Taiwan Semiconductor Acquires 20% Stake in Motech with $103 Million Investment- Motech Buys GE Solar Plant In Delaware

Taiwan Semiconductor Manufacturing Company Limited (TSMC) and Motech Industries Inc. (Hsinchu and Tainan, Taiwan, R.O.C.) on December 9^th, jointly announced the signing of a share subscription agreement, under which TSMC will subscribe through a private placement for 75.32 million new Motech shares. 

The total consideration is approximately NT$6.2 billion (US$193 million), or NT$82.7 per share, representing a 16.9% discount to Motech’s 3-month average closing price. TSMC will become the largest shareholder of Motech with 20% shareholding through this investment. The transaction is subject to Motech’s shareholders’ approval and regulatory approval.

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.

Dr. Rick Tsai, President of TSMC New Businesses, said, “We are delighted to partner with Motech in our pursuit of new opportunities in the high-growth solar sector. 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.”

“TSMC’s investment affirms Motech’s competitive position in the solar industry,” said Dr. Simon Tsuo, Chairman and CEO of Motech. “TSMC’s technology leadership and global management expertise would add significant value to Motech, as we strengthen supply chain integration and improve our operational efficiency. We plan to work closely with TSMC to address new business opportunities. We believe this partnership would further enhance Motech’s leadership position in the solar industry. 

On December 28^th, 2009 Motech has signed an agreement to acquire GE Energy’s Delaware solar module assembly operation on  The plant, which is located in Newark, Delaware assembles crystalline silicon based photovoltaic modules. The plant currently employs 75 people. 

 In the purchase agreement, Motech will be entrusted to maintain GE’s high standards for solar module manufacturing at the existing factory site. With the acquisition, Motech will be granted the rights to use GE Energy’s module trademark for two years. In addition, Motech will assume the responsibility to provide warranty services to GE’s existing module clients.  

The agreement is built on the foundation of an existing relationship between Motech and GE Energy where Motech has been a supplier of solar cells to GE Energy for the past four years.  

 “We are pleased to announce this agreement to purchase the solar module operation from GE Energy” said Dr. Simon Tsuo, Chairman and CEO of Motech. “We will do our best to maintain the high quality and safety standards GE has established at this factory.”

The transaction is subject to customary closing conditions and is expected to close in early January 2010 

Blogger's note: much of the nanofabrication equipment and many of the processes used in semiconductor manufacturing are applicable to manufacturing solar modules. Solar power manufacturing will be a driving force in the nanofabrication equipment industry.