,643
Dividends		32,871		36,919
Research and development payable		3,108		5,693
License fees and royalties		6,739		9,371
Professional fees		1,867		1,772
Equipment		1,264		557
Lease liabilities		—		3,046
Others		8,401		12,075

		79,419		96,076

Pension Plan (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Changes in Benefits Obligation and Plan Assets and Reconciliation of Funded Status

The changes in benefits obligation and plan assets and the reconciliation of funded status are as follows:


	December 31
	2017			2018			2019
	US$			US$			US$
Change in benefit obligation
Projected benefit obligation at beginning of year		4,242			5,131			5,838
Service cost		1,572			568			275
Interest cost		336			126			91
Actuarial loss (gain)		(665	)		146			72
Benefits paid		(354	)		(133	)		(450	)
Disposal of subsidiary		—			—			(4,072	)

Projected benefit obligation at end of year		5,131			5,838			1,754

Change in plan assets
Fair value of plan assets at beginning of year		3,902			5,114			5,410
Actual return on plan assets		81			63			98
Employer contributions		1,358			331			85
Benefits paid		(227	)		(98	)		(448	)
Disposal of subsidiary		—			—			(3,658	)

Fair value of plan assets at end of year		5,114			5,410			1,487

Funded status recognized as an other liabilities		(17	)		(428	)		(267	)

Amounts Recognized in Accumulated Other Comprehensive Income

Amounts recognized in accumulated other comprehensive income consist of the following:


	Year Ended December 31
	2017		2018		2019
	US$		US$		US$
Net loss		678		678		693

Total recognized in accumulated other comprehensive income		678		678		693

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost are as follows:


	Year Ended December 31
	2017			2018			2019
	US$			US$			US$
Service cost		1,572			568			275
Interest cost		336			126			91
Projected return on plan assets		(58	)		(78	)		(77	)
Amortization of unrecognized net transition obligation and unrecognized net actuarial gain		37			41			48

Net periodic benefit cost		1,887			657			337

Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Loss

Other changes in plan assets and benefit obligation recognized in other comprehensive loss:


	2017			2018		2019
	US$			US$		US$
Recognize the decrease in net gain (loss)		(285	)		—		15
Amortization of net loss		—			—		—

Total recognized in other comprehensive loss (income)		(285	)		—		15

Expected Benefit Payments

Expected benefit payments:


	US$
2020		7
2021		43
2022		50
2023		18
2024		77
2025 and thereafter		405

Actuarial Assumptions to Determine Benefit Obligations

The actuarial assumptions to determine the benefit obligations were as follows:


	2017						2018						2019
	Taiwan			Korea			Taiwan			Korea			Taiwan
Weighted-average assumptions used to determine benefit obligations:
Discount rate		1.63	%		4.10	%		1.38	%		3.60	%		1.00	%
Rate of compensation increase		4.25	%		3.50	%		4.25	%		3.00	%		4.00	%
Weighted-average assumptions used to determine net projected benefit cost:
Discount rate		1.63	%		4.10	%		1.38	%		3.60	%		1.00	%
Expected long-term return on plan assets		1.75	%		1.10	%		1.75	%		1.40	%		2.00	%
Rate of compensation increase		4.25	%		3.50	%		4.25	%		3.00	%		4.00	%

Fair Values of FCI's Pension Plan Assets

The fair values of FCI’s pension plan assets at

December 31, 2018

are as follows:


	December 31
	2018
	US$
Guaranteed interest contract
Kyobo Life Insurance Co. Ltd.		1,605
Shinhan Investment Co.		466
Fixed deposit
Industrial Bank of Korea		2,014

		4,085

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense are as follows:


	Year Ended December 31
	2017		2018			2019
	US$		US$			US$
Current		23,465		13,455			6,558
Deferred		581		(1,664	)		1,118

Income tax expense		24,046		11,791			7,676

Income (Loss) Before Income Taxes for Domestic and Foreign Entities

The income (loss) before income taxes for domestic and foreign entities is as follows:


	Year Ended December 31
	2017			2018			2019
	US$			US$			US$
Domestic		(27,902	)		(23,750	)		(3,911	)
Foreign		126,903			133,611			75,985

		99,001			109,861			72,074

Reconciliation of Income Tax Expense on Pretax Income at Statutory Rate and Income Tax Expense

The Company and its subsidiaries file separate income tax returns. A reconciliation of income tax expense on pretax income at statutory rate and income tax expense is shown below:


	Year Ended December 31
	2017			2018			2019
	US$			US$			US$
Tax expense at statutory rate of Cayman		—			—			—
Differences between Cayman and foreign statutory tax rates		24,255			12,509			846
Permanent differences		(4,249	)		(703	)		4,109
Temporary differences		(1,445	)		(159	)		638
Alternative minimum tax		4			9			1
Income tax on undistributed earnings		2,709			408			575
Net changes in income tax credit		166			116			3,917
Net changes in valuation allowance of deferred income tax assets		(2,401	)		1,243			(1,820	)
Net operating loss carryforwards		1,492			(1,431	)		(294	)
Liabilities related to unrealized tax benefits		3,455			(302	)		(171	)
Adjustment of prior years’ taxes and others		60			101			(125	)

Income tax expense		24,046			11,791			7,676

Deferred Income Tax Assets (Liabilities)

Deferred income tax assets (liabilities) are as follows:


	December 31
	2018			2019
	US$			US$
Notes and accounts receivable		47			3
Stock-based compensation		2,103			1,104
Allowance for sales return		210			541
Inventory reserve		1,283			1,733
Foreign currency translation		(8	)		(20	)
Property and equipment		(52	)		(359	)
Investment tax credits		8,684			4,532
Net operating loss carryforwards		11,895			14,028
Others		945			494
Valuation allowance		(20,041	)		(18,108	)

		5,066			3,948

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows:


	Year Ended December 31
	2017			2018			2019
	US$			US$			US$
Balance, beginning of year		10,286			15,056			18,707
Increases in tax positions taken in current year		6,647			5,937			6,890
Decrease in tax position taken in prior year primarily related to the resolution of tax audit		(1,877	)		(2,286	)		(4,942	)

Balance, end of year		15,056			18,707			20,655

Summary of Major Jurisdictions and Tax Year Subject to Examination by Tax Authorities

The following table summarizes the Company’s major jurisdictions and tax year that remain subject to examination by tax authorities as of December 31, 2019:


Tax Jurisdiction	Tax Years
China		2016 and onward
Hong Kong		2016 and onward
Taiwan		2014 and onward
United States		2014 onward

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2019

Federal Home Loan Banks [Abstract]

Cash Dividends Declared Per Ordinary Share

The Company declared cash dividends per ordinary share during the periods presented as follows:


	2017				2018				2019
	Dividends Per Share (US$)		Amount (in US$ thousand)		Dividends Per Share (US$)		Amount (in US$ thousand)		Dividends Per Share (US$)		Amount (in US$ thousand)
First quarter	$	0.050	$	7,134	$	0.075	$	10,832	$	0.075	$	10,956
Second quarter	$	0.050		7,148	$	0.075		10,835	$	0.075		10,957
Third quarter	$	0.050		7,155	$	0.075		10,843	$	0.075		10,029
Fourth quarter	$	0.075		10,737	$	0.075		10,849	$	0.0875		12,171

			$	32,174			$	43,359			$	44,113

Equity Incentive Plan (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Summary of Stock Option and Restricted Stock Units Activity

The following is a summary of, the 2005 Plan and the 2015 Plan, which includes stock options and restricted stock units:


	Unit (in Thousands)
Available for grant at January 1, 2017		18,751
Restricted stock units granted		(1,391	)
Restricted stock units forfeited		27

Available for grant at December 31, 2017		17,387
Restricted stock units granted		(1,622	)
Restricted stock units forfeited		22

Available for grant at December 31, 2018		15,787
Restricted stock units granted		(1,584	)
Restricted stock units forfeited		57

Available for grant at December 31, 2019		14,260

Summary of Stock Option Activity

A summary of the stock option activity and related information is as follows:


	Number of Options Shares (in Thousands)			Weighted Average Exercise Price (US$)		Weighted Average Remaining Contractual Life (Years)
Outstanding at January 1, 201 7		258			1.47		0.25
Options exercised		(258	)		1.47

Outstanding at December 31, 2017		—			—		—

Summary of Restricted Stock Units and Changes

A summary of the status of restricted stock units and changes is as follows:


	Number of Non-vested Stock Units (in Thousands)			Weighted Average Grant Date Fair Value (US$)		Weight Average Remaining Recognition Period (Years)
Non-vested at January 1, 2017		1,767			11.65		0.47
Restricted stock units granted		1,391			10.75
Restricted stock units vested		(1,593	)		12.08
Restricted stock units forfeited		(27	)		10.69

Non-vested at December 31, 2017		1,538			10.36		0.33
Restricted stock units granted		1,622			13.86
Restricted stock units vested		(1,517	)		9.79
Restricted stock units forfeited		(22	)		11.75

Non-vested at December 31, 2018		1,621			13.85		0.38
Restricted stock units granted		1,584			8.01
Restricted stock units vested		(1,505	)		14.12
Restricted stock units forfeited		(57	)		9.59

Non-vested at December 31, 2019		1,643			8.08		0.29

Stock-based Compensation Expense

The following table shows total stock-based compensation expense included in the Consolidated Statements of Income for the years ended December 31, 2017, 2018 and 2019.


	Year Ended December 31
	2017		2018		2019
	US$		US$		US$
Cost of sales		293		390		305
Research and development		9,255		13,278		9,927
Sales and marketing		3,167		3,407		1,789
General and administrative		2,779		3,704		2,570

		15,494		20,779		14,591

Lease - (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Summary of minimum lease payments under the operating lease

Future minimum lease payments under the operating leases as of December 31, 2019, were as follows:


	Operating Lease Obligations
Fiscal Year:
2020	$	3,321
2021		2,652
2022		1,458
2023		1,087
2024		732
2025 and thereafter		51

Total		9,301
Less imputed interest		634

Present value of net future minimum lease payments		8,667
Less operating lease liabilities-current		3,046

Long-term operating lease liabilities	$	5,621

Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Revenue by Product Category

The Company groups its products into three categories, based on the markets in which they may be used. The following summarizes the Company’s revenue by product category:


	Year Ended December 31
	2017		2018		2019
	US$		US$		US$
Mobile Storage		480,735		494,012		441,700
Mobile Communications		37,447		30,163		10,356
Others		5,222		6,173		5,197

		523,404		530,348		457,253

Revenue by Geographic Area

Revenue is attributed to a geographic area based on the

bill-to

location. The following summarizes the Company’s revenue by geographic area:


	Year Ended December 31
	2017 (1)		2018 (1)		2019
	US$		US$		US$
Taiwan		72,768		70,984		77,117
United States		40,344		53,476		63,432
Korea		176,813		135,845		52,885
China		126,048		142,948		123,261
Malaysia		49,919		49,444		50,663
Singapore		25,057		35,387		45,032
Others		32,455		42,264		44,863

		523,404		530,348		457,253

(1)	The figure represents the revenue by geographic area based on the bill-to location. Commencing in 2019, revenue derived from Japan was reclassified to others. The above breakdown for 2017 and 2018 has been reclassified on the same basis.

Major customers representing at least 10% of net sales


	Year Ended December 31
	2017				2018				2019
	US$		%		US$		%		US$		%
Intel		50,205		10		67,791		13		75,608		16
Micron		*		*		*		*		67,682		15
SK Hynix		150,762		29		111,265		21		*		*

*	Less than 10%

Long-Lived Assets (Property and Equipment, Net) by Geographic Area

Long-lived assets (property and equipment, net) by geographic area were as follows:


	Year Ended December 31
	2017		2018		2019
	US$		US$		US$
Taiwan		36,369		96,920		94,996
United States		242		348		315
Korea		1,936		1,645		23
China		12,798		2,447		3,117
Japan		25		50		37

		51,370		101,410		98,488

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on Recurring Basis

For the years ended December 31, 2018 and 2019, none of the Company’s assets measured on a recurring basis was determined by using significant unobservable inputs.

The following table presents our assets measured at fair value on a recurring basis as of December 31, 2018 and 2019:

December 31, 2018

Level 1

Level 2

Level 3

Total

US$

Assets

Short-term investments — trading securities

—

3,609

—

3,609

December 31, 2019

Level 1

Level 2

Level 3

Total

US$

Assets

Short-term investments — trading securities

—

2,010

—

2,010

Organization and Operations - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019 Product
Minimum
Organization and Operations [Line Items]
Number of product shipped in last ten years	6,000,000,000

Summary of Significant Accounting Policies - Additional Information (Detail) shares in Thousands, $ in Thousands		12 Months Ended
	May 31, 2019 USD ($)	Dec. 31, 2019 USD ($) Customer shares	Dec. 31, 2018 USD ($) Customer shares	Dec. 31, 2017 USD ($) Customer shares	Jan. 01, 2019 USD ($)
Significant Accounting Policies [Line Items]
Subsidiary ownership percentage		100.00%
Number of customers accounted for 10% or more sales \| Customer		2	2	2
Depreciation and amortization of property & equipment		$ 12,447	$ 11,832	$ 10,599
Warranty period for manufacturing defects of products		1 year
Evaluation of tax benefits realized upon settlement		50.00%
Operating lease right of use assets		$ 8,603
Gain loss on disposal of subsidary		12,409
Operating lease liabilities accrued current		3,046
Operating lease liabilitites long term		5,621
Dialogue Semiconductor PLC [Member] \| FCI
Significant Accounting Policies [Line Items]
Disposal group discontinued operation consideration receivable	$ 54,000
Gain loss on disposal of subsidary	12,409
Disposal group discontinued operations net asset value	$ 39,367
Restricted assets net		5,400
Escrow Deposit		$ 5,400
Minimum
Significant Accounting Policies [Line Items]
Short term investment maturity period		3 months
Maximum
Significant Accounting Policies [Line Items]
Short term investment maturity period		1 year
Held-to-maturity investment maturity period		1 year
Net sales \| Customers accounted for 10% or more \| Top Ten Customers [Member]
Significant Accounting Policies [Line Items]
Major customers percentage of net sales		74.00%	69.00%	72.00%
Net sales \| Customers accounted for 10% or more \| Two Customers [Member]
Significant Accounting Policies [Line Items]
Major customers percentage of net sales		31.00%	34.00%	39.00%
Accounting Standards Update 2016-02
Significant Accounting Policies [Line Items]
Operating lease right of use assets		$ 8,603			$ 7,202
Operating lease weighted average remaining lease term		3 years 6 months
Operating lease weighted average discount rate		3.78%
Accounting Standards Update 2016-02 \| Prepaid Use Rights [Member]
Significant Accounting Policies [Line Items]
Operating lease right of use assets					238
Accounting Standards Update 2016-02 \| Other Current Liabilities
Significant Accounting Policies [Line Items]
Operating lease liabilities accrued current		$ 3,046			1,428
Accounting Standards Update 2016-02 \| Other Noncurrent Liabilities
Significant Accounting Policies [Line Items]
Operating lease liabilitites long term		$ 5,621			$ 5,536
Employee Stock Option And Restricted Stock Units [Member]
Significant Accounting Policies [Line Items]
The effect of dilutive securities of employee stock options and restricted stock units \| shares		475	389	868
Employee Stock Option And Restricted Stock Units [Member] \| American Depositary Shares
Significant Accounting Policies [Line Items]
The effect of dilutive securities of employee stock options and restricted stock units \| shares		119	97	218
Development technology \| Minimum
Significant Accounting Policies [Line Items]
Intangible asset amortized over estimated useful lives		3 years 6 months
Development technology \| Maximum
Significant Accounting Policies [Line Items]
Intangible asset amortized over estimated useful lives		5 years 6 months
Software \| Minimum
Significant Accounting Policies [Line Items]
Property plant and equipment estimated useful life		1 year
Software \| Maximum
Significant Accounting Policies [Line Items]
Property plant and equipment estimated useful life		5 years
Buildings \| Minimum
Significant Accounting Policies [Line Items]
Property plant and equipment estimated useful life		25 years
Buildings \| Maximum
Significant Accounting Policies [Line Items]
Property plant and equipment estimated useful life		50 years
Machinery and Equipment \| Minimum
Significant Accounting Policies [Line Items]
Property plant and equipment estimated useful life		3 years
Machinery and Equipment \| Maximum
Significant Accounting Policies [Line Items]
Property plant and equipment estimated useful life		6 years
Furniture and Fixtures \| Minimum
Significant Accounting Policies [Line Items]
Property plant and equipment estimated useful life		3 years
Furniture and Fixtures \| Maximum
Significant Accounting Policies [Line Items]
Property plant and equipment estimated useful life		8 years
Leasehold And Building Improvement \| Minimum
Significant Accounting Policies [Line Items]
Property plant and equipment estimated useful life		2 years
Leasehold And Building Improvement \| Maximum
Significant Accounting Policies [Line Items]
Property plant and equipment estimated useful life		6 years

Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets and Liabilities Eliminated upon Consolidation [Abstract]
Beginning balance, Foreign currency items	$ 1,173	$ 3,321	$ (69)
Current-period change, Foreign currency items	(1,265)	(2,148)	3,390
Ending balance, Foreign currency items	(92)	1,173	3,321
Beginning balance, Defined benefit pension plans	(678)	(678)	(963)
Current-period change, Defined benefit pension plans	(15)		285
Ending balance, Defined benefit pension plans	(693)	(678)	(678)
Beginning balance, Accumulated other comprehensive income (loss)	495	2,643	(1,032)
Current-period change, Accumulated other comprehensive income (loss)	(1,280)	(2,148)	3,675
Ending balance, Accumulated other comprehensive income (loss)	$ (785)	$ 495	$ 2,643

- Definition

Accumulated adjustment, net of tax, that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency from the functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains or losses.

+ References + Details

Details of Cash, Cash Equivalents, and Restricted Cash (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash and Cash Equivalents [Abstract]
Cash and deposits in bank	$ 61,184	$ 54,918
Time deposits	229,419	220,047
Bonds acquired under repurchase agreements	32,563	10,024
Total cash and cash equivalents	323,166	284,989
Restricted cash	25,087	22,138
Total cash ,cash equivalents, and restricted cash	$ 348,253	$ 307,127	$ 381,523	$ 321,177

Short Term Investments (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Trading securities	$ 2,010	$ 3,609

Short Term Investments - Additional Information (Detail) - Trading Securities - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Gain (Loss) on Securities [Line Items]
Realized gains on sales of short-term investments, trading securities	$ 48,000	$ 134,000	$ 103,000
Unrealized holding loss on short-term investment	$ 0	$ 0	$ 0

Summary of Notes and Accounts Receivable (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Trade accounts receivable	$ 110,351	$ 92,408
Allowance for doubtful accounts	(1,617)	(645)	$ (598)	$ (723)
Notes and accounts receivable, net	$ 108,734	$ 91,763

Change In Allowances (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Allowances for doubtful accounts

Balance, beginning of year

$ 645

$ 598

$ 723

Additions (reversals) charged to expense, net

1,164

(125)

Write-offs

(192)

Balance, end of year

$ 1,617

645

598

Balance, beginning of year

^[1]

$ 1,432

1,624

Additions charged to expense, net

^[1]

3,093

Actual sales return and discount

^[1]

(3,285)

Balance, end of year

^[1]

$ 1,432

[1]	As of January 1, 2018, the Company has adopted the new revenue recognition standard (ASC 606). Allowance for sales returns and discounts for the year ended December 31, 2018 has been adjusted to reflect these changes in accounting policies, see Note 2 summary of significant accounting policies.

Components of Inventories (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 26,305	$ 26,059
Work in process	37,342	30,830
Raw materials	24,792	24,629
Inventory, Net	$ 88,439	$ 81,518

Inventories - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventory written down	$ 9,085	$ 2,095	$ 698

Long-Term Investments - Equity Investments with Carrying Value (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Schedule of Equity and Cost Investments [Line Items]
Long-term investments	$ 3,000	$ 4,242
Cashido Corp. (Cashido)
Schedule of Equity and Cost Investments [Line Items]
Equity Investments Percentage of Ownership	0.60%	1.80%
Vastview Technology, Corp. (Vastview)
Schedule of Equity and Cost Investments [Line Items]
Equity Investments Percentage of Ownership	2.90%	2.90%
Deep Vision, Inc (Deep Vision)
Schedule of Equity and Cost Investments [Line Items]
Long-term investments	$ 3,000	$ 3,000
Equity Investments Percentage of Ownership	14.80%	14.80%
ProGrade Digital, Inc. (ProGrade)
Schedule of Equity and Cost Investments [Line Items]
Long-term investments		$ 1,242
Equity Investments Percentage of Ownership		49.00%

Long-term Investment - Additional Information (Detail) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended	12 Months Ended				36 Months Ended
	May 31, 2019	Jun. 30, 2018	May 31, 2018	Feb. 28, 2007	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2013	Dec. 31, 2009	Dec. 31, 2010
Schedule of Equity and Cost Investments [Line Items]
Invested in common stock					$ 4,715
Gain loss on disposal of equity method investments					$ (473)
Vastview Technology, Corp. (Vastview)
Schedule of Equity and Cost Investments [Line Items]
Invested in common stock				$ 3,360
Cost method investment capital return							$ 46	$ 808
Recognized an impairment charges						$ 29			$ 2,462
Cashido Corp. (Cashido)
Schedule of Equity and Cost Investments [Line Items]
Cost method investment impairments other than temporary						$ 91
ProGrade Digital, Inc. (ProGrade)
Schedule of Equity and Cost Investments [Line Items]
Proceeds from disposal of equity method investments	$ 1,715
Gain loss on disposal of equity method investments	$ 473
ProGrade Digital, Inc. (ProGrade) \| Preferred Stock
Schedule of Equity and Cost Investments [Line Items]
Invested in common stock			$ 1,715
Deep Vision, Inc (Deep Vision)
Schedule of Equity and Cost Investments [Line Items]
Invested in common stock		$ 3,000

Summary of Noncurrent Assets Held for Sale (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale	$ 10,405	$ 10,576
Disposal Group, Held-for-sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale	$ 10,405	$ 10,576

Noncurrent Assets Held For Sale - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
Restructuring and Related Activities [Abstract]
Gain from disposal of noncurrent assets held for sale	$ 1,880

Property and Equipment (Detail) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Land	$ 68,243	$ 68,243
Buildings	18,130	18,130
Machinery and equipment	26,426	26,902
Furniture and fixtures	6,919	8,538
Leasehold and buildings improvement	7,964	7,661
Software	25,938	23,971
Total	153,620	153,445
Accumulated Depreciation	55,318	52,234
Prepayment and construction in progress	186	199
Property, Plant and Equipment, Net	98,488	101,410	$ 51,370
Software
Property, Plant and Equipment [Line Items]
Accumulated Depreciation	22,312	19,269
Buildings
Property, Plant and Equipment [Line Items]
Accumulated Depreciation	3,632	3,231
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Accumulated Depreciation	18,828	19,005
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Accumulated Depreciation	5,196	5,808
Leasehold and buildings improvement
Property, Plant and Equipment [Line Items]
Accumulated Depreciation	$ 5,350	$ 4,921

Property And Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Property, Plant and Equipment [Line Items]
Net carrying value of leased properties	$ 673	$ 691
Annual lease and rental income from operating lease	42
Property, Plant and Equipment [Member]
Property, Plant and Equipment [Line Items]
Increase (decrease) in accrued expenses and other current liabilities arising from the purchase of property, plant and equipment	$ (707)	$ (1,631)	$ 1,474
Land \| Taiwan
Property, Plant and Equipment [Line Items]
Total consideration				$ 58,931

Cumulative Value of Intangible Assets Related to Acquisition (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Liabilities [Line Items]
Accumulated Impairment	$ (255)	$ (3,444)
FCI, Centronix, BTL, Shannon and Bigtera
Finite-Lived Intangible Liabilities [Line Items]
Cost	13,117	13,117
Accumulated Impairment	(3,699)	(3,444)
Accumulated Amortization	$ (9,418)	(8,652)
Net Carrying Amount		$ 1,021

Goodwill And Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended			60 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2011	Jul. 03, 2017	Jul. 01, 2015
Goodwill and Intangible Assets Disclosure [Line Items]
Accumulated Impairment	$ 255	$ 3,444
Amortization of intangible assets	766	2,964	$ 2,534
Goodwill	17,489	58,331
Goodwill impairment	$ 15,715	$ 625
FCI, Centronix and BTL
Goodwill and Intangible Assets Disclosure [Line Items]
Goodwill acquired during period				$ 66,300
Shannon Systems
Goodwill and Intangible Assets Disclosure [Line Items]
Goodwill						$ 33,204
Bigtera
Goodwill and Intangible Assets Disclosure [Line Items]
Goodwill					$ 625

Schedule of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
Schedule of Goodwill (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Cost	$ 100,129	$ 100,129
Disposal of FCI	(25,117)
Accumulated Impairment	(57,485)	(41,770)
Foreign Currency Adjustment	(38)	(28)
Net Carrying Amount	$ 17,489	$ 58,331

Short-Term Bank Loans - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Interest expense	$ 0	$ 355	$ 387
Pledged deposit		$ 0	$ 0
Minimum
Short-term Debt [Line Items]
Interest rate			1.51%
Maximum
Short-term Debt [Line Items]
Interest rate			2.95%

Refund Liabilities - Summary of Refund Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other Liabilities [Abstract]
Refund liabilities	$ 2,260	$ 2,093

Refund Liabilities - Summary of Change in Refund Liabilities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Other Liabilities [Abstract]
Balance, beginning of year	$ 2,093	$ 1,432
Additions	5,076	4,908
Actual sales return and discount	(4,909)	(4,247)
Balance, end of year	$ 2,260	$ 2,093

Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Wages and bonus	$ 26,643	$ 25,169
Dividends	36,919	32,871
Research and development payable	5,693	3,108
License fees and royalties	9,371	6,739
Professional fees	1,772	1,867
Equipment	557	1,264
Lease liabilities	3,046
Others	12,075	8,401
Accrued expenses and other current liabilities	$ 96,076	$ 79,419

Pension Plan - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Accumulated benefit obligation	$ 939	$ 3,864	$ 3,210
Estimated amortization of net gain from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year	35
SMI Taiwan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Contributions and Recognized Pension Costs under Labor Pension Act	$ 1,783	$ 1,682	$ 1,579
Contributions Based on Percentage Employee Salaries under Labor Standards Law	2.00%
The contribution under defined benefit plans	$ 62
SMI Taiwan \| Minimum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Percentage of Contribution by an Employer to Employees Pension	6.00%

Changes in Benefits Obligation and Plan Assets and Reconciliation of Funded Status (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Change in benefit obligation
Projected benefit obligation at beginning of year	$ 5,838	$ 5,131	$ 4,242
Service cost	275	568	1,572
Interest cost	91	126	336
Actuarial loss (gain)	72	146	(665)
Benefits paid	(450)	(133)	(354)
Disposal of Subsidiary	(4,072)
Projected benefit obligation at end of year	1,754	5,838	5,131
Change in plan assets
Fair value of plan assets at beginning of year	5,410	5,114	3,902
Actual return on plan assets	98	63	81
Employer contributions	85	331	1,358
Benefits paid	(448)	(98)	(227)
Disposal Of Subsidiary	(3,658)
Fair value of plan assets at end of year	1,487	5,410	5,114
Funded status recognized as an other liabilities	$ (267)	$ (428)	$ (17)

Amounts Recognized in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Net loss	$ 693	$ 678	$ 678
Total recognized in accumulated other comprehensive income	$ 693	$ 678	$ 678	$ 963

Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net Periodic Benefit Cost:
Service cost	$ 275	$ 568	$ 1,572
Interest cost	91	126	336
Projected return on plan assets	(77)	(78)	(58)
Amortization of unrecognized net transition obligation and unrecognized net actuarial gain	48	41	37
Net periodic benefit cost	$ 337	$ 657	$ 1,887

Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income (Loss):
Recognize the decrease in net gain (loss)	$ 15		$ (285)
Amortization of net loss
Total recognized in other comprehensive loss (income)	$ 15		$ (285)

Expected Benefit Payments (Detail) $ in Thousands	Dec. 31, 2019 USD ($)
Retirement Benefits [Abstract]
2020	$ 7
2021	43
2022	50
2023	18
2024	77
2025 and thereafter	$ 405

Actuarial Assumptions to Determine Benefit Obligations (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
SMI Taiwan
Weighted-average assumptions used to determine benefit obligations:
Discount rate	1.00%	1.38%	1.63%
Rate of compensation increase	4.00%	4.25%	4.25%
Weighted-average assumptions used to determine net projected benefit cost:
Discount rate	1.00%	1.38%	1.63%
Expected long-term return on plan assets	2.00%	1.75%	1.75%
Rate of compensation increase	4.00%	4.25%	4.25%
Korea
Weighted-average assumptions used to determine benefit obligations:
Discount rate		3.60%	4.10%
Rate of compensation increase		3.00%	3.50%
Weighted-average assumptions used to determine net projected benefit cost:
Discount rate		3.60%	4.10%
Expected long-term return on plan assets		1.40%	1.10%
Rate of compensation increase		3.00%	3.50%

Fair Values Of FCI's Pension Plan Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Schedule Of Defined Benefit Plans Disclosures [Line Items]
Fair value of pension plan assets	$ 1,487	$ 5,410	$ 5,114	$ 3,902
FCI
Schedule Of Defined Benefit Plans Disclosures [Line Items]
Fair value of pension plan assets		4,085
FCI \| Guaranteed Interest Contract \| Kyobo Life Insurance Co. Ltd.
Schedule Of Defined Benefit Plans Disclosures [Line Items]
Fair value of pension plan assets		1,605
FCI \| Guaranteed Interest Contract \| Shinhan Investment Co.
Schedule Of Defined Benefit Plans Disclosures [Line Items]
Fair value of pension plan assets		466
FCI \| Fixed Deposit \| Industrial Bank of Korea
Schedule Of Defined Benefit Plans Disclosures [Line Items]
Fair value of pension plan assets		$ 2,014

Components of Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Current	$ 6,558	$ 13,455	$ 23,465
Deferred	1,118	(1,664)	581
Income tax expense	$ 7,676	$ 11,791	$ 24,046

Income (loss) Before Income Taxes for Domestic and Foreign Entities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income (loss) before income taxes, domestic	$ (3,911)	$ (23,750)	$ (27,902)
Income (loss) before income taxes, foreign	75,985	133,611	126,903
INCOME BEFORE INCOME TAX	$ 72,074	$ 109,861	$ 99,001

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Tax Credit Carryforward [Line Items]
Corporate income tax rate			17.00%
Change in valuation allowance	$ (1,933)	$ 969
Rate of corporate surtax, unappropriated earnings			10.00%
Accumulated undistributed earnings from a foreign subsidiary	345,000
Deferred tax liability on undistributed foreign earnings	0
Unrecognized tax benefit	20,655	18,707	$ 15,056	$ 10,286
Total amount of interest expense and penalties	319	776	$ 617
Total amount of accrued interest and penalties	$ 4,511	$ 4,091
Cayman Islands Tax Information Authority [Member]
Tax Credit Carryforward [Line Items]
Corporate income tax rate	0.00%	0.00%	0.00%
Scenario, Plan
Tax Credit Carryforward [Line Items]
Corporate income tax rate		20.00%
Rate of corporate surtax, unappropriated earnings		5.00%
Foreign Tax Authority \| Internal Revenue Service (IRS) [Member]
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards for income tax purposes		$ 9,475
Federal net operating loss carryforwards expiration year		2039
Foreign Tax Authority \| Research And Development \| Internal Revenue Service (IRS) [Member]
Tax Credit Carryforward [Line Items]
Deferred tax assets tax credit carryforwards		$ 2,659
Tax credit carryforward expiration year for federal		2039
State and Local Jurisdiction [Member] \| Research And Development
Tax Credit Carryforward [Line Items]
Deferred tax assets tax credit carryforwards		$ 1,873
Tax credit carryforward expiration year for state		no expiration date

Reconciliation of Income Tax Expense on Pretax Income at Statutory Rate and Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation Of Income Taxes [Line Items]
Differences between Cayman and foreign statutory tax rates	$ 846	$ 12,509	$ 24,255
Permanent differences	4,109	(703)	(4,249)
Temporary differences	638	(159)	(1,445)
Alternative minimum tax	1	9	4
Income tax on undistributed earnings	575	408	2,709
Net changes in income tax credit	3,917	116	166
Net changes in valuation allowance of deferred income tax assets	(1,820)	1,243	(2,401)
Net operating loss carryforwards	(294)	(1,431)	1,492
Liabilities related to unrealized tax benefits	(171)	(302)	3,455
Adjustment of prior years' taxes and others	(125)	101	60
Income tax expense	7,676	11,791	24,046
Cayman Islands Tax Information Authority [Member]
Reconciliation Of Income Taxes [Line Items]
Tax expense at statutory rate

Deferred Income Tax Assets (liabilities) (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Notes and accounts receivable	$ 3	$ 47
Stock-based compensation	1,104	2,103
Allowance for sales return	541	210
Inventory reserve	1,733	1,283
Foreign currency translation	(20)	(8)
Property and equipment	(359)	(52)
Investment tax credits	4,532	8,684
Net operating loss carryforwards	14,028	11,895
Others	494	945
Valuation allowance	(18,108)	(20,041)
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	$ 3,948	$ 5,066

Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Balance, beginning of year	$ 18,707	$ 15,056	$ 10,286
Increases in tax positions taken in current year	6,890	5,937	6,647
Decrease in tax position taken in prior year primarily related to the resolution of tax audit	(4,942)	(2,286)	(1,877)
Balance, end of year	$ 20,655	$ 18,707	$ 15,056

Summary of Major Jurisdictions and Tax Year Subject to Examination Tax Authorities (Detail)	12 Months Ended
	Dec. 31, 2019
China
Income Tax Examination [Line Items]
Years Subject to Income Tax Examination	2016 and onward
HONG KONG
Income Tax Examination [Line Items]
Years Subject to Income Tax Examination	2016 and onward
Taiwan
Income Tax Examination [Line Items]
Years Subject to Income Tax Examination	2014 and onward
United States
Income Tax Examination [Line Items]
Years Subject to Income Tax Examination	2014 onward

Cash Dividends Declared Per Ordinary Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Dividends [Abstract]
Dividend Per Share	$ 0.0875	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.050	$ 0.050	$ 0.050	$ 0.35	$ 0.30	$ 0.30
Amount	$ 12,171	$ 10,029	$ 10,957	$ 10,956	$ 10,849	$ 10,843	$ 10,835	$ 10,832	$ 10,737	$ 7,155	$ 7,148	$ 7,134	$ 44,113	$ 43,359	$ 32,174

Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands					3 Months Ended												12 Months Ended
	Oct. 25, 2019	Oct. 29, 2018	Oct. 24, 2017	Nov. 02, 2015	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Nov. 21, 2018
Retained Earnings Adjustments [Line Items]
Dividend declared					$ 0.0875	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.075	$ 0.050	$ 0.050	$ 0.050	$ 0.35	$ 0.30	$ 0.30
Increase decrease in dividends payable																	$ 4,048	$ 420	$ 11,069
Annual Dividend [Member]
Retained Earnings Adjustments [Line Items]
Dividend declared	$ 1.40	$ 1.20	$ 1.20	$ 0.60
Quarterly Dividend [Member]
Retained Earnings Adjustments [Line Items]
Dividend declared	$ 0.35	$ 0.30	$ 0.30	$ 0.15
American Depositary Shares
Retained Earnings Adjustments [Line Items]
ADSs repurchased during period, shares																	762	1,006
ADSs repurchased during period, cost																	$ 25,103	$ 34,755
Average purchase price per ADS																	$ 32.82	$ 34.54
American Depositary Shares \| Maximum
Retained Earnings Adjustments [Line Items]
Repurchase of shares																				$ 200,000

Equity Incentive Plan - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Apr. 30, 2010	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2009	Dec. 31, 2006	Jun. 03, 2015	Apr. 22, 2005
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option exchange for new stock option granted	4,369,000
Stock options exercise price	$ 1.47
Eligible stock options exchanged for new stock options granted	3,785,000
Stock Option Granted		0	0	0
Stock Option Granted Intrinsic Value		$ 0	$ 0	$ 3,040,000
Total unrecognized compensation cost related to non-vested share-based compensation		0
Cash received from employee toward stock option exercise		0	0	380,000
Tax effect for stock-based compensation benefit (expense) for option and restricted stock units exercised		(49,000)	177,000	124,000
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option granted exercise price	$ 1.85
Employee Stock Options And Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Tax effect for stock-based compensation benefit (expense) for option and restricted stock units exercised		$ 3,446,000	$ 2,211,000	$ 2,273,000
2005 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ordinary shares authorized								10,000,000
Additional ordinary shares authorized					15,000,000	15,000,000
2005 Equity Incentive Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion ratio of restricted stock unit to ordinary shares		one-for-one
2015 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ordinary shares authorized							20,000,000
The 2005 Plan and The 2015 Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost related to non-vested share-based compensation		$ 3,665,000

Summary of Stock Option and Restricted Stock Units Activity (Detail) - The 2005 Plan and The 2015 Plan - Employee Stock Options And Restricted Stock Units [Member] - shares shares in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Available for grant at beginning date	15,787	17,387	18,751
Restricted stock units granted	(1,584)	(1,622)	(1,391)
Restricted stock units forfeited	57	22	27
Available for grant at ending balance	14,260	15,787	17,387

Summary of Stock Option Activity and Related Information (Detail) shares in Thousands	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Number of Options Shares
Outstanding at beginning period \| shares	258
Options exercised \| shares	(258)
Outstanding at ending period \| shares
Weighted Average Exercise Price
Outstanding at beginning period \| $ / shares	$ 1.47
Options exercised \| $ / shares	1.47
Outstanding at ending period \| $ / shares
Outstanding at ending period	3 months

Summary of Status of Restricted Stock Units and Changes (Detail) - Restricted Stock Units - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Number of Nonvested Stock Units
Nonvested at beginning period	1,621	1,538	1,767
Restricted stock units granted	1,584	1,622	1,391
Restricted stock units vested	(1,505)	(1,517)	(1,593)
Restricted stock units forfeited	(57)	(22)	(27)
Nonvested at ending period	1,643	1,621	1,538	1,767
Weighted Average Grant Date Fair Value
Nonvested at beginning period	$ 13.85	$ 10.36	$ 11.65
Restricted stock units granted	8.01	13.86	10.75
Restricted stock units vested	14.12	9.79	12.08
Restricted stock units forfeited	9.59	11.75	10.69
Nonvested at ending period	$ 8.08	$ 13.85	$ 10.36	$ 11.65
Weighted Average Remaining Recognition Period (Years)
Nonvested at ending period	3 months 14 days	4 months 17 days	3 months 29 days	5 months 19 days

Table of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 14,591	$ 20,779	$ 15,494
Cost of Sales
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	305	390	293
Research and Development Expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	9,927	13,278	9,255
Selling and Marketing Expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	1,789	3,407	3,167
General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 2,570	$ 3,704	$ 2,779

Lease - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Leases [Abstract]
Lease Expense	$ 4,775	$ 3,933	$ 3,131
Operating Lease Payments	$ 3,233

Lease - Schedule Of Future Minimum Rental Payments For Operating Leases (Detail) $ in Thousands	Dec. 31, 2019 USD ($)
Leases [Abstract]
2020	$ 3,321
2021	2,652
2022	1,458
2023	1,087
2024	732
2025 and Thereafter	51
Total	9,301
Less imputed interest	634
Present value of net future minimum lease payments	8,667
Less operating lease liabilities-current	3,046
Long-term operating lease liabilities	$ 5,621

Commitments And Contingencies - Additional Information (Detail) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
	Apr. 17, 2009	Mar. 31, 2010	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Apr. 25, 2007
Commitments and Contingencies Disclosure [Line Items]
Restricted cash deposited				$ 25,087	$ 22,138
Unpaid accounts receivable from distributor, filed for Chapter 11 bankruptcy protection				$ 110,351	92,408
Adversary proceeding pending on litigation filled by AASI creditor liquidating trust	$ 854
Litigation settlement expenses		$ 220
FCI
Commitments and Contingencies Disclosure [Line Items]
Restricted cash deposited					$ 448
All American
Commitments and Contingencies Disclosure [Line Items]
Unpaid accounts receivable from distributor, filed for Chapter 11 bankruptcy protection						$ 256
Distribution claim received as beneficiary			$ 265

Segment Information - Additional Information (Detail)	12 Months Ended
Segment Information - Additional Information (Detail)	Dec. 31, 2019 Segment
Segment Reporting [Abstract]
Reportable segment	1

Revenue by Product Category (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

$ 457,253

$ 530,348

^[1]

$ 523,404

^[1]

Mobile Storage

441,700

494,012

480,735

Mobile Communications

10,356

30,163

37,447

Others

Revenues from External Customers and Long-Lived Assets [Line Items]

$ 5,197

$ 6,173

$ 5,222

[1]	The figure represents the revenue by geographic area based on the bill-to location. Commencing in 2019, revenue derived from Japan was reclassified to others. The above breakdown for 2017 and 2018 has been reclassified on the same basis.

Revenue by Geographic Area (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

^[1]

Dec. 31, 2017

^[1]

Revenues from External Customers and Long-Lived Assets [Line Items]

$ 457,253

$ 530,348

$ 523,404

Taiwan

Revenues from External Customers and Long-Lived Assets [Line Items]

77,117

70,984

72,768

United States

Revenues from External Customers and Long-Lived Assets [Line Items]

63,432

53,476

40,344

Korea

Revenues from External Customers and Long-Lived Assets [Line Items]

52,885

135,845

176,813

China

Revenues from External Customers and Long-Lived Assets [Line Items]

123,261

142,948

126,048

Malaysia

Revenues from External Customers and Long-Lived Assets [Line Items]

50,663

49,444

49,919

Singapore

Revenues from External Customers and Long-Lived Assets [Line Items]

45,032

35,387

25,057

Others

$ 44,863

$ 42,264

$ 32,455

[1]	The figure represents the revenue by geographic area based on the bill-to location. Commencing in 2019, revenue derived from Japan was reclassified to others. The above breakdown for 2017 and 2018 has been reclassified on the same basis.

Major customers representing at least 10% of net sales (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Net sales | Customers accounted for 10% or more | Intel

$ 457,253

$ 530,348

^[1]

$ 523,404

^[1]

Major customers, percentage of net sales

$ 75,608

$ 67,791

$ 50,205

16.00%

13.00%

10.00%

Net sales | Customers accounted for 10% or more | Micron

Major customers, percentage of net sales

$ 67,682

15.00%

Net sales | Customers accounted for 10% or more | SK Hynix