Manufacturing News

TSMC to Build PV Cell Factory in Central Taiwan

Silicon foundry giant Taiwan Semiconductor Manufacturing Co. (TSMC) will construct a factory in the Central Taiwan Science Park to turn out CuInGaSe2-based (CIGS-based) thin-film solar cells, according to the company's New Business President Rick Tsai.

Tsai pointed out that planned factory would be operated on the basis of cooperation between TSMC and Stion Corp. of the United States, which recently reached a series of agreements concerning licensing, supply and joint development of photovoltaic (PV) technology.

According to the agreements, Stion, a globally leading supplier of high-efficiency thin-film solar panels, will transfer its CuInGaSe2 (CIGS) PV technology to TSMC in exchange for No.1 pure silicon foundry's pledge to supply it solar cells using the technology.

TSMC is applying for five hectares of land on the science park to accommodate the solar-cell factory. The company has already been granted 18 hectares of land by the park's administration for its plan to build a 300mm wafer factory.

Tsai declined to disclose details of the solar factory plan, simply stressing that TSMC will focus on thin-film technology when setting up its PV manufacturing capability. The statement is interpreted as the company's deliberation not to step into the field of crystalline silicon solar cell that its partner, Motech Industries, specializes. Industry executives estimate the investment to cost billions of NT dollars.

It is TSMC's another PV investment case since the company announced last year it would venture into green-energy sectors, namely PV and light emitting diode (LED) manufacturing, in an effort to keep its operation lucrative at a time when competition in silicon foundry is growingly intense. TSMC Chairman and CEO Morris Chang said LED and PV are high-profit, high-growth market and will play significant roles in contributing to the company's revenue over the next five to 10 years.

Tsai forecast investments in PV industry would remain brisk in the second half of this year as production costs of the supply chain would persistently pare, thereby considerably boosting returns from the investments.

However, he stressed his company would not operate solar-power factory although it is already capable of running the facility.

TSMC is another Taiwan's heavyweight enterprise to announce non-crystalline PV production plan after NextPower Technology Inc. of silicon foundry supplier United Microelectronic Corp. (UMC) started production of amorphous thin-film solar cells in Central Taiwan Science Park and Sunner Solar Co., Ltd. invested in non-crystalline silicon PV production in the same park.

Ritek Corp., a Taiwan-based optical-disk maker, has also invested in CIGS PV fields.

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