PRODUCT WARRANTY

12 Months Ended

Dec. 31, 2022

Product Warranties Disclosures [Abstract]

11. PRODUCT WARRANTY

Movement of product warranty was as follows:


	Year Ended December 31,
	2020		2021		2022
Balance at beginning of the year	$	18,416	$	19,356	$	58,458
Provided during the year	3,477		52,932		14,097
Utilized during the year	(2,537)		(13,830)		(26,916)
Exchange difference	$	—	$	—	$	(3,579)
Balance at end of the year	$	19,356	$	58,458	$	42,060
Product warranty – current	$	4,296	$	20,922	$	13,044
Product warranty – non-current	15,060		37,536		29,016

Warranty provisions are based upon historical experience. Changes in provisions related to pre-existing legacy products were made based on actual claims and intensive testing and analysis on the legacy products. In 2021, as a result of the increases in the repairing cost and frequency of claims with respect to a legacy product sold in 2017 and 2018, the Company conducted intensive experiments and a root cause analysis, which was completed in October 2021. The Company concluded that a component purchased from a supplier was not meeting the Company’s performance standards. As a result, the Company determined that the impacted legacy products sold would need to be replaced before the expiration of the warranty term. This reassessment resulted in a change in estimate for additional accrual in 2021 of $46,485 relating to those legacy products. As the component was not incorporated into other products, no additional accrual was made to other existing products sold.