TSMC to take 20% stake in solar cell manufacturer
TSMC will become the largest shareholder of solar cell manufacturer Motech with 20% shareholding as the foundry expands operations in the solar arena.
By Suzanne Deffree, Managing editor, news -- EDN, December 9, 2009
Taiwan Semiconductor Manufacturing Co will invest approximately $193 million (NT$6.2 billion) in solar cell manufacturer Motech Industries Inc as the foundry expands operations in the solar arena.
The deal will give TSMC 75.32 million new Motech shares at about $2.56 (NT$82.7) per share, representing a 16.9% discount to Motech’s three-month average closing price. In doing so, TSMC will become the largest shareholder of Motech with 20% shareholding.
“We are delighted to partner with Motech in our pursuit of new opportunities in the high-growth solar sector,” said Rick Tsai, president of TSMC new businesses, in a statement today. "With the investment, TSMC intends to leverage Motech’s established platform to accelerate our time to market, better evaluate opportunities along the solar value chain, and further formulate our overall solar strategy.”
According to TSMC, Motech is a leading solar cell manufacturer worldwide and the largest in Taiwan. With manufacturing facilities in Taiwan and China, Motech pursues a vertical integration strategy and has in-house ingot and wafer capabilities and a majority investment in polysilicon production via advanced fluidized bed reactor technology. In addition, Motech is also Taiwan’s leading provider of photovoltaic systems and photovoltaic inverters, TSMC said.
TSMC noted that the transaction is subject to Motech’s shareholders’ approval and regulatory approval.
