TSMC, Stion sign technology and supply agreement

Jun 17, 2010, 1:08 GMT

Taipei - Taiwan Semiconductor Manufacturing Co (TSMC) will take a 21 per cent stake in a US solar photovoltaic company as part of its effort to develop green energy, TSMC said Wednesday.

TSMC, through its US affiliate VentureTech Alliance, will invest 50 million dollars in Stion, the statement said.

The two firms have also reached a series of agreements covering technology licensing, supply and joint development.

Under the agreements, 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.

'Working with Stion, TSMC gains a robust thin film technology with inherent low cost structure. With TSMC's R&D capabilities and manufacturing expertise, we believe we can achieve long-term overall leadership in solar PV solutions, and we are happy to be able to contribute to a greener economy,' Rick Tsai, TSMC's president of new businesses, said.

'We are pleased to form a win-win relationship with TSMC, a world-class company. The collaboration enables Stion to scale its operations, leverages both companies' strengths to achieve market leadership and to deliver on the promise of efficient, affordable solar energy,' Chet Farris, president and chief executive of Stion, said in the statement.

TSMC, based in Hsinchu, western Taiwan, is the world's largest semiconductor foundry.

California-based Stion is a manufacturer of high-efficiency thin-film solar panels based on state-of-the-art materials and device technology and proven production processes.