Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) (TSMC), one of the largest semiconductor manufacturers in the world, plans to buy its way into the solar industry.
The company announced it will purchase a 20% stake in Motech Industries Inc. (TWO: 6244), a leading solar cell manufacturer in Taiwan.
TSMC will subscribe through a private placement for 75.32 million new Motech shares, making it the largest single shareholder.
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.
The transaction is subject to Motech’s shareholders’ approval and regulatory approval.
With manufacturing facilities in Taiwan and China, Motech (www.motech.com.tw) 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 a leading provider of photovoltaic systems and photovoltaic inverters in Taiwan.
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.”
Motech Industries Inc. entered into solar cell production in 1999 and makes single and multi-crystalline silicon solar cells at facilities in Taiwan and China.