TSMC to Quit Solar Business Activity

We all know that solar energy will face a positive growth in the next future. However, Leading IC foundry Taiwan Semiconductor Manufacturing Co. Ltd. (Hsinchu, Taiwan) is moving countertrend by announcing its intent of quitting the solar energy subsidiary activity with TSMC.

Indeed, the big foundry is expecting to close the manufacturing operation by August 2015. The decision  arrived after selling, last January, also its LED-making subsidiary TSMC Solid State Lighting, to Epistar Corp. (Hsinchu, Taiwan) for about NT$825 million (about $25.8 million).

SOLAR PRICES PLUNGE Since the 1970s the cost of photovoltaic panels has decreased from nearly $80 a watt to an average of $.63, driving a solar boom worldwide.

The unexpected decision of quitting the solar energy market is due to a bad entrance timing in the industry and, above all, by an inefficient economy of scale that heavily impacted on the cost reduction’s ability.

Sure enough, TSMC Solar’s employees don’t have to worry about their future. The Big foundry already offered job offers to them together with assuring warranty covers to all its clients.

Graphic Source: Paul Maycock; BNEF