Taiwan Semiconductor, from chips to solar

HSINCHU, Taiwan, June 23 (UPI) -- Taiwan Semiconductor Manufacturing Co., the world's largest contract microchip maker, plans to operate its plants on solar power with the aim of reducing carbon emissions, the company announced.

Electricity consumption for the production of each wafer unit has fallen 30 percent since 2001, said president of TSMC's new business division Ricky Tsai, Channel News Asia reports.

Speaking to reporters on the sidelines of the Taiwan Semiconductor Industry Association meeting Monday, Tsai said the company is also seeking to gain a foothold into China's green energy market but is still not sure if it will set up manufacturing facilities there.

"If we were to set up plants in China, we have to take into account not only labor cost but also the following: production efficiency, cost structure and supply chain management," he said.

Tsai's statement follows TSMC's announcement last week that it had acquired a 21 percent stake in San Jose, Calif., solar cell firm Stion Corp. through its affiliate, VentureTech Alliance, for $50 million.

Under the deal, Stion would license and transfer its thin-film technology to TSMC, while TSMC would provide a certain quantity of solar modules to Stion using the technology. The two companies would also collaborate to enhance the thin-film technology through joint development.

"Working with Stion, TSMC gains a robust thin film technology with inherent low cost structure," said Tsai in a release announcing the deal.

"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," he said.

Tsai said Monday that TSMC would set up a thin-film solar photovoltaic module plant in the Central Taiwan Science Park, where mass production would take place.

The Stion deal gives TSMC a presence in both Asia and the United States as Taiwan aims to increase its renewable energy.

Last year TSMC also announced plans to buy a 20 percent state in Taiwanese solar cell producer Motech Industries.

And state-owned Taiwan Power Company said last month it plans to build a 5-megawatt solar power station, the island's largest, in the southern county of Tainan.

Taiwan aims to have renewable energy to account for 15 percent of its electricity generation capacity by 2025.

The country passed its renewable energy development act last June, saying it would invest $622 million into advanced technologies, including solar and wind power, fuel cells and biofuels.