Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure Of Income Tax Explanatory [Abstract]

Disclosure Of Income Tax Expense Benefit Recognized in Profit or Loss [Table Text Block]

Income tax expense (benefit) recognized in profit or loss for the years ended December 31, 2017 and 2018 consists of the following:

	Year ended December 31,
	2017			2018
	(in thousands)
Current tax expense
Current period	$	6,852			5,878
Adjustment for prior periods		(686	)		(172	)
		6,166			5,706

Deferred tax expense
Origination and reversal of temporary differences		(955	)		1,012
Investment tax credits and operating loss carryforward		(657	)		(4,525	)
Effect of tax rate changes		-			(1,199	)
		(1,612	)		(4,712	)
Total income tax expense	$	4,554			994

Disclosure Of Detailed Information Of Income taxes expense benefit recognized directly in other comprehensive income [Table Text Block]

Income taxes expense (benefit) recognized directly in other comprehensive income for the years ended December

31, 2017 and 2018 consist of

the following:

	Year ended December 31,
	2017			2018
	(in thousands)
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit pension plans	$	(15	)		169

Disclosure Of Detailed Information About Income Tax Reconciliation [Table Text Block]

Reconciliation of the expected income tax expense computed based on the ROC statutory income tax rate of

% in 201

and

% in

2018

, compared with the actual income tax expense as reported in the consolidated statements of profit or loss for the years ended December 31,

2017

and

2018

are summarized as follows:

	Years ended December 31,
	2017						2018
	Rate			Amount			Rate			Amount
				(in thousands)						(in thousands)
Profit before income taxes				$	30,092						7,020
Income tax expense calculated at the statutory rate		17.0	%		5,116			20.0	%		1,404
Tax on undistributed earnings		(3.9	)%		(1,181	)		(10.8	)%		(755	)
Tax-exempt income		(1.8	)%		(548	)		(16.2	)%		(1,135	)
Tax benefit resulting from setting aside legal reserve from prior year’s income		(2.3	)%		(686	)		(0.8	)%		(56	)
Increase in tax credits		(13.1	)%		(3,926	)		(75.6	)%		(5,306	)
Effect of change of unrecognized deductible temporary differences, tax losses carryforwards, and investment tax credits		19.3	%		5,815			100.2	%		7,034
Net of non-taxable income and non-deductible expense		0.4	%		115			(2.1	)%		(151	)
Capital gain Tax		7.7	%		2,304			(1.6	)%		(116	)
Changes in unrecognized tax benefits related to prior year tax positions, net of its impact to tax-exempted income		(1.0	)%		(298	)		6.3	%		440
Foreign tax rate differential		(9.9	)%		(2,988	)		12.1	%		850
Variance from audits, amendments and examinations of prior years’ income tax filings		1.5	%		456			(0.8	)%		(58	)
Effect of tax rate changes		-			-			(17.1	)%		(1,199	)
Others		1.2	%		375			0.6	%		42
Income tax expense				$	4,554						994
Effective tax rate		15.1	%					14.2	%

Disclosure of deferred taxes [text block]

As of January 1, 2017, December 31, 2017 and 2018, the components of deferred tax assets and deferred tax liabilities were as follows:

	January 1, 2017			December 31, 2017			December 31, 2018
	(in thousands)
Deferred tax assets:
Inventory	$	5,190			4,581			5,996
Tax credit carryforwards		-			618			3,567
Allowance for sales discounts		434			575			685
Operating loss carryforward-statutory tax		551			590			2,166
Accrued compensated absences		221			446			553
Depreciation		348			367			481
Unrealized foreign exchange loss		-			-			8
Remeasurement of defined benefit plans		138			138			-
Others		374			398			448
	$	7,256			7,713			13,904

Deferred tax liabilities:
Unrealized foreign exchange gain	$	(1,132	)		(25	)		-
Acquired intangible assets		(104	)		(86	)		(1,645	)
Remeasurement of defined benefit plans		-			-			(114	)
Others		(45	)		-			-
	$	(1,281	)		(111	)		(1,759	)

Disclosure Of Detailed Information About Movement Of Deferred Tax Assets And Deferred Tax Liabilities [Table Text Block]

Changes in deferred tax assets and liabilities were as follows:

	January 1, 2017			Recognized in profit or loss			Recognized in other comprehensive income		December 31, 2017			Recognized in profit or loss			Recognized in other comprehensive income			December 31, 2018
	(in thousands)
Inventory	$	5,190			(609	)		-		4,581			1,415			-			5,996
Tax credit carryforwards		-			618			-		618			2,949			-			3,567
Allowance for sales discounts		434			141			-		575			110			-			685
Operating loss carryforward		551			39			-		590			1,576			-			2,166
Accrued compensated absences		221			225			-		446			107			-			553
Depreciation		348			19			-		367			114			-			481
Unrealized foreign exchange loss (gain)		(1,132	)		1,107			-		(25	)		33			-			8
Remeasurement of defined benefit plans		138			(15	)		15		138			(83	)		(169	)		(114	)
Acquired intangible assets		(104	)		18			-		(86	)		(1,559	)		-			(1,645	)
Others		329			69			-		398			50			-			448
Total	$	5,975			1,612			15		7,602			4,712			(169	)		12,145

Disclosure of temporary difference, unused tax losses and unused tax credits [text block]

Gross amount of deferred tax assets have not been recognized in respect of the following items.

	January 1, 2017		December 31, 2017		December 31, 2018
	(in thousands)
Unused tax credits	$	1,934		1,934		1,934
Unused operating loss carryforwards-statutory tax		186,741		216,108		222,240
Unused operating loss carryforwards-undistributed earnings tax		146,947		179,301		198,639
Others		15,464		13,988		21,665
	$	351,086		411,331		444,478

Disclosure of detailed information about unrecognized deferred tax assets of unused operating loss carry forwards [Table Text Block]

As of December 31, 2018, the expiration period for abovementioned unrecognized deferred tax assets of unused operating loss carryforwards for statutory tax were as follows:

	Deductible amount		Unrecognized deferred tax assets		Expiration year
	(in thousands)
Taiwan operations	$	95,334	$	19,067	2019~2023
		106,216		21,243	2024~2028
Hong Kong operations		1,810		149	Indefinitely
US operations		10,666		2,832	2025~2038
Israel operations		8,214		1,889	Indefinitely
			$	45,180