Question-and-Answer Session
Operator
Thank you, we will now take questions from the telephone line. (Operator Instructions) The first question is from Pierre Maccagno of Needham. Please go ahead.
Pierre Maccagno - Needham
Hi, Phil and Wilson.
Phil Yin
Hi Pierre, how do you do.
Pierre Maccagno - Needham
Fine, thanks. Could you comment on the ASPs for both gallium arsenide semiconductor and semi insulating, as well as the germanium. Any changes that you see there in the market?
Phil Yin
Yeah, I think on the semiconductor side, Pierre, we still see ASPs eroding. It’s mostly the Asia-Pacific, Taiwan market, as you know, that's going to keep going down, because the goal is to compete against the rest incandescent light, so there's a lot of pressure to decrease the material, obviously because it’s the big portion of it. On the semi-insulating side, that is stabilizing, I guess maybe that's the term to use, and on the germanium side, it’s sort of holding its own, I guess.
Pierre Maccagno - Needham
I see. So, even though there is so much demand, I guess, it still continues to drop on pricing?
Phil Yin
Yeah, specifically on semi conducting for LED application. Yes.
Pierre Maccagno - Needham
The additional customer that you were talking about, is this a very large handset customer or..?
Phil Yin
He is a North America guy that I was talking about?
Pierre Maccagno - Needham
Yes.
Phil Yin
No, that’s an LED customer.
Pierre Maccagno - Needham
An LED customer, okay, that's all I have. I might ask questions later.
Wilson Cheung
Thank you.
Phil Yin
Thanks
Operator
Thank you, the next question is from Avinash Kant of Broadpoint Capital. Please go ahead.
Avinash Kant - Broadpoint Capital
Good afternoon, Phil and Wilson
Phil Yin
Hi, Avinash.
Wilson Cheung
Hi, Avinash.
Avinash Kant - Broadpoint Capital
A few questions, if you could talk a little bit about the germanium side, where you are in terms of - you talked about one particular customer in Europe, but where are you in terms of qualification with the other three in Europe, and what is the situation with the American customers on the germanium side?
Phil Yin
Okay, as I mentioned, one of them has completed qualification. He actually has already completed the audit of our facility last week. Audit was very successful. We are going to be supplying some additional samples, just for some minor checks, and we should see some production samples, most likely before the second half.
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