AUO to pocket silicon wafer firm M.Setek

AUO to pocket silicon wafer firm M.Setek

The move comes as part of AUO’s aim of strengthening its position in the energy business by securing important materials in the solar industry

Tuesday, June 23, 2009

BANGALORE, INDIA: Japanese silicon wafer supplier M.Setek is likely to be dragged into LCD panel maker AU Optronics fold, with AUO mulling over picking majority stake in the company.

The move comes as part of AUO’s aim of strengthening its position in the energy business by securing important materials in the solar industry.

M.Setek makes both polysilicon and monocrystalline silicon wafers. Meanwhile, AUO is said to have lined up an initial investment of US$125 million to gradually pick a majority shareholding of M.Setek. The final investment plan will be ready depending on future development of M.Setek.

The silicon wafer manufacturer is a supplier to many solar cell makers in the global arena Taiwan-based E-ton Solar Tech had in May last year struck a deal with M.Setek to invest US$200 million to fund the Japan company's construction of a new polysilicon fab in return for half of the fab's annual output, said a Digitimes report.

AUO, which is a prominent player in the energy business now aims to offer integrated technology and services to the global solar space. Company officials said that it is working with photovoltaic (PV) system makers in order to accumulate capabilities in system integration and design for the end market.

The new upcoming deal is seen as a measure that would help AUO take a leap forward in the energy business. The proposed state buy in M.Setek is expected to jointly bring in added input to solar energy sources and providing better renewable energy solutions.

©CIOL Bureau