PSC's Neo Solar equity to go to TSMC

TAIPEI: In a bid to directly acquire part or all of the DRAM maker's 9.7 per cent stake in Neo Solar Power, Taiwan Semiconductor Manufacturing Company (TSMC) has inked an agreement with Powerchip Semiconductor Corporation (PSC).

Neo Solar is a a maker of crystalline silicon solar cells.

According to a report, the transfer of stake transfer is likely to be completed in a few days, most probably this week itself. It has been estimated that the total transaction estimated to be almost NT$700 million (US$21.26 million).

Though the two companies who have reportedly signed the deal haven't made public the agreement, it has been for long being reported that TSMC was all set to make an equity investment in Neo Solar. Neo Solar's chairman and CEO, Quincy Lin, has been quoted as saying that said that the company “is open to opportunities of introducing new shareholders who could offer strategic alliances complementary to the company's business operation”.

Meanwhile, the TSMC's board of directors recently approved plans to allocate US$50 million for investment in solar energy-related areas. As of June 30, 2009, TSMC held about NT$171.47 billion in cash on hand. Neo Solar had clocked a net income of NT$831 million on revenues of NT$10.18 billion in 2008, compared to net sales of NT$3.66 billion and a profit of NT$548 million in 2007. However, it fell back to losses of NT$424 million during the first quarter of 2009.