TAIWAN I.T. GIANT PUTS $50 MIL IN THIN FILM

TSMC Takes Stake In US Solar Energy Firm, Enters Technology Tie-Up
Alex Pevzer, June 16, 2010 (Dow Jones Newswires via Wall Street Journal)

"Taiwan Semiconductor Manufacturing Co. (TSM), the world's largest chip contract maker by revenue, is increasing its presence in the clean energy industry by taking a stake in U.S.-based Stion Corp. and tying up with the company for the licensing, supply, and joint development of thin-film solar photovoltaic module technology.

"TSMC, which has been pushing to expand into renewable energy, said its unit VentureTech Alliance Fund III will invest US$50 million for a 21% stake in Stion…The move is the latest example of a Taiwan technology giant expanding into the fast-growing solar-energy industry, as companies seek to both diversify from their core business and also ride the "green" energy wave."

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"In May, Taiwan flat-panel maker AU Optronics Corp. (AUO) and U.S.-based solar-panel maker SunPower Corp. (SPWRA) formed a joint venture to build and operate a US$1.2 billion solar-cell plant in Malaysia.

"TSMC said in December that it would pay US$193 million for a 20% stake in a Taiwan solar-cell maker Motech Industries Inc. and in March said it will invest an initial NT$5.5 billion to build its first light-emitting-diode factory."

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"Under the agreements with Stion, Stion will license and transfer its thin-film technology to TSMC, while TSMC will provide a certain quantity of solar modules to Stion using the technology. TSMC and Stion will also work together to enhance the thin film technology through joint development…

"Stion was founded in 2006 and is backed by venture capital investors, including Khosla Ventures, Lightspeed Venture Partners, General Catalyst Partners, and Braemar Energy Ventures…"